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CABOT EVENTS

Cabot Weekly Review (Video)

In this week’s video, Mike Cintolo talks about the very encouraging market rally, which has prompted him to put some money to work ... though he’s not cannonballing into the pool quite yet, as many stocks are still battling with some resistance and earnings season is in full swing. Overall, though, he is optimistic and spends some time looking at the market, various intriguing ETFs and a bunch of leading stocks in different areas that are in pole position to be leaders of the advance.

Stocks Discussed: PLTR, AXON, CEG, VST, AVGO, MRVL, CRDO, CIEN, TSM, EQT, AR, C, GS, HWM, CRS, PODD, CORT

Cabot Street Check (Podcast)

This week on Street Check, the bull market is back! Chris and Brad discuss the strong market breakout to start 2025, impressive growth at Netflix (NFLX) that pushed shares to fresh all-time highs, and earnings results from airlines that may signal another leg up for the sector. Then, they welcome on Mike Larson, Editor-in-Chief of MoneyShow, to share his perspective on the bull market, sector trends, and why investors should “Be Bold.” You can access the MoneyShow 2025 Top Picks Report here.

Cabot Webinar

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 Pro 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 January 23: After a rough few weeks, the market’s recent rally has been welcome, improving the overall evidence ... though not quite yet in a decisive manner, as the intermediate-term trend is mostly neutral (those close to a buy signal) and many stocks are still toying with resistance. That’s descriptive and not predictive, though, so we did do some buying today, though we’re starting small and will look to build if the buyers stay at it.

Tonight’s issue talks about all of our market thoughts and goes over all of our stocks (including some long-time holdings that are perking up), as well as reviewing a couple of industry groups that are showing intriguing strength after tough down periods.

Bi-weekly Update January 16: WHAT TO DO NOW: Remain cautious but stay alert. The five-week drubbing for the broad market and many growth titles has caused sentiment to really drop (a good thing), and this week’s bounce (as interest rates dipped) is intriguing … but at this point, we’ve seen one decent day of action after five tough weeks, so we’ll stand pat with our large (60%-ish) cash position and watch closely to see how this rally develops.

Cabot Top Ten Trader

Weekly Issue January 21: January is living up to its volatile reputation but there’s no doubt it’s begun to improve—the intermediate-term trend, which was negative for most everything out there, is back to neutral; the broad market is showing some rapid, intriguing improvement; and individual stocks have improved their standing, with some popping to new highs. To be clear, this isn’t a buying panic, but after a few weeks of tedious action that has brought sentiment down, we’re OK with gradually extending your line while remaining nimble. We’ll up our Market Monitor to a level 7 today.

This week’s list is a mixed bag, with everything from growth to turnarounds to commodity names. Our Top Pick looks like one of the leaders of a new group move after being in the doghouse for a couple of years. Try to get in on dips.

Movers & Shakers January 24: It’s been another solid, encouraging week for the market, with the major indexes all sporting solid gains—the big-cap indexes were up 2% or while the broader indexes are in the black by a bit more than 1%.

Cabot Options Trader and Cabot Options Trader Pro

Cabot Options Trader Pro Weekly Update

Cabot Options Trader Weekly Update

Cabot Value Investor

Monthly Issue January 8: California is burning and the rest of the country is in a deep freeze. It seems like a metaphor for the mixed messages we’ve been getting from the market in recent weeks, with stocks running very hot and cold since the start of December as the major indexes have mostly held near their highs but the under-the-surface action has been wobbly at best. The last six weeks have been rough on small caps in particular. As both a value investor and a contrarian, that spells opportunity!

So today, we add one of the highest-profile, more beaten-down small-cap stocks out there to our Buy Low Opportunities Portfolio. The stock is miles from its Covid-era highs, but it’s starting to build momentum for the first time in years: shares have tripled since bottoming five months ago. And it’s a name virtually everyone knows.

Details inside.

Weekly Update January 23: What a difference a week makes!

Early last week, things were looking pretty gloomy for the market, with stocks on a six-week losing streak dating back to early December and interest rates, as measured by the 10-year Treasury yield, stretching to 14-month highs. More than 300 stocks on the New York Stock Exchange and Nasdaq were trading at 52-week lows.

Cabot Stock of the Week

Weekly Issue :January 21: Stocks are finally showing signs of life. After a miserable six-week stretch, stocks – with an assist from cooler inflation numbers – appear to be getting in gear. How long the new rally will last may depend on things like Q4 earnings, the early days of Donald Trump’s second term, and what Jerome Powell says next week. But for now, let’s strike while the iron is hot, or at least warm, and add a growth stock whose name you might recognize since so many people use their platform these days. It’s a new recommendation from Cabot Early Opportunities Chief Analyst Tyler Laundon.

Details inside.

Cabot Explorer

Bi-weekly Issue January 16: In theory, and often as we prefer, in practice, corporate profits drive stock prices.

J.P. Morgan’s (JPM) booming profits are a testament to this, but what’s behind the profits?

It seems that recently, and perhaps even more in 2025, macro issues will drive the direction of markets and sector trends.

Identifying trends and allocating money to the right sectors and picking the leaders in these sectors is increasingly important. Those that follow the Fed and try to predict the direction of interest rates are one example of this macro-oriented strategy.

Bi-weekly Update January 23: The Trump Administration is off and running along with Cabot Explorer stocks as markets closely watch the potential for tariffs on Canada, China, and Mexico.

Mexico and Canada are America’s two largest trade partners, and both countries are bracing for major economic disruption should Trump follow through. Mexico and Canada send about 80% of their exports to the U.S. Market turbulence in stocks based in Mexico or Canada could create an opportunity for us.

Cabot Small-Cap Confidential

Monthly Issue January 8: Editorial Note: With the market closed tomorrow, January 9, we’ve bumped up this week’s Issue to today.

At the end of 2024, we were in a “buy now to win tomorrow” type market. Now, we’re in more of a “buy now to win in the coming quarters” type market.

Given this backdrop, our first portfolio addition of the year is a lower-risk, high-quality software company specializing in digital banking solutions. It’s the fastest grower in its space and is on pace to deliver its first full-year profit in 2025.

Like a lot of stocks in both the software and financial arenas, shares of this company have been a little weak lately. I think that’s good – we can step in at a price modestly lower than just a few weeks ago.

Weekly Update January 23: The market has been singing a more bullish tune lately and small caps are back in the headlines.

That’s because small caps enjoyed a nice rally after last week’s CPI and PPI data came out and the 10-year yield retreated.

Market observers have seen that the market rally has been broadening beyond just the Magnificent 7 and that small and mid-caps (SMIDcaps) have been getting in on the action as well.

Cabot Dividend Investor

Monthly Issue January 8: While the outlook for 2025 is positive, things are changing.

Sure, this bull market has driven the S&P 500 nearly 70% higher. But most of the gains are from technology stocks. Until this past summer, nearly all the bull market returns were driven by technology. The rest of the market had done very little.

But the rest of the market is waking up. While artificial intelligence (AI) will likely continue to be a powerful growth catalyst, its dominance over everything else might not be as pronounced in 2025 as it has been in the past. Earnings for other stocks are catching up.

The earning growth difference between the “Magnificent 7” companies and the other 493 S&P 500 companies is expected to plummet from 27.8% last year to 8.3% this year. The rest of the market is cheap, has momentum, and will likely get hot this year as stocks experience an earnings growth spike that could last for years.

In this issue, I highlight a healthcare stock that looks highly promising in 2025. It is poised in front of the aging population megatrend, which makes a successful pick so much easier, and it will likely experience a sizable earning spike in the years ahead. It is an existing portfolio stock of which half the shares were sold last year. It’s a great time to buy back the other half.

Weekly Update January 22: While the market news is inundated with Trump stories as he has issued a massive number of executive orders on his first day in office, the real market catalyst right now actually started last week.

There were a slew of executive orders affecting the energy industry but no real surprises. The improving story remains essentially the same since the election. There was likely some relief that large tariffs have not been announced, at least so far. But the Trump news is overshadowing last week’s market-altering news.

Cabot Early Opportunities

Monthly Issue January 15: Our first Issue of 2025 highlights a variety of solid growth names that have been acting well despite the recent dip in the market. As always, this Issue should have something for everyone.

Cabot Profit Booster

Weekly Issue January 22: Before we dive into this week’s idea, let’s clean up some of our January positions, with the headliner being things all worked out well.

Cabot Income Advisor

Monthly Issue December 17: By most measures, 2025 looks pretty good for stocks.

The Fed has begun a rate-cutting cycle that should last for the next two years. Historically, stocks do well when the Fed is cutting rates and there is no recession. And the economy has been solid. This bull market is just 25 months old and has returned 65%. Bull markets usually don’t just run out of gas after two years. In fact, the average bull market has lasted 50 months and returned 152%.

But stocks are expensive. The S&P currently sells at 22.3 times forward earnings compared to an average of 16 times over the last twenty years. The market returned 26% in 2023 and about 28% this year with two weeks to go. It might be tough for stocks to deliver another consecutive year of 20%-plus returns.

It may be that a lot of the easy upside is behind us. Stocks can still perform well, but they’ll probably have to earn it in 2025.

In this issue, I highlight a stock that is poised for a strong earnings rebound in 2025. It is a stock that bounces a lot between the highs and lows. And it is currently well below the high. It is also one of the best healthcare companies on the market at a time when the population is older than ever before and aging at warp speed.

Weekly Update January 21: A week ago, the market was teetering on the brink. But it teetered in the right direction.

The benchmark ten-year Treasury rate had soared above 4.8%, dangerously close to the late 2023 peak of about 5%. December CPI inflation was reported last week. A bad number could have thrust the 10-year rate above the peak, almost certainly prompting a selloff in stocks. But Wall Street was happy with the number and things went the other way.

Cabot Turnaround Letter

Monthly Issue December 18: Many are surprised to learn that the concept of telehealth wasn’t a direct result of the Covid pandemic in 2020. Indeed, the practice of online consultations between patients and medical personnel has been practiced for over 20 years, and this month’s featured company is arguably the first one to bring it to global prominence.

Weekly Update January 24: In today’s note, we discuss pertinent developments and ratings changes for some of the stocks in the portfolio, including Agnico Eagle Mines (AEM), Alcoa (AA), American Airlines (AAL), GE Aerospace (GE), SLB Ltd. (SLB) and UiPath (PATH).

Projected strength in U.S. commercial loan growth and continued increases in M2 money supply bode well for the stock market’s liquidity backdrop.

Cabot Cannabis Investor

Monthly Issue December 24: Cannabis stocks are set to close out the year with a punishing 14% decline. Cannabis investors need help from anywhere they can get it.

It looks like it could come from an unusual place in 2025. The future of the cannabis industry is now in the hands of President-elect Donald Trump.

If anyone told me a few years ago this would be the case, I might have asked them what they are smoking.

However, the reality is that during his presidential campaign, Trump endorsed all three of the main reforms that would legitimize the industry and boost cannabis share prices: Rescheduling, bank reform known as SAFER banking, and legalization of recreational use. Trump endorsed the first two outright. He implicitly endorsed legal rec-use because he supported the Florida referendum which would have made this change. At the very least, he has openly endorsed decriminalization.

Monthly Update January 8: Here are my top eight predictions for the cannabis sector for 2025.

1. Cannabis rescheduling goes through

Promises made, promises kept. Trump loves a “deep state” challenge. Put these two together, and it seems probable that rescheduling could happen in 2025.

Cabot Money Club

Monthly Magazine January: Inflation is still a problem for many Americans, and it feels unavoidable when it shows up every day at the dining room table. We may not be able to control the price of goods, but this month we’re fighting back against inflation by spending smarter with nine tips that can help keep inflation from busting your budget.

Stock of the Month January 10: Welcome to our 2025 TOP PICKS issue! Our Cabot analysts have kindly shared their top stock ideas for this year. And you’ll find that they include a variety of companies that should be attractive to investors of all styles—growth, value, dividend payers, and companies on the cusp of turning around—as well as small, mid, and large-cap stocks. I hope you’ll find one or more to your liking!

But first, let’s take a look at the economy and the markets and talk about what’s in store for this year.

Ask the Experts

Prime Question for Jacob: Do you usually sell in 1/3 increments with your options trades? If so, for future buys I will do 3 instead of 2 contracts.

Jacob: I don’t think of each trade in number of contracts, but instead in terms of capital at risk.So if I’m going to risk $5,000 (just an example) in each trade, it could be 3 contracts for an expensive option, or 100 in the case of an inexpensive option.

But yes, typically I sell a third, sell a second third, and then exit the position entirely.