Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the market’s continued constructive action that sets up some key things to watch next week -- the intermediate-term trend for the market could turn up, and leading stocks are beginning to tighten up in a good way, possibly presenting some higher-odds entries ahead. Mike reviews names from a variety of areas (including even gold and off-the-bottom names) for you to build your shopping list.
Stocks Discussed: ARGX, ALNY, TGTX, TSM, ANET, ZETA, GVA, TOL, FIX, AEM, GDX, SHOP, UBER
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad briefly touch on Nvidia’s (NVDA) upcoming earnings before diving into the market’s rebound from the late-July/Early-August correction, Powell’s rate announcement in Jackson Hole and the recent jobs revision. Then they debate which electric vehicle stocks might offer some upside now that the “romance” phase is in the past and whether space stocks are the next hot sector on Wall Street.
Cabot Webinar
Boost Your Profits: 4 Experts & Their Top Picks for Fall 2024
Join seasoned Cabot analysts Mike Cintolo, Tyler Laundon, Tom Hutchinson, and Nancy Zambell as they share their wealth of wisdom.
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 August 22: The market’s rebound from the August 5 mini-panic has been unusual—in a good way, with a straight-up advance that’s recouped most of its prior decline, given up very little of its gains along the way, and has been led by a gaggle of growth stocks that have powered ahead on earnings. Now, we’re not totally free and clear here, and some short-term wobbles could easily come; by our measures, the intermediate-term trend is sideways and defensive stocks are percolating, so there’s more work to do. All in all, we’re putting a little more money to work tonight but will still be holding just shy of 40% in cash as we see if the market can further confirm a new uptrend.
Bi-weekly Update August 15: WHAT TO DO NOW: The market’s rebound has been very encouraging, especially when looking at individual growth names—we’re seeing more constructive action now than we were during the narrow advance of June and July, including among all of our holdings. That said, the intermediate-term trend for most everything is still neutral at best (negative for lots of stuff), so the possibility of a partial or full retest still exists. Given our large cash position, we’re going to add half-sized positions tonight in Palantir (PLTR) and Axon Enterprises (AXON), two strong potential leading titles, but we’ll also still hold a 50%-ish cash position as we watch to see how things play out from here. Details below.
Cabot Top Ten Trader
Weekly Issue August 19: The market isn’t totally out of the woods at this point—the intermediate-term trend of most indexes and growth measures is essentially neutral here, there’s plenty of overhead to chew through. That said, there’s no doubt the rebound has been impressive, with some indexes recouping 60% to 80% of their corrections, and individual stocks are acting much peppier of late. What happens from here will be key: Some backing off would be normal, but if any retreat is tame and individual stocks continue to flex their muscles, it would be a good sign—though obviously a huge drop would be iffy. For now, we continue to slowly rebuild exposure but are remaining flexible. We’ll nudge our Market Monitor up to a level 6 but are taking things on a day-to-day basis.
This week’s list is another that’s loaded up with powerful charts, all of which have recently surged on earnings reports. Our Top Pick has been extremely tedious for the past 16 months but is flashing some overwhelming buying power as the sector improves.
Movers & Shakers August 23: After two big support and accumulation weeks, this week has seen more digestion in the major indexes—and, really, we saw the first “real” selling since early August on Thursday, with some heavier-volume selling. Even so, as of this morning, it’s still shaping up to be a positive one, with most indexes up in the 1% range given the pre-market indications, maybe a bit more on the growth side of things.
Cabot Options Trader and Cabot Options Trader Pro
Cabot Options Trader Pro Weekly Update
Cabot Options Trader Weekly Update
Cabot Value Investor
Monthly Issue August 1: Two years after the yield curve inverted, there’s still no U.S. recession in sight. As a result, financials – beaten to a pulp during the double whammy of the 2022 bear market and the March 2023 bank collapse – have become the fastest-growing non-tech sector of the market. It’s also one of the most undervalued. So in this month’s issue, we add a very recognizable big bank that does a little bit of everything – and seems to be everywhere. It’s growing at a healthy clip and yet is cheaper than even the average financial at the moment.
Details inside.
Weekly Update August 22: The success of headliners Walmart and Target in the last week has helped drive consumer staples stocks as a group up nearly 5% in August. No other S&P 500 sector has performed better this month. And yet, consumer staples are “only” up 14% year to date, trailing the gains in the S&P 500 (17.3%).
Thus, the sector as a whole is still undervalued. That spells opportunity.
Cabot Stock of the Week
Weekly Issue August 19: Stocks are rolling again, and the panic that engulfed the market just two weeks ago has vanished, replaced by the longest market winning streak all year. Nearly all our Stock of the Week stocks are up in the past week, several of them by double digits, led by AST SpaceMobile (ASTS) – up more than 80% (!) since we last wrote. So, let’s strike while the iron is hot and add another upstart growth stock to the portfolio in the form of a mid-cap just recommended by Carl Delfeld in his Cabot Explorer advisory.
Details inside.
Cabot Explorer
Bi-weekly Issue August 1: Explorer stocks gained ground this week as market sentiment improved along with the odds of a Fed rate cut this fall.
I’ve been encouraging you to lighten up on some of the Magnificent Seven stocks over the last month or so. In just the last two weeks, these stocks have lost over $1.6 trillion in market value as market enthusiasm has waned and insiders have sold some stock.
What’s behind this trend?
Here are three possible reasons why big tech is facing a tough market.
Bi-weekly Update August 22: Explorer stocks had a good week, but I wanted to highlight that recently, Warren Buffett sold almost 400 million of Apple (AAPL) stock during the second quarter. The Oracle of Omaha sold about 390 million shares of Apple stock, reducing Berkshire Hathaway’s ownership to roughly 400 million shares.
Granted, Berkshire booked some giant investment gains during the second quarter, with Apple accounting for a big share of those winnings. This is nothing to sneeze at, but why did Buffett and company decide to sell the shares, thereby missing out on some big capital gains? Forbes notes that Apple’s average closing price in the second quarter was 186, which is well below the 226 at which the stock closed on August 20.
Cabot Small-Cap Confidential
Monthly Issue August 1: Infrastructure has been a hot topic for the last couple of years given passage of a bipartisan bill to finally spruce up the U.S. and try and address climate change.
This month we’re jumping into a pure-play infrastructure company that owns railroads and deep-water ports supporting crude oil and clean fuel shipments, as well as a modern power plant that’s getting tons of calls from AI data centers.
One thing – the company reports quarterly results after the bell today!
Weekly Update August 22: While the S&P 600 Small Cap ETF (IJR) hasn’t yet challenged its high for the year of 120.7, hit just prior to the market rout a few weeks ago, the index’s performance lately has still been impressive.
For most of this year the IJR bumped up against overhead resistance near 111. It finally blasted through in the second week of July. But that market turbulence from a few weeks ago seemed like it could put a lid on the index for a while.
That hasn’t been the case.
Small caps have come back swiftly, jumping back above that 111 level a week ago and acting very well this past week.
Cabot Dividend Investor
Monthly Issue August 14: The explosive growth of artificial intelligence, electric cars, and manufacturing is causing an explosion in the demand for electricity in this country.
After nearly two decades of stagnant growth, electricity demand is expected to soar in the years ahead. This year alone, electricity demand is growing 81% more than it did last year. Electricity demand is expected to grow at nearly twice the past rate for the rest of this decade.
The new demand transforms certain previously stodgy and boring utility stocks into growth investments.
In this issue I highlight one of the very best and fastest-growing electricity producers in the country. This company is in an ideal position to benefit from the increasing electricity demand from data centers and other sources. AI may be the cutting edge of technological innovation. But it doesn’t work without electricity. While most investors are running around chasing the same AI stocks, we can reap the rewards of the tremendous new opportunity from Thomas Edison’s invention.
Weekly Update August 21: What a difference two weeks make! From the close on Monday, August 7 to the close on Monday, August 14, the S&P 500 was up about 8% and is again flirting with the high.
The market fell a lot from mid-July to early August. But it has since recovered all the losses. While the S&P is back near the high, the last month has been a wild ride to nowhere. Now what?
Cabot Early Opportunities
Monthly Issue July 17: In the July Issue of Cabot Early Opportunities, we continue to lean into the strong market and focus our attention on the small end of the market cap curve.
We have small and mid-cap players in the software, semiconductor, green energy, industrial tech and AdTech spheres, each of which has compelling reasons propelling shares higher.
Cabot Profit Booster
Weekly Issue August 13: Before I dive into this morning’s Cabot Profit Booster covered call idea, I wanted to mention that the Mintz family will be traveling to Europe this Wednesday through the following Wednesday.
That means we will simply let our August positions expire this Friday, and we will not be sending a new trade next week. However, I will address August positions if needed when I return.
Moving on …
Cabot Income Advisor
Monthly Issue July 23: The S&P spent most of the first half of July setting new highs. But that changed last week. The technology sector sold off on news of new AI chip export restrictions to China. The S&P fell about 2% for the week, giving up most of the gains for July. It may be a blip. It probably is. But the market is high, and stocks showed vulnerability to bad headlines.
A flatter or down market going forward makes income more valuable. The cash register continues to ring regardless of short-term market gyrations. At the same time, many income stocks are still cheap, and interest rates are likely to trend lower from here.
Some of the very best income stocks are in the energy sector. After recent price shocks and other problems in the energy sector, investors are coming around to realizing energy is a strong business that isn’t going anywhere for a long time.
In this issue, I highlight one of the best natural gas companies on the market. It is a newly formed company in the business of exporting abundant and cheap American natural gas overseas. It’s big business. In a short time, this company has become one of the world’s biggest natural gas exporters.
Weekly Update August 20: What recession? After a terrible start to August, the market has completely turned around. The S&P 500 has moved 7.5% higher since August 5 and is again near the high.
The recession fears that contributed to the worst day for the market in over a year were overblown. And numbers have come out since that indicate a recession is unlikely any time soon. But the Fed is still expected to start slashing rates next month. It looks like we will still get the rate cuts without a recession. The market loves it.
Cabot Turnaround Letter
Monthly Issue July 31: As I mentioned in my first installment of the Cabot Turnaround Letter, the most valuable lesson I have learned in my professional career as a price forecaster is that the rate of change – of just about any metric – tells us everything we need to know about the immediate future. When the rate of change accelerates, it tends to continue accelerating. When it decelerates, it tends to continue decelerating. And the resulting push and pull is a large part of what comprises the business cycle.
Weekly Update August 23: After two big support and accumulation weeks, this week has seen more digestion in the major indexes—and, really, we saw the first “real” selling since early August on Thursday, with some heavier-volume selling. Even so, as of this morning, it’s still shaping up to be a positive one, with most indexes up in the 1% range given the pre-market indications, maybe a bit more on the growth side of things.
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 August 14: The cannabis sector has a dream ticket with Kamala Harris and Tim Walz. Investors act like they haven’t even noticed. This seems like a big mistake.
The key takeaway: Cannabis stocks look buyable in the current bout of dramatic sector weakness. Cannabis investors are notoriously bipolar. Right now, they are in a dark mood. That’s usually been the best time to add to positions, especially when there are potential catalysts on the horizon like now. In today’s update, I outline the main ones and the possible timing.
Cabot Money Club
Monthly Magazine August: Exchange-traded funds (ETFs) are a popular low-cost alternative to mutual funds that can help investors achieve their diversification goals, gain exposure to asset classes and sector trends they’re interested in, and save money while they do it. This month, we’ll dive into the pros and cons of investing in ETFs, how to identify the funds that match your investing style, and how to evaluate their risks and potential. In short, we’ll explore everything you need to know to make more money investing in ETFs.
Stock of the Month August 8: I have to admit, a couple of weeks ago, on our Cabot Street Check podcast, Chris Preston, host and Chief Analyst for Cabot Value Investor, and I discussed the possibility of a recession and I commented that I thought recession fears were mostly over.
Well, I’m going to reconsider that (a bit) after Monday’s 1,000+ point loss in the Dow. Last week’s jobs reports came in at 114,000 jobs—considerably less than the 185,000 expected—spooking the markets and causing economic gurus to once again bring up the possibility of the dreaded “R” word. Additionally, the unemployment rate edged up to 4.3% and manufacturing and construction spending were also less than expected, furthering economic worries.
Ask the Experts
Prime Question for Mike: Hi Mike. When do you buy stocks? Do you look at chart patterns and then buy only on breakouts? Can you share your buy rules?
Mike: It’s a great question, but I wouldn’t say there are strict criteria – we are looking for stocks that are generally acting well, and yes we will buy names breaking out, especially if it’s on earnings and such. That said, we’ll also buy some tight consolidations or pullbacks if the market advance is a bit long in the tooth.We also use market timing, of course, should the market still be neutral or negative (like now).I would say going ahead, we’re looking for strength given that we’ve finally seen the market correct, and the good news is many growth titles are bouncing well, so if/when the market decisively confirms a new uptrend, we’d think the best stocks will already be at new high ground.