Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo is turning more bullish--while it hasn’t been a blastoff, the evidence has improved step by step, and now most things he’s looking at are pointed up. With growth stocks still doing well (but not amazing), he’s picking his spots, but he’s not having any trouble finding ideas -- as evidenced by the numerous names from a bunch of sectors he takes a look at here.
Stocks Discussed: MU, NVDA, TSM, ONTO, HWM, CRS, BOOT, CROX, FRPT, NBIX, LLY, KKR, HOOD, PDD, JD, CPNG, IBIT
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the return of the meme stocks and why this time it’s different, their takeaways from this week’s inflation data, and they highlight some under-the-radar statistics from the latest earnings season. Then, they’re talkin’ Buffett. They break down what we learned from the latest annual meeting of Berkshire Hathaway, how Warren Buffett is positioning his portfolio for the months ahead and what Buffett’s favorite stock market indicator says about valuations.
Cabot Webinar
2 High-Potential Little-Known Stocks Every Investor Should Own
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from January 24, 2024 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Plus member benefits.
RECENT BUY AND SELL ACTIVITY
This table lists stocks bought or sold in the most recent Issues or Updates.
Portfolio Updates This Week
Cabot Growth Investor
Bi-weekly Issue May 16: The market has steadily improved its standing since its low three weeks ago, so much so that our Cabot Tides and Two-Second Indicator have returned to bullish territory; that had us start putting money to work last week and we’re doing a bit more buying tonight. Granted, this isn’t the same environment as, say, last November, as buying pressures are still sporadic and growth stocks are good (not exceptional), so we’re moving in steps and want to be “pulled” into a heavily invested position via more strength.
In tonight’s issue, we review all of our stocks, especially our recent buys, and write about one growth area where it appears investor perception has changed for the better in a big, big way.
Bi-weekly Update May 9: WHAT TO DO NOW: Do a little buying. The market’s evidence has improved over the past couple of weeks, with our Cabot Tides on the verge of a green light and our Two-Second Indicator having flashed an all-clear. Even so, growth measures (Aggression Index, Growth Tides) are still broadly neutral, while earnings season has been tricky for individual stocks. Put it together and we’re doing a little buying tonight but starting slow: In the Model Portfolio, we’re adding a half-sized stake (5% position) in TransMedics (TMDX) and adding a 3% position in Cava Group (CAVA), leaving us with around 36% in cash. We’re also placing Pulte (PHM) back on Buy. Details below.
Cabot Top Ten Trader
Weekly Issue May 13: There’s no doubt the evidence has improved during the past three weeks, with the major indexes living above their 50-day lines, the broad market returning to good health and with some leadership names perking up, too. Of course, that doesn’t mean it’s perfect out there—defensive-type indexes and stocks have been outperforming, earnings season has been very tricky and we’re even starting to see some hot and heavy action in speculative names, which usually isn’t a great sign. All in all, the evidence is certainly more good than bad, so we’ve extended our line a bit but are also looking to be “pulled” into a more heavily invested position should more leadership names emerge. For now, we’ll leave our Market Monitor at a level 7.
This week’s list has something for everyone, with a lot of charts showing power, usually following earnings. For our Top Pick, we’re going to the cyclical side of the market, with a name that has out-of-this-world earnings and is just emerging from a tight area.
Movers & Shakers May 17: Make it four in a row when it comes to constructive weeks for the market, as the major indexes and key growth indexes and funds are all again in the black, generally up in the 1% to 2% range.
Cabot Value Investor
Monthly Issue May 2: The dark clouds of persistent inflation and high interest rates continue to hover over the market. But with a record amount of capital on the sidelines and little to no movement in most stocks over the last two-plus years, I’m optimistic that better days are ahead, assuming the inflation/Fed clouds eventually part. Thus, I continue to seek out companies that are essentially growth stocks at value prices. And today, we add another one to our portfolio in the form of a big-name company that’s benefitting greatly from a return to normalcy in a post-Covid world … but whose shares are trading at barely half their pre-pandemic peak.
Enjoy!
Weekly Update May 16: The market is at all-time highs, the Chiefs beat the 49ers in the most recent Super Bowl, and so-called meme stocks are headed to the moon. Is it January 2021 all over again? Sure feels like it.
Yes, GameStop (GME), AMC Entertainment (AMC) and the like are back, with those and a few others nearly tripling this week. The last time that happened, things didn’t end so well for the meme stocks. Or the market. Should it be a similar red flag for the bull market this time around?
Cabot Stock of the Week
Weekly Issue May 13: It’s another dreaded inflation week, yet there’s not much dread in the market right now, considering the S&P 500 is up 3.75% in May and the Dow is off to its best winning streak in May ever (!). Still, a “hot” CPI or PPI number this week could prompt another pullback like we saw in April, so this week we’re playing it safe by adding a reliable, large-cap, dividend-paying healthcare stock. It’s been a longtime favorite of Cabot Dividend Investor Chief Analyst Tom Hutchinson.
Cabot Explorer
Bi-weekly Issue May 9: As many analysts focus on inflation and the job market, they miss that earnings per share for companies in the S&P 500 for the first quarter now look to be up 5.2% from a year earlier, according to FactSet.
Since profits and profit growth are the lifeblood of an economy and stock market, it pays to watch them closely.
Bi-weekly Update May 16: Major indexes are at all-time highs as data indicated inflation retreated a bit. And many of our positions are soaring.
That includes new addition Neo Performance (NOPMF), whose shares were up 17% during the stock’s first week as an Explorer recommendation as the company reported a swing to profitability. It wasn’t our only holding to post double-digit performance last week.
Details inside.
Cabot Small-Cap Confidential
Monthly Issue May 2: The digital marketing world has been turned upside down as new privacy measures make it more challenging to track consumers across online and in-app activities.
But one company has been building out a unique opt-in data set and the backend technology to do just that. It sells this information to the biggest companies in the world so they can reach consumers with personalized marketing messages. With the new privacy measures, business is strong.
All the details are inside the May Issue of Cabot Small-Cap Confidential.
Weekly Update May 16: We’ve been able to enjoy a break in the earnings action this week (finally), and without a lot of company-specific updates, we’ll keep things short and sweet today.
The main message is that the broad market continues to rise on the back of rate cut expectations and a falling 10-year yield (down to 4.35% from over 4.7% a couple weeks ago).
Cabot Dividend Investor
Monthly Issue May 8: The market has rallied for more than a year in the happy space between inflation and recession. But that dynamic is unlikely to persist. Amid persistent inflation, it is likely that the market will have to contend with high interest rates or a faltering economy. Each one is problematic.
In a flatter or faltering market, dividends provide a bigger part of total returns. Let’s get ahead of the curve and get a big fat yield.
In this issue, I highlight a stock with a massive dividend yield that has shown good price stability for several years. The company can also thrive amidst inflation and high or rising interest rates and can provide a high income return even if the market struggles through an inflation/recession catch-22.
Weekly Update May 15: It’s been a good month in the market, so far. The S&P 500 has regained all the dip from April and is now within a whisker of the all-time high. The driving forces have been an improving interest rate story and solid earnings.
With 92% of S&P 500 companies having reported, earnings increased an average of 5.4% over last year’s quarter. But it’s better than that. If you take out the report of Bristol-Myers Squibb (BMY), average earnings growth would be 8.3% for all the other stocks on the index. That’s a strong gain.
Cabot Early Opportunities
Monthly Issue May 15: In the May Issue of Cabot Early Opportunities we dig into prospects across next-gen AI-enabled devices, emerging markets, meal replacement shakes and picks-and-shovels type infrastructure plays.
Cabot Profit Booster
Weekly Issue May 14: Somewhat quietly, the Dow has rallied eight straight days, and is leading the market higher as of late. Such is the rotation of the market, especially during earnings season.
For the week the S&P 500 gained 1.4%, the Dow rallied 1.75% and the Nasdaq gained 1%.
Cabot Income Advisor
Monthly Issue April 22: The rally sputtered. And it’s all about interest rates.
Investors had been factoring in falling interest rates and a soft landing. But now, investors are increasingly expecting no landing and continued high rates. Recent strong economic numbers, along with higher-than-expected inflation, are changing the perception.
It looks like these high rates will stick around for a while. And most stocks don’t like high rates. But not all. There are some companies that actually thrive with higher interest rates. And that creates opportunity. In this issue, I highlight a stock that pays a massive dividend generated by these high interest rates. As income investors, we can reap the bounty.
Weekly Update May 14: The market has regained its footing. After a 5% pullback in the earlier part of April, the S&P 500 has since regained nearly all that was lost, and the index is within bad breath distance of the high.
Earnings have been good. With 92% of S&P 500 companies having reported, earnings increased an average of 5.4% over last year’s quarter. But it’s better than that. If you take out the report of Bristol-Myers Squibb (BMY), average earnings growth would be 8.3% for all the other stocks on the index. That’s a healthy gain.
Cabot Turnaround Letter
Monthly Issue April 24: In twenty years of price forecasting, the most valuable lesson I have learned is that the rate of change tells us everything we need to know about the immediate future. When it accelerates, it tends to continue accelerating. When it decelerates, it tends to continue decelerating. And surprisingly, this tends to be the case no matter what metric we choose to examine.
This month’s Buy recommendation, Barnes Group (B), is an aerospace and industrial components maker that is stepping up its efforts to become more valuable, helped by a new CEO and urged on by pressure from a credible activist investor that recently gained several board seats.
Weekly Update May 17: In today’s note, we discuss the recent earnings reports from Kopin Corporation (KOPN), Adient (ADNT), and Bayer (BAYRY).
Cabot Cannabis Investor
Monthly Issue April 24: Cannabis stocks have fallen sharply since the beginning of April. The AdvisorShares Pure U.S. Cannabis (MSOS) is down 15.4% since April 1. There are two reasons.
First, investor enthusiasm for stocks overall has waned, creating significant declines across indices. Because cannabis is perceived as a riskier sector, cannabis stocks decline more than most stocks when investors move into risk-off mode.
Second, many analysts and investors had hoped for visible progress on key catalysts by now – chiefly rescheduling and cannabis banking reform. They have been disappointed.
Monthly Update April 10: Cannabis stocks are generally flat since I sent you the March 27 issue of Cabot Cannabis Investor.
Given the potential magnitude of near-term catalysts, I suggest continuing to hold exposure to the group, and accumulating on weakness. If you have zero exposure, consider buying some now. If you have full exposure, consider adding on any substantial weakness of 2%-4% or more in this highly volatile group.
Cabot Money Club
Monthly Magazine May: Household debt is rising, and consumers are feeling the squeeze of higher interest rates everywhere, from mortgages to auto loans to credit cards. In this month’s issue we’ll share ten warning signs that signal financial trouble ahead and the ten bad financial habits you need to drop now to avoid it.
Stock of the Month May 9: It was more of the same for the markets this past month—some momentum, but ultimately, we ended up in just about the same place.
Investors are a little gun-shy as most were expecting Fed rate cuts to begin in the latter half of the year. But as the inflation beast is proving harder to tame than expected, Fed Chair Powell has indicated it may take longer before we see a rate cut.
Ask the Experts
Prime Question for Tyler: Vertiv Holdings (VRT): Is there negative news?
Tyler: I haven’t seen anything major. There was a note regarding a 13F filing that Starboard sold its position of 2.6 million shares. But also, yesterday BofA increased their price target by 15% to 115. I will continue to monitor.