Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, small-cap expert Tyler Laundon talks about the broad market’s record highs and why small caps haven’t done much in the three weeks since the Federal Reserve cut interest rates. He discusses the valuation of these indices and ties their multiples to expected earnings growth, which is accelerating. Tyler wraps up the video with a quick overview of a dozen cybersecurity stocks, a specialized are of the market where analysts are increasingly bullish.
Stocks Discussed: OSPN, STER, RPD, TENG, RBRK, S, CYBR, GEN, ZS, FTNT, CRWD, PANW
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss Tesla’s (TSLA) “We, Robot” event and the market’s response to the Robotaxi and the Optimus dancing robots, the latest inflation figures, and whether third-quarter earnings season will move stocks. Then, they welcome on Carl Delfeld, Chief Analyst of Cabot Explorer, to discus the “Great Rebalance,” money moving from U.S. equities to global markets, and how to invest around the world. You can find the promotion mentioned on today’s episode, as well as future promotions, at cabotwealth.com/street.
Cabot Webinar
Profiting from the Market’s Next Big Move: Key Strategies and Top Picks for 2025
Tuesday, October 22, 2024 at 2:00 PM ET with investing expert Mike Cintolo, Cabot’s Chief Investing Strategist
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts 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 October 3: The market remains positive, but not powerful, with a lot of growth stocks and especially growth indexes and funds still batting with months-old resistance. Big picture, we think the next major move is up and a lot of the leadership of any coming run has already declared itself; indeed, we think we own some of the best names out there. But we’re not pushing the envelope here, as the market continues to deal with uncertainties (including this week’s Middle East tensions and dockworkers strike). We have no changes again tonight, though we’re staying flexible and are looking to add exposure as opportunities arise.
Bi-weekly Update October 10: WHAT TO DO NOW: Continue to lean bullish. The market’s overall position remains in a similar position—far more good than bad, though still a few flies in the ointment—so we continue to look to add exposure, but to do so carefully, as many stocks and indexes are battling with resistance. Tonight, we’re going to fill out our position in Flutter Entertainment (FLUT), adding another half-sized stake (5% of the portfolio). We’re also placing Argenx (ARGX) on Hold given its recent action. Our cash position will now stand near 25%.
Cabot Top Ten Trader
Weekly Issue October 14: It hasn’t been any dramatic one- or two-day event, but the evidence has moved steadily toward the bullish case during the past couple of weeks. We will say that there are more than a few secondary factors that aren’t ideal, including the fact that interest rates are going up nearly every day, so we don’t think now’s the time to cannonball into the pool, per se, but we’re mostly holding our winners (booking the occasional partial profit on the way up) and gradually extending our line as new opportunities emerge. We’re lifting our Market Monitor to a level 8.
This week’s list is definitely growth-ier than the past couple of weeks, which is no surprise given the strength seen in that area. Our Top Pick has re-emerged after a brutal summer correction and has big leverage to a strong equity and crypto market. It’s not for the faint of heart, so use a loose stop if you go in.
This week’s list is another one with something for everyone in terms of stories and setups. Our Top Pick is a firm that has its hands in many nuclear power cookie jars; the stock just emerged from a multi-month rest on big volume.
Movers & Shakers October 11: The market saw a ton of volatility in July, August and then with a good-sized early pullback in September, but this was the third straight week of quieter action, with most indexes up less than 1% on the week—though, encouragingly, we did see better action among some growth funds and individual stocks.
Cabot Value Investor
Monthly Issue October 3: Between the expansion of the war in the Middle East, a U.S. dockworker strike that could slow the supply chain again, and the uncertainty of a too-close-to-call presidential election next month, there are a lot of headwinds out there serving to counterbalance the good vibes created by last month’s Fed rate cut. Add in the fact that we’re in the traditional “spooky season” of October – the month in which the market has bottomed in each of the last four years – and it’s a good time to add some security to your portfolio.
So today we do just that … by adding a well-known home security company to our Buy Low Opportunities Portfolio. It’s been in business for a century and a half but has only been a public company for the past seven years. And with profits accelerating, the stock has become cheap.
Details inside.
Weekly Update October 17: We spend the vast majority of our time focused on U.S. stocks, and rightly so.
After all, although America has just 4% of the world’s population and generates 23% of the global GDP, 72% of worldwide investment capital is spent on U.S. stocks. That’s a stat our global investing expert, Carl Delfeld, relayed to me and my colleague Brad Simmerman on our latest Street Check podcast (click here to listen to the entire conversation). I knew the global investment axis tilted toward the U.S. – just maybe not that much.
Cabot Stock of the Week
Weekly Issue October 14: Stocks are at all-time highs, yet again, defying the myriad potential macro tailwinds (expanding war in the Middle East, looming presidential election, another damaging hurricane, Q3 earnings season underway, etc.) that have been threatening to derail the market. One of them still could, but for now, we’ll stick with what’s in front of us, and that’s a market with plenty of momentum. Today, we lean into that momentum by adding a mid-cap tech stock recently recommended by Tyler Laundon to his Cabot Early Opportunities audience.
Details inside.
Cabot Explorer
Bi-weekly Issue October 10: JPMorgan (JPM) is due to report results Friday, kicking off bank earnings season. Lately, the market seems to be more focused on earnings than Fed interest rates, and this is a good thing.
As markets move towards the “Great Rebalance”, looking to diversify portfolios with different asset classes and international stocks, the Explorer and I are headed to Europe, Asia, and Latin America during the next year. But today, stick to the U.S. and add a very familiar face to the portfolio.
Bi-weekly Update October 17: Bank stocks such as Morgan Stanley (MS) and Goldman Sachs (GS) had strong earnings while tech is starting to show signs of weakness. ASML (ASML) reported sharply lower quarterly sales and giant Samsung Electronics’ share price (listed on the Korea Exchange) has fallen almost 30% over the past six months as it struggles to catch up with SK Hynix and Micron in supplying the most advanced AI chips.
Still, everyone is waiting for Nvidia’s (NVDA) earnings as capital spending in AI remains robust.
Cabot Small-Cap Confidential
Monthly Issue October 3: Surging data center demand. Electric vehicles. Heat pump HVAC systems. Severe weather events. Hurricanes. Rising sea levels. North Carolina flooding.
This is just a short list of the drivers behind rising electricity demand, the harsh realities of being behind the curve when it comes to global warming, and the resulting push toward energy efficiency and greenhouse gas emission reductions.
Today’s portfolio addition is a small and still-unknown company that helps solve these challenges, moving the country toward a more sustainable, clean-energy future.
I think you’ll find it interesting.
Weekly Update October 17: While the S&P 500 Index made record highs (again) this week, the real story has been in small caps.
From last Wednesday’s close through mid-day today, the S&P 600 small-cap index is up 2.9%, more than twice the return of the large-cap index, which is up 1.3%.
The gains have been propelled by consumer discretionary, staples, financials, industrials and tech stocks.
Cabot Dividend Investor
Monthly Issue October 9: There is a colossal housing shortage in this country.
A decade of underbuilding in the housing industry following the financial crisis has left the industry unable to meet the needs of the growing population. It is estimated that the demand for homes exceeds the current national supply by a whopping 4.5 million.
The jilted supply/demand dynamic has caused the median U.S. home price to soar a staggering 40% just since the pandemic. In addition, mortgage rates have soared to the highest level in two decades. The prices and mortgage rates are making housing unaffordable for vast numbers of potential buyers. Sellers are unwilling to trade up and get a higher mortgage rate.
There aren’t enough new homes, and existing homes aren’t coming on the market either. Buyers can’t buy and sellers won’t sell. But there is reason to believe the housing problems will get a lot better in the years ahead.
While the situation is likely to improve, the supply/demand imbalance will likely remain for several years. That’s a problem for the housing market and economy to work through. But it’s good news if you’re a homebuilder. New homes should be in high demand for years to come, and sales should increase with the improving conditions.
In this issue, I highlight the premier luxury home builder in the U.S. The stock has the best track record of all large homebuilders, and the company is in an ideal position to benefit from high demand and increasing buying in the years ahead.
Weekly Update October 16: The two-year-old bull market is about to meet third-quarter earnings. And things look good.
The bull market is alive and well and shows no signs of stopping. Since the bear market low in October of 2022, the S&P 500 has risen over 60%. It has been powered by the artificial intelligence catalyst, a surprisingly resilient economy, and the peaking of interest rates. The current “soft landing” expectation means we are getting rate cuts but no economic pain. That’s good news.
Cabot Early Opportunities
Monthly Issue October 16: In the October Issue of Cabot Early Opportunities, we go deeper down the software rabbit hole, jump into a new grocery chain stock I suspect you’ve never heard of, dabble with a hot AI semiconductor stock and consider the potential of an EV stock that’s exploded on news of a big DOE loan.
As always, there should be something for everyone!
Cabot Profit Booster
Weekly Issue October 15: It was yet another strong week for the market and countless stocks, many of which are breaking out to new highs. At some point the market may cool off, but for now at least, I’m not seeing any truly worrying signs. And in fact, the S&P 500 closed at a new record high as the index gained 1.44% on the week, while the Dow added 1.56%, and the Nasdaq rallied 1.63%.
Cabot Income Advisor
Monthly Issue September 24: A new era has begun.
Most of the last two years have been an environment of rising and high interest rates and technology sector dominance. Now, we are entering a period of falling interest rates and a slowing economy. The new stage will bring different winners and losers.
The previously beleaguered interest rate-sensitive stocks and defensive stocks ignited and began to lead the overall market higher as technology pulled back. Since the summer, this new trend has been confirmed. And it is unlikely to be a mere short-term gyration but rather the beginning of a new environment that should last for some time.
In this issue, I highlight a great monthly income stock. The yield is massive, and it provides a high income in an uncertain market. The stock also can provide great price performance when the interest rate cycle goes its way. This point in the cycle provides a great opportunity to get a high income and total return on the right side of a pronounced market shift ahead.
Weekly Update October 15: The bull market is now two years old and shows no signs of stopping.
Since the bear market low in October of 2022, the S&P 500 has risen more than 60%. It has been powered by the artificial intelligence catalyst, a surprisingly resilient economy, and the peaking of interest rates. Overall earnings are projected to be strong, and the market could get a further boost from AI-specific earnings this quarter.
Cabot Turnaround Letter
Monthly Issue September 25: For much of the last two years, the white-hot semiconductor space was the industry group least likely to yield any meaningful turnaround candidates. But that dynamic changed following this summer’s tech sector sell-off, which brought many of the previously high-flying chip stocks back to earth (or at least further away from the firmament).
Weekly Update October 11: In today’s note, we discuss the acceleration—and potential for overcrowding—of the China stock momentum trend, specifically how it relates to our position in Alibaba Group Holding (BABA).
Cabot Cannabis Investor
Monthly Issue July 31: Cannabis is a highly politicized sector because it is extensively regulated.
The political news has been very good for cannabis. But cannabis investors have been slow to recognize this.
A late-July Fox News poll showed that Vice President Kamila Harris has caught up to and surpassed Donald Trump in five key swing states.
Cannabis stocks should have advanced on the news. Not only is Harris a better cannabis advocate than President Joe Biden, she’d obviously be more favorable to the sector than Trump.
Monthly Update October 9: Cannabis now has its highest election-year profile ever.
Both presidential candidates have highlighted their favorable positions on cannabis reform, obviously because voters in all the key swing states favor reform. Cannabis reform appears on the ballot in referenda in several states – most notably Florida.
Cabot Money Club
Monthly Magazine October: Retiring abroad may sound like a dream come true, but it’s a growing reality for more and more Americans. In this month’s issue, we’ll take a look at some of the most popular destinations for expats, the pros and cons of retiring abroad, and how to start finding a job (and a community) if you live internationally. In other words, everything you need to know before you go.
Stock of the Month October 10: The markets have continued to flirt with new highs—pulling back and then moving forward—for the past month.
The Fed’s 50-basis-point rate cut inspired investors, home buyers, and those folks wanting to refinance their homes. The Mortgage Bankers Association reported that refinancing applications rose 20% right after the rate cut!
Ask the Experts
Prime Question for Chris: Capital One Financial (COF): Why the weakness? Thoughts?
Chris: I don’t think there’s any particular reason for the weakness other than that COF had a big run from 132 to 153 in August/September, and it seems like the sellers are coming for stocks with “meat on the bone” right now as the customary October pullback develops. I wouldn’t worry too much about it. COF shares are still well above their August lows and their September lows, and a pattern of higher highs and higher lows is a good trend. The real test will come later this month (October 24), when the company reports earnings. And even if those disappoint … it still has the trump card of the Discover Financial merger out there, and that could be finalized in the next 3-6 months.