Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo discusses the very impressive market rebound this week -- while he still sees the major indexes as within a correction/consolidation, he’s focusing on numerous individual stocks from a variety of growth-oriented areas that continue to act well -- including many that pop to new highs as soon as the pressure comes off the market. He’s still going cautiously, but is aiming to accumulation positions in potential fresh leaders as the market builds up strength for its next advance.
Stocks Discussed: APP, SN, NOW, TOL, RKT, Z, CARR, IBKR, KKR, FOUR, TOST, GE, MNDY, HALO, SHOP, DT
Cabot Street Check (Podcast)
This week on Street Check, Chris pays the price for his underperforming Bills before making the case that small-cap stocks will be at all-time highs by the end of the year. Then, he and Brad discuss the last inflation print before the Fed finally begins cutting rates and whether it remains an overhang going forward. They also discuss cash options for investors now that yields are heading lower and how Trump’s stance on Florida’s upcoming cannabis vote has helped spark a rally in marijuana stocks. In the main segment, they welcome on Clif Droke of Cabot Turnaround Letter to discuss turnaround stocks, his favorite sectors, and the upside he sees in gold and silver.
Cabot Webinar
2 Revolutionary Stocks Every Investor Should Own
Join Chris Preston, Chief Analyst of Cabot Stock of the Week and Cabot Value Investor, as he shares his 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 Core 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 September 5: To say it’s been a hectic past few months would be an understatement—following a beautiful advance from November of last year into March, the market has seen a sharp correction in the spring, an extremely narrow rally into July, a mini-crash into early August and then, of course, a steep comeback where many indexes recouped most or all of their losses.
Bi-weekly Update September 12: WHAT TO DO NOW: Remain cautious but stay flexible. From a top-down perspective, the market and growth stocks are basically in the confines of correction/consolidation, though many individual names continue to handle themselves well, with many we own surging to new highs in the past couple of days. Last week, we pruned two names, but tonight we’ll add a half-sized position in Argenx (ARGX), a name that’s been on our watch list and is set up well for higher prices if the market cooperates. Our cash position will now be around 41%.
Cabot Top Ten Trader
Weekly Issue September 9: The overriding question coming into last week was whether, after the V-bottom and strong rally for much of August, the market could keep going or would it fall back into a longer bottom-building process. After last week, it’s looking like stocks need more time to set up, as big investors returned from the long weekend and sold stocks basically every day. Of course, today saw a bounce, and a strong-volume rally with fresh breakouts among potential leaders would be very bullish -- but until we see that, we have to assume the market correction that began in mid July is still ongoing. Long story short, we continue to play things relatively cautiously, sticking with small positions and a chunk of cash on the sideline as we wait for more stocks to emerge on the upside. We’ll leave our Market Monitor at a level 6.
This week’s list has a lot of familiar names that are (or are close to) offering decent entry points. Our Top Pick is a consistent grower with a big story that’s trying to emerge from a three-plus-month rest.
Movers & Shakers September 6: In last week’s update we reviewed the market’s good and bad, and we wrote that “we think the odds strongly favor the next big move being up. But, near-term, there’s still a decent chance that growth and other Top Ten-type names could see more backsliding (or bottom building, if you prefer) before breaking out.” Our Market Monitor has crept up of late but is still at a level 6 (out of 10).
Cabot Value Investor
Monthly Issue September 5: The Fed is on the precipice of cutting interest rates for the first time in years; when that happens, homebuilder stocks tend to benefit first. But that’s not the only reason to be bullish on the sector. Homebuilders have changed the way they do business in recent years to become more like car makers, only with greater upside and higher internal rates of return. With both those short- and long-term winds at their sails, homebuilder stocks are a good – and still undervalued – bet. And today, we add a big name in the space that has the best combination of growth and value.
Enjoy!
Weekly Update September 12: The Magnificent Seven have run into a brick wall in the second half of 2024.
After carrying the market in the first half of the year, and through much of 2023, the seven largest mega-cap tech stocks – Amazon (AMZN), Apple (AAPL), Google (GOOG), Meta (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) – have all seen the air let out of their balloons in the last two and a half months, or longer in some cases. On average, those seven stocks, which comprise roughly 30% of the S&P 500, are down 3.7% since the beginning of July. Not coincidentally, the S&P 500 as a whole is flat, after being up about 15% in the first six months of the year, during which six of the Mag. 7 (TSLA was down) performed even better.
Cabot Dividend Investor
Monthly Issue September 11: We are in the early stages of a new cycle in the market.
The environment is changing from one of high inflation and high interest rates to one of falling inflation and interest rates in a weakening economy. 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.
Interest rates may fall quickly or more slowly depending on whether the economy remains buoyant or slips towards recession. But rates will fall much more significantly than they have in years.
The cycle reversal will create new winners and losers. Certain interest rate-sensitive stocks have been laggards for a long time and have a lot of catching up to do. They are still cheap, high yielding, and now have momentum.
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 September 4: It’s the post-Labor Day market. Investors tend to start paying attention again after the summer. This refocus prompted one of the worst selloffs this year.
Investors were positive about things in the middle of August before they went on vacation and stopped paying attention. The market rode out the rest of the month in the same form. But investors coming back to real life after the summer realized that there might be more to worry about.
Cabot Early Opportunities
Monthly Issue August 21: In the August Issue of Cabot Early Opportunities, we spread things out across both growth and growth & value ideas. We have a number of newly public players in markets ranging from water quality to electronics certification, as well as a couple of AdTech players. Last but not least is a familiar face in the data security market.
Cabot Income Advisor
Monthly Issue 27: New technology is driving huge demand growth in old technology. The growth of artificial intelligence, electric vehicles, and semiconductor manufacturing will generate huge growth in electricity.
After being stagnant for most of the last two decades, electricity demand is soaring. Most of the increasing electricity demand (from data centers, EVs, and chip manufacturing) is coming from climate-conscious technology companies that will likely try to secure carbon-friendly power sources whenever possible.
Companies that can provide low-carbon electricity generation should be the primary beneficiaries of this increasing electricity demand. Opportunity is being created for certain companies that also tend to be very recession-resistant at a time when the economy is slowing.
But there is one utility that stands above all others in terms of the current opportunity. And it is highlighted in this month’s issue.
Weekly Update September 10: That wasn’t a good start to September. The holiday-shortened week was the worst week for the market in two years as recession fears reemerged. Here are the results from last week.
Cabot Turnaround Letter
Monthly Issue August 28: After the tumultuous sell-off in the broad equity market last month, the S&P 500 Index is back to within a few points of its all-time high as of this writing in what has been one of the fastest comebacks in recent memory.
Weekly Update September 13: In today’s note, we discuss the recent news developments concerning Nokia (NOK), Vodaphone (VOD), Janus Henderson Group (JHG), Fidelity National (FIS) and B2GOLD (BTG), with a particular emphasis on the latter due to recent precious metal market strength.
Cabot Money Club
Monthly Magazine September: Despite emphasis on closing the gender wealth gap, women in (and approaching) retirement still face significant challenges. Not only do women live longer than men and thus need to stretch their retirement dollars further, they also have, on average, half the retirement savings and can expect to receive a smaller amount from Social Security. This month, we’ll tackle strategies that everyone can use to build a bigger nest egg, cut down on expenses, and achieve their retirement goals.
Stock of the Month September 12: What a month! Markets have had some pretty wild moves since last month, gyrating with significant volatility, and that looks like it may continue for a while. But that’s okay as the volatility is now serving up some pretty exciting discounted opportunities for investing.
Economically speaking, inflation abated somewhat, with core inflation falling to 3.2% for August, its lowest point in three years. And that sets the stage for an estimated 25 basis point reduction in interest rates when the Federal Reserve meets next week, according to the latest economist polls. The rate gurus now think that we may see a total of three rate cuts before the end of the year.
ASK THE EXPERTS
Prime Question for Mike: I own 10% of Eli Lilly (LLY) with a 35% profit. What is your take on Lilly? It is -7% off the high which seems normal for now. It has had a nice 6-month run. Are there better names out there?
Mike: So, LLY is relatively strong in the sense that it’s above its 50-day line (most indexes aren’t) and is miles off its August low. That said, of course, it has had a huge run and the market is iffy.If it were me, I’d probably use a tight stop for some shares (880-ish, maybe for a third or whatnot), and a looser stop for the rest (more near 800) – if the market does get going, I do think LLY can do well, so I’d be willing to give it a chance. But given the huge run, I wouldn’t be playing around with a good-sized stake if it starts to crack from here, hence the partial selling.Honestly, a lot comes down to how you want to handle things in this position, but that’s just a guideline of what I’d be thinking.