Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo says the market is still in a trading range, and thus he’s still staying close to shore -- but there are more and more encouraging factors out there, including the market’s resiliency in the face of bad news (such as higher than expected inflation) and an earnings season that’s going well. Mike reviews a batch of strong names from all different areas of the market and is aiming to put more money to work should the market move higher from here.
Stocks Discussed: APP, TTWO, BROS, HOOD, AXSM, GILD, CLS, NBIS, TEAM, MNDY, AFRM, SHOP, BABA, FXI
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the hotter-than-expected inflation print, robust earnings reports from a wide range of companies, and the (so far empty) threat of higher tariffs. Then, Producer Madison joins, and the three of them each offer their best pick for the rest of the first half of 2025. For more information on this week’s offer, visit www.cabotwealth.com/street.
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 February 6: The market has been resilient in the face of some bad headline news during the past two weeks, but just about every major index and most stocks and sectors are essentially neutral--the evidence is as mixed as it can be. That’s not a bearish thing, per se, and we’re actually making one small new buy today in a peppy growth stock. But until we see more decisive action among growth titles (possibly as earnings season continues to ramp up), we recommend holding a good amount of cash (45% after our move tonight).
Bi-weekly Update February 13: WHAT TO DO NOW: We continue to stay relatively close to shore as the major indexes remain rangebound and many stocks are hit and miss—but we are impressed given the resilience shown after some worrisome headlines, and earnings season has gone fairly well so far. Today and tonight, we’re making a few small moves: On the sell side, we sold one-third of our AppLovin (APP) stake today and, tonight, will sell half of our On Holding (ONON) position—but we’ll also buy an additional 3% position to Duolingo (DUOL) and start a half-sized stake in DoorDash (DASH). All told, we’ll still have a mid-40% cash position, but we could do more buying if the recent resilience leads to clear buying.
Cabot Top Ten Trader
Weekly Issue February 10: Housekeeping: Seeing as next Monday is Presidents’ Day, your next issue will be Tuesday, February 18.
When we look at the overall evidence, we continue to see more good than bad out there: Most indexes are testing the top end of their ranges; we see more breakouts than breakdowns among growth stocks; earnings season has gone well so far; and all of this has happened as headline uncertainty has crept into the picture. That said, we’re still waiting for buyers to truly step up, as most peppy stocks are still seeing lots of selling on strength and most every index is trending sideways. We’ll leave our Market Monitor at a level 6 for now but could move that meaningfully by week’s end depending on how things go.
All that said there are opportunities out there, and this week’s list has many of them, with a ton of recent earnings winners. Our Top Pick has turned super-strong after earnings as investors look forward to what should be a huge 2025 and 2026.
Movers & Shakers February 14: Housekeeping: As a reminder, with the market closed on Monday, your next issue of Top Ten will come Tuesday evening, February 18. Have a great long weekend.
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It’s been a solid week for the big-cap indexes and many growth measures, most of which are up a couple of percent or a bit more, though the broad market indexes have been mostly quiet, up or down a smidge.
Cabot Options Trader and Cabot Options Trader Pro
Cabot Options Trader Pro Weekly Update
Cabot Options Trader Weekly Update
Cabot Value Investor
Monthly Issue February 6: Less than two years removed from the dual implosions of Silicon Valley Bank and Signature Bank, the U.S. banking industry is thriving again, boosted by a resilient economy, declining inflation, and lower borrowing costs. No sector has reported better earnings growth in the fourth quarter than financials, with banks leading the way. And yet, bank stocks remain cheap. So today, we add a big name in the banking industry to our Growth/Income portfolio – one that’s growing fast, and cheaper than most of its peers. I think it could reach new all-time highs within a matter of months.
Details inside.
Weekly Update February 13: On last Friday’s Cabot Street Check episode, the weekly podcast I co-host with my colleague Brad Simmerman, we welcomed on four different Cabot analysts to help us take the market’s temperature in the midst of an eventful and rather volatile start to 2025. All four of them – Mike Cintolo, Cabot’s Chief Investment Strategist; Jacob Mintz, our options trading expert; Tyler Laundon, our small-cap and early-stage stock expert; and Clif Droke, my fellow value investor who runs the Cabot Turnaround Letter – described themselves as varying degrees of “cautiously bullish.” Given all the headlines of late, that qualifies as a victory.
Cabot Stock of the Week
Weekly Issue February 10: Though the market has been stagnant of late, its resilience in the face of the DeepSeek surprise, a barrage of tariff news and threats, an uncertain interest-rate climate and ongoing geopolitical strife has actually been impressive. It’s clear stocks want to go up, if they can just get a sufficient catalyst. For now, the best earnings season in three years is propping up the market, and breadth has improved from much of the last two years. With that in mind, today we add a small-cap stock that’s a household name. It was a Covid-era darling that fell severely out of favor the last few years. Now, it’s showing signs of a comeback. I recently recommended the stock to my Cabot Value Investor audience. Now, we add the stock to our Stock of the Week portfolio.
Details inside.
Cabot Explorer
Bi-weekly Issue February 13: Centrus Energy (LEU) shares rocketed 40% this past week and have surged 78% so far in 2025 while newcomer American Superconductor’s (AMSC) shares jumped 18% this week.
You may also have noticed that our BYD (BYDDY) recommendation is already up 24% in 2025 and has increased about 80% over the last year. This highlights an important trend in China that is unlikely to reverse.
In China, a consumer preference for multinational brands from everyday items like coffee to luxury markets was clear for decades, boosting the sales and value of companies like LVMH (LVMUY) and Starbucks (SBUX). Since the pandemic, however, preferences have shifted. Which brings us to today’s new recommendation.
Bi-weekly Update February 5: While Nvidia (NVDA) has pulled back more than 20% over the past two weeks, our conservative AI play IBM (IBM) has tacked on 40 points over the same period- hitting an all-time high early this week.
Cloudflare (NET) shares were up again this week and are now up 28% in 2025 to reach 140.
Dutch Bros (BROS) shares rose 8.5% this week and have surged 23% so far in 2025.
Cabot Small-Cap Confidential
Monthly Issue February 6: Today’s new addition is an emerging MedTech company that’s developed a whole-organ therapy system to treat liver-dominant cancers.
These are very difficult-to-treat cancers where survival rates are low. But this company’s system, which was just approved for its first indication last summer, is improving the odds.
It’s an exciting story, both from a treatment and investment perspective.
Weekly Update February 13: Small caps have underperformed since last Thursday with yesterday’s selloff pushing the index to the lowest level since mid-January.
The main culprits are yesterday’s slightly hotter-than-expected CPI report, concerns about tariffs (carveouts expected) and an uptick in bond yields. Yesterday the 10-year yield jumped back to 4.64%, a three-week high.
Cabot Dividend Investor
Monthly Issue February 12: Other stocks are picking up the slack while technology is wobbling. The grossly lopsided performance that dominated this market for so long couldn’t last. And there’s more to the story than just sector rotation. Earnings are catching up.
I’m still bullish on the portfolio AI stocks. But other sectors of the market are overdue for stronger relative performance. These stocks are taking over and likely to post much better relative performance over the course of the year.
Healthcare is perhaps the best of all sectors that aren’t technology. It’s an all-weather industry that offers a very seldom-found combination of safety and growth. Plus, these stocks are poised ahead of the megatrend of the rapidly aging population. Healthcare demand is skyrocketing. And the best stocks should get a great ride.
In this issue, I highlight four healthcare stocks currently in the portfolio. Despite the lopsided bull market returns so far, a couple of these stocks have been among the very best performers. And now they should be poised for a strong run in 2025.
Weekly Update February 5: The market is continuing its bumpy ride higher. Despite a barrage of concerns, 10 of the 11 S&P 500 stocks sectors are higher year to date.
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 February 11: The volatile and sloppy start to 2025 continued last week as the indexes fell hard on Monday, recovered in the middle part of the week, and then lost ground again on Friday. For the week the S&P 500 fell 0.2%, the Dow lost 0.5%, and the Nasdaq declined by 0.5%.
Cabot Income Advisor
Monthly Issue January 28: January was shaping up to be another stellar month for stocks. The S&P 500 closed last week 3.73% higher for the month.
But stocks came crashing down on Monday when a Chinese start-up claimed that its highly popular AI assistant performs equally as well as leading models at much cheaper prices and using far less data. It calls into question the anticipated demand growth for AI.
But the selloff is probably an overreaction. This is the problem with high-flying stocks. Any bad news gets dramatically amplified because euphoria is so easy to disappoint. The AI catalyst is still very real. But it may have gotten ahead of itself. A day like Monday was bound to happen. It also creates opportunity.
In this issue, I highlight one of the best technology stocks on the market. It was riding high for good reasons, rapidly growing profits. Monday’s overreaction prompted the worst selloff of the stock in years. There is likely to be a bounce back and the stock can generate very high-priced calls.
Weekly Update February 11: Stocks continue to move higher despite more tariff news. A 25% tariff was announced over the weekend on all imported steel. But the market is so far taking the news in stride during a good earnings season.
We’ll see what happens with the tariffs. But whatever happens with this latest round, it is most likely that tariff issues will remain at least a background story for most of this year. Meanwhile, stocks are being buoyed by strong earnings.
Cabot Turnaround Letter
Monthly Issue January 29: Lost in the frenzy surrounding all things AI are companies that fall under the “boring but important” category. This includes producers of everyday things we often take for granted but which are nonetheless crucial for the smooth functioning of countless segments of the economy. To be fair, these otherwise “boring” industries quite often provide investors with outsized opportunities for profit due to their under-the-radar nature.
Weekly Update February 14: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Alcoa (AA), American Airlines (AAL), Berkshire Hathaway (BRKB), Sirius XM (SIRI) and SLB Ltd. (SLB).
Overall market liquidity remains ample, yet small-cap stocks have lagged in recent months, suggesting money availability isn’t as profuse as it was last year.
Cabot Cannabis Investor
Monthly Issue January 29: As has been the case for the past decade, the fate of cannabis stocks lies largely in the hands of politicians.
Cannabis companies have been getting solid support from state-level politicians. Forty states now allow sales of medical cannabis.
Sure, they are permitting too many stores, and that is putting downward pressure on pricing. At some point, the market sorts that out. Prices will fall to a point where it is no longer that enticing to bring on new supply, yet companies will have gotten lean enough to produce profits. We are not there yet. But we will get there.
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 February: The use of digital wallets is expanding rapidly across the globe but the U.S. is lagging the rest of the world in adoption. This month, let’s explore everything you need to know about digital wallets—from what they do and how they work to which options are the best for consumers and how they keep your money safe—before they complete their takeover of the payments world.
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: Hi Jacob. First, I want to say thank you for all of the education and recommendations you give on options being part of Cabot’s team. I just joined late last year and have been impressed. I’m still relatively new to options trading so it is nice to follow along and learn from someone with so much confidence.
I wanted to ask a simple question: Some of your daily covered call ideas require a significant outlay of capital (at least for me at this point) to purchase 100 shares of the corresponding stock. Is there any way to execute these trades without that significant an investment? Would something like a bull call spread work in that situation?
Jacob: Thanks for the kind words and I’m glad you are enjoying the service.
In regards to your question, yes, there is a way to execute the covered call ideas (and they are just ideas, not trades we are tracking) via a strategy called a “poor man’s covered call.
“Essentially, you would buy a deep in-the-money call, which would act almost exactly like a stock purchase, but it would cost a fraction of the price of buying the stock, and then sell the at-the-money call.
So based on this mornings idea, here was the trade I noted, and then I will show you how to execute a poor man’s covered call ...
Buy Franklin Resources (BEN) Stock at 22.5, Sell March 22.5 Calls for $0.75
Static Return: 3.44%
Breakeven: 21.75
Covered Call Return (if assigned): 3.44%
Instead of buying the stock at 22.5 and paying $2,250 to buy 100 shares, you could ...
Buy the BEN March 15 calls for $7.50, and then sell the March 22.5 call for $0.75.
So instead of paying $2,250 for the stock, you would pay $750 for the call, which will act exactly like the stock.
Let me know if you have any further questions, or if you want to run a trade idea by me to get your “feet wet.”