Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, small-cap expert Tyler Laundon explains what he’s seeing out there in the market as earnings season grinds on. He touches on what Fed officials said this past week and highlights a potential slowdown in QT as supportive of the market. Tyler flags what he interprets as market anxiety about conservative forward guidance and the noise coming out of Washington. But at the same time there are plenty of names acting well after reporting fantastic reports and meaningful M&A activity. and Tyler runs through a number of these stocks to wrap up the video.
Stocks Discussed: SN AMPL CWAN CELH FIVN PRMB IRTC BKNG U
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss mixed signals from the market, surprising strength in European stocks and whether or not Alibaba (BABA) is the next big thing in AI. Then, they welcome on Nancy Zambell of Cabot Money Club to talk all about investor sentiment, which sectors are showing strength, and the state of the housing market. To learn more about Cabot Money Club, click 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 February 20: The market remains relatively mixed from a top-down perspective, but growth stocks remain a different story -- some still look fine, but the action is very hit or miss, and recently, more have come under pressure, with air pockets appearing all over the place this week. That doesn’t portend doom -- in fact, some things like sentiment are encouraging, and the indexes aren’t in bad shape -- but we’ve pared back this week and will look to reinvest the proceeds once big investors decisively step up to support growth stocks.
Bi-weekly Update February 27: WHAT TO DO NOW: Remain defensive. While there’s a chance the recent selling storm could be the final shakeout of this two-plus-month consolidation, the fact is the intermediate-term evidence (both top-down, and among many growth stocks) is now negative, with a lot of damage done to leaders. We’ve been holding a lot of cash for weeks but have pared back further, selling our remaining AppLovin (APP) stake on a special bulletin yesterday, leaving us with around a 66% cash position in the Model Portfolio. We have no changes tonight but are remaining flexible (buy or sell) for whatever comes next.
Cabot Top Ten Trader
Weekly Issue February 24: While there have been some encouraging signs here and there, the market never could quite kick into gear during the past two months, which didn’t necessarily portend doom but is why we never turned very bullish in recent weeks—and now we’ve seen a sudden rug pull, as leaders have hit air pockets. Now, to this point, the selling has been mostly seen in the growth arena, so there are still many names that are handling themselves just fine. We’re open to this being the final shakeout to a two-month-long grinding period, but as always we’re taking the evidence as it comes: We’ll yank our Market Monitor down to a level 5, though a lot of it comes down to entry points and what stocks you own.
This week’s list is a hodgepodge of names, with some growth, some turnaround and a few others sprinkled in. Our Top Pick is a great short- and long-term growth story that acts well and could be ready to help lead if the market can turn back up.
Movers & Shakers February 28: The selloff in leading stocks that started last week has continued, and now it’s spilled over into the major indexes, as it usually does—most indexes were down 2% or more on the week, including the Nasdaq down 5% and many growth measures off 4%-plus.
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 27: Last Friday on the Cabot Street Check podcast I co-host with my colleague Brad Simmerman, I predicted that a 5% market pullback was forthcoming after a month of stagnation. We’re more than halfway there already: the S&P 500 is 3% off its highs entering Thursday and narrowly halted a four-day losing streak on Wednesday.
My reason for thinking a mini-correction was imminent was simple: a strong fourth-quarter earnings season had been helping to counteract all the bad news (tariffs, escalating inflation, stagnant interest rates, etc.) that’s impacted the market over the past six weeks … and Q4 earnings season is now effectively over. Sprinkle in the fact that the S&P had actually poked its head above new all-time highs just over a week ago, and a pullback of some kind seemed almost inevitable.
Cabot Stock of the Week
Weekly Issue: February 24: After weeks of withstanding a geyser of negative headlines – higher inflation, tariffs, slower interest rate cuts, the DeepSeek impact on AI, etc. – the market finally took on water last Thursday and Friday. Whether that’s the start of a deeper correction, we’ll likely know in the next few days. Even if it is, it’s nothing abnormal. After all, the S&P just touched new all-time highs three trading days ago. A pullback was probably inevitable.
Out of respect for the about-face in U.S. stocks in recent days, however, today we’ll turn our attention to Europe, where stocks have been outperforming their U.S. counterparts by more than 2-to-1 so far this year. Our new addition comes from Spain and is a company that’s been in Carl Delfeld’s Cabot Explorer portfolio for several months.
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 27: I am in Singapore this week as U.S. markets and Explorer recommendations struggle a bit.
I had a chance to visit three Luckin Coffee shops in Singapore. Hard to draw conclusions from this small sample but all three seemed very professional and fully automated with no cash accepted resulting in no lines at all. Spoke with maybe a dozen customers who like the ease of use, variety of flavors, and the price. Several said they also go to Starbucks. One only needs to download the Luckin app to get service which locks in customers to receiving a stream of deals and incentives.
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 27: While the broad market has stabilized a little over the last couple of days we are still very much in a risk-off environment. As we all know, the market hates uncertainty. And we’re getting plenty of it these days.
On again, off again tariff threats are the big story this week with Trump’s latest comments reiterating March 4 as the date for Mexico and Canada tariffs and April 2 as the date for reciprocal tariffs (tariffs that match those levied by other countries on U.S. exports), and an additional 10% tariff on China as of that date.
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 26: Stocks are taking a hit. It was an ugly day last Friday and there was more of the same on Tuesday. Should we expect more?
Cabot Early Opportunities
Monthly Issue February 19: The February 2025 Issue highlights a variety of both new and familiar names across the software, delivery, MedTech, appliance and land management markets.
As always, this Issue should have something for everyone.
Cabot Profit Booster
Weekly Issue February 25: Before we dive into this week’s idea, we need to clean up our February positions that expired on Friday. First off, both our NET and HOOD positions closed for their full profits.
However, RBRK and GH stocks closed below their strike prices, which means the calls we sold expired worthless, and we are left with the stock positions, which we are going to sell today.
Cabot Income Advisor
Monthly Issue February 25: The market is sputtering. While the S&P is still up slightly for the year, it’s at the same level it was three months ago.
After two glorious years of being up over 20%, stocks may be expensive and due for consolidation. While that’s certainly possible, it’s normal and healthy in a bull market. And stocks may not be as expensive as they seem.
This bull market has been driven higher by technology and the artificial intelligence catalyst. Without a handful of large technology companies, the bull market returns so far would be quite lame. But things are changing. There are good reasons to believe the relative returns of the rest of the market should vastly improve.
The rally has broadened out. Other stocks are picking up the slack while technology is wobbling. The grossly lopsided performance couldn’t last. And there’s more to the story than just sector rotation. Earnings are catching up.
The energy sector in particular is likely to benefit from the shared bounty going forward.
There are powerful reasons to believe certain energy stocks will benefit from increasing natural gas demand, more oil and gas drilling, and friendlier regulations. Some of these stocks have pulled back from the highs and offer an attractive entry point. In this issue, I highlight two energy stocks that are likely in a multi-year bull market that historically generate high call premiums.
Weekly Update February 18: The market has been sideways for the past couple of months. It’s up YTD because of a rebound from the December swoon. But the S&P is still at about the same level it was in early December.
Earnings have been solid, averaging about 11% growth in the quarter as tech earnings moderate and the rest of the market catches up. Earnings are expected to average about 14% in 2025. But the solid earnings quarter is only helping the market hold serve in the face of higher interest rate expectations, tariffs, and a strong dollar.
Cabot Turnaround Letter
Monthly Issue February 26: At face value, it’s admittedly a challenge to build a bullish case for the long-term viability of satellite radio. Indeed, as the popularity and reach of digital streaming platforms grow, satellite as a communications medium looks antiquated by comparison.
That said, a case can also be made that reports of satellite radio’s demise are decidedly premature. When researching for this month’s issue of CTL, for instance, I came across an article under the following headline: “Satellite Radio is Dead.” It went on to explain, “Satellite radio will come crashing down to Earth within the next two years. The newly merged Sirius XM Radio is already living on borrowed time—and borrowed money—and simply will not and cannot survive.”
Weekly Update February 28: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Alcoa (AA), Centuri Holdings (CTRI), Janus Henderson Group (JHG), Paramount Global (PARA), Starbucks (SBUX) and Teladoc Health (TDOC).
This month’s catalyst report features a mixed bag of attractive turnaround candidates in several industries, including software, healthcare, luxury retail and chemicals.
Cabot Cannabis Investor
Monthly Issue February 26: Are promises made really promises kept, for President Donald Trump?
No one really knows, so cannabis equity investors remain depressed.
They can’t get any bullish signals from the administration on rescheduling, which Trump promised.
But there is a way to deal with this uncertainty as a cannabis investor. Shift your focus to getting paid to wait. I’ll explain why, and how, below.
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 March: Housing prices remain elevated, rents are up, and mortgage rates are stubbornly high, but the fact of the matter is, life doesn’t wait on the housing market. This month, we’ll explore the options available to homeowners and prospective homebuyers so that they can worry less about higher housing costs and get on with the important business of living life to the fullest.
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 Mike: I am a subscriber to both Growth Investor & Stock of the Week. Based on comments in regular updates I have read from both, what is the general stop loss percentage recommended on a stock and should that order be a mental one or placed as an actual trailing stop order?
Mike: Thanks for writing. So all the advisories do stand on their own two feet, but for Growth Investor, our max loss limit is 20%, but we usually try to cut things closer – so I would say 12% to 15%, depending on the chart and volatility of the stock. We tend to use mental stops for that advisory. Once we have a profit, we don’t necessarily trail with that percentage - we’ll loosen it up and see how things go, but that’s where we start.