Cabot Prime Pro Week Ending July 30, 2021
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any changes to our recommendations over the previous week. We include this table at the bottom of the Weekly Summary, and provide a link here at the top to the Stock Recommendations Tracker.
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo talks about how he’s still advising clients to go slow and pick their spots, but he’s also seeing more and more to like among growth stocks — more setups, more bullish “markers” and, recently, a few earnings-induced breakouts. The buyers still have a lot to prove, but he’s aiming to increase his line if more breakouts occur. Stocks mentioned include HZNP, WING, CMG, DXCM, TEAM, SNAP, ALGN, DT and LULU.
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue July 29: In our opinion, there are three main things about the market that make it difficult for most investors to succeed. The first is its contrary nature—oftentimes, many of the same qualities that help you succeed in the real world (never give up, look for bargains, etc.) can get you into a lot of trouble in the market. The second is, especially with growth stocks, your portfolio will be skewed, meaning a large chunk of your profits will end up coming from relatively few trades, with the rest basically canceling each other out.
Special Bulletin July 27: After a nice few days, growth stocks (and the market as a whole) are getting walloped today, a sign that the market hasn’t broken free of the endless chop. To be fair, many growth names are still in good shape, but our Cabot Tides remain on the fence and much of the broad market is flopping around at best. In the Model Portfolio, we put some money to work last week, but today we’re going to punt on one of our weaker names—we’re selling our half-sized stake in Progyny (PGNY) and holding the cash. That will leave us with a cash position around 42%.
Bi-weekly Update July 22: The sharp dip and rapid snapback in the market is impressive, especially with many growth stocks showing eye-opening strength. However, the bulls still have a lot to prove—our Cabot Tides are neutral at best, most stocks are still under resistance, plus earnings season will surely have a big impact on things. Even so, we’re going to put some money to work tonight, adding three half-sized positions: One in Asana (ASAN), a new addition; and averaging up in both DocuSign (DOCU) and Floor & Décor (FND). Even with these moves, the Model Portfolio will still be 37% in cash, and we have two names on tight leases that we could dump if the market falls apart.
Cabot Top Ten Trader
Movers & Shakers July 30: The market has had another choppy week, with some big ups and downs, both among the major indexes and individual stocks. As opposed to recent weeks, the big-cap indexes are down after this morning’s open, while some of the broader indexes are up 1% or so.
Weekly Issue July 26: Looking at just the major indexes, things couldn’t be better right now. The S&P 500 and Nasdaq are both at all-time highs, while growth stocks look good for the most part. But a peek below the surface reveals that some crosscurrents still abound. There’s still an above-normal amount of Nasdaq stocks making new 52-week lows, while new highs aren’t as expansive as they could be—especially given the strength of the leading mega-cap names. Mike’s Top Pick is Trane Technologies (TT), an HVAC company benefiting from the return-to-office trend.
Cabot Options Trader and Cabot Options Trader Pro
Note that the current week’s Weekly Update, earnings updates, position updates and stocks on watch are posted on the website in the Market Update section, which is deleted each week.
Cabot Options Trader Pro Trade Alert July 30: Sell Half of Existing Position: Sell Half of your Nike (NKE) January 165/185 Bull Call Spread for $7.80 or more.
Cabot Options Trader Basic Trade Alert July 30: Sell Half of Existing Position: Sell Half of your Nike (NKE) January 165 Calls for $12.90 or more.
Cabot Options Trader Basic & Pro Stocks on Watch July 28: As earnings season rolls on my list of candidates for new positions will dramatically explode in volume. That being said, for now, there are two top candidates, AMD and SNAP.
Cabot Options Trader Basic & Pro Earnings July 27: This week is a monster week of earnings releases from the “big boys” of tech. Here are the expectations of stock movement via the options markets: AAPL - With the stock trading at 146, the options market is pricing in a move of $6 this week, or 140 to the downside and 152 to the upside. GOOG - With the stock trading at 2,735, the options market is pricing in a move of $110 this week, or 2,625 to the downside and 2,845 to the upside.
Cabot Options Trader Basic & Pro Trade Alert July 27: Sell Half of Existing Position: Sell Half of your Boston Scientific (BSX) November 43 Calls for $4.00 or more.
Cabot Options Trader Basic & Pro Earnings July 26: Boston Scientific (BSX) will report earnings tomorrow before the open. Headed into the announcement, BSX stock is trading just short of its 52-week high, and our calls are at a tiny loss. Jacob is going to take the earnings risk and hold his position as the stock looks solid, Goldman Sachs upgraded the stock last week expecting an earnings beat, and option order flow has been bullish, though admittedly not overwhelmingly so.
Cabot Options Trader Pro Weekly Review July 26: Long positions: CLF, KWEB, CSCO, CGC, BSX, NKE. Bearish Positions: SPY
Cabot Options Trader Basic Weekly Review July 26: The bears took control last Monday with the Dow falling 2.1%, the sharpest pullback since October. But the nasty decline was quickly met by the bulls Tuesday as dip buyers stepped back into the market with a vengeance.
Cabot Undervalued Stocks Advisor
Weekly Update July 28: The stock market reached yet another record high on Monday, but it just doesn’t seem the same as earlier records. Investors (and everyone else) is starting to wonder if Covid is now endemic – an inherent component of everyday life. Will cases surge in the winter months and just after holidays instead of going away with a single vaccine cycle? We won’t likely be going back to widespread lockdowns, but previously unfettered socializing and traveling could be restrained, thus suppressing earnings and valuations for many companies.
Monthly Issue July 7: At the mid-point in the year, the investing environment seems to be exceptionally favorable. The U.S. economy is recovering robustly with promises of ongoing strength as the jobs market recovery accelerates and as international economies more fully reopen. Earnings growth for the S&P 500 this year is estimated to be 35%, followed by 21% growth in 2022. Not only are these growth rates exceptionally healthy, but analysts seem to be underestimating the strength. S&P 500 earnings estimates typically decline as a year progresses, but over the past three months, the consensus estimate for 2021 earnings of $191 has been increasing – and by a record amount (+9%).
Cabot Stock of the Week
Weekly Issue July 26: What a difference a week makes! When Tim wrote to you last Monday, stocks were having their worst day since March, and looked primed for a more sustained pullback. Since then, they’ve gone nowhere but up – the S&P 500 is at fresh all-time highs as of this writing. Tim’s featured stock Cisco Systems (CSCO), is a technology giant, selling $50 billion in technology equipment (about 72% of revenues) and related software and services. Its Infrastructure Platforms segment produces routers, switches and other gear that connect and manage corporate, government, telecom and other data and communications networks.
Cabot Explorer
Bi-weekly Update July 29: Chinese stocks were hit this week both on American exchanges and overseas as Chinese regulators ratcheted up the pressure through antitrust and regulatory steps that caught many executives and investors off guard. The Golden Dragon index of Chinese technology stocks fell by 15% in two days before rebounding after regulators tried to reassure markets.
Special Bulletin July 26: Due to escalating regulatory risk by Chinese authorities, please sell Pinduoduo stock. Carl will have more in this Thursday’s update but, in short, the Chinese are exerting their authority on Chinese companies that have used offshore entities to list on U.S. markets. China wants these companies to list in Hong Kong or Shanghai. There may be some trading and arbitrage opportunities developing, but the risk for Pinduoduo is now too high.
Bi-weekly Issue July 22: Now that Blue Origin’s and Virgin Galactic’s successful launches are in the books, Wall Street is assessing the profit potential of space tourism. UBS projects the space tourism business segment to be around $4 billion but the broader space sector to be worth $400 billion, which could grow to $900 billion by 2030. Carl’s new recommendation Pershing Square Holdings (PSHZF), is Bill Ackman’s largest investment vehicle, structured as a closed-ended fund with about $10 billion of net assets. Ackman, a well-known value investor, founded Pershing Square Capital Management in 2004 with $54 million, much of it his own money.
Cabot Small-Cap Confidential
Weekly Update July 29: The U.S. economy is growing more quickly than before the pandemic, both the S&P 500 and S&P 600 are up modestly over the past week and, so far, this earnings season has been a massive improvement over the train wreck of the first-quarter reporting season. There are, of course, a plethora of issues. The GDP numbers represent anything but a normal economy. The Delta variant is sparking concerns over transmission and elevated tempers around mask wearing. And prices are not going down.
Special Bulletin July 27: Repligen (RGEN) reported Q2 results before the bell today that surpassed expectations and has the stock up nicely (6% at mid-day) and bucking the broader market weakness. Revenue was up 86% to $163 million, beating by nearly $19 million, while adjusted EPS of $0.79 rose by 88% and beat by $0.27. Management raised full-year guidance to a range of $625 million to $645 million (up 71% to 76%), well above consensus estimates of $586 million. Adjusted EPS guidance goes to $2.71 – $2.78, way above consensus of $1.71. Gross margins are up a lot, from 57.9% in the year ago quarter to 62% in Q2.
Monthly Issue July 1: Tyler’s new recommendation On24 (ONTF), is a $1.6 billion market cap company that offers a cloud-based digital experience platform to facilitate business-to-business (B2B) sales. Despite its small size, On24 is the leading provider of purpose-built solutions for this market, which is worth roughly $40 billion. Organizations use the platform to deliver interactive webinar experiences, virtual event experiences and multimedia content experiences in either live or on-demand formats.
Cabot Dividend Investor
Weekly Update July 28: A crazy earnings season meets a sideways market. Investors have been looking for a narrative that gains traction. Maybe earnings will provide it. One day the market worries about inflation. The next day it frets about growth. Is inflation or the delta variant a bigger concern? The market can’t decide. The Fed will grapple with this very tug-o-war at this afternoon’s monthly report.
Monthly Issue July 14: Remember income? It used to be so easy. But good yields from traditional investments have gone the way of the eight-track tape. A 10-year Treasury bond pays just 1.4%. A three-year CD pays less than 1%. A 20-year AAA-rated municipal bond pays 1.2%. After taxes and inflation, you don’t even break even. And that’s not to mention the fact that bond prices can plummet if interest rates rise. Tom’s featured stock is Blackrock Enhanced Capital and Income Fund (CII).
Cabot Marijuana Investor
Monthly Issue July 28: Tim remains cautiously optimistic that the sector’s uptrend will resume soon; the stocks have fallen far enough, and the fundamentals of the industry remain terrific. But until we see real strength, there’s no reason to be aggressive. The portfolio is already heavily invested, but not fully, and when we do buy more, it will almost certainly be of the strongest stocks, which today are IIPR, GTBIF and GRWG. For now, the one change he will make today is to sell half our position in TerrAscend (TRSSF) and put it into Innovative Industrial Properties (IIPR).
Weekly Update July 21: Our worst-looking stocks are Canopy Growth (CGC) and HEXO (HEXO). Both are Canadian and investors are still avoiding Canadian marijuana stocks. We have a big long-term profit in CGC, and good reasons to hold long term, but HEXO is our biggest loser—and also our most recent buy, and thus the easiest one to sell. Out it goes.
Cabot Early Opportunities
Monthly Issue July 21: The Fed will need to taper bond purchases at some point and interest rates, at least in a rational market, seem like they can only go up. Yet rates remain low, somewhat confusing the growth vs. value argument (for those that feel a need to go one way or the other). Tyler’s Top Pick Upstart Holdings (UPST), operates a cloud-based artificial intelligence (AI) lending platform that goes beyond simple FICO-based models to better match borrowers and lenders. Upstart-powered banks are better able to identify risk and can generate higher approval rates and experience lower loss rates, while customers enjoy the benefits of a digital-first borrowing experience.
Special Bulletin July 6: Today we’re going to part ways with two positions that we added in May and which we’ll make a little more than 10% on. Both positions were trading higher a couple weeks ago but have lost some momentum recently. Sell WHD and APP.
Cabot Profit Booster
Weekly Issue July 27: The overall market continues to be, well, wobbly. After a 2.1% loss last Monday, the sharpest decline in roughly 10 months, the bulls took charge at the opening bell last Tuesday and have yet to give up. Last week, the S&P 500 climbed 1.92%, the Dow advanced 1.07% and the Nasdaq surged 2.76%. Could the current rally could be sparking a classic case of Fear of Missing Out (FOMO)? There is no doubt it’s been an impressive showing by the bulls of late, but it should be pointed out the recent move has come on progressively weaker volume. Jacob’s new stock recommendation is Snap (SNAP).
Update July 19: On Friday our MRO and SGMS call positions expired worthless, leaving us with only our stock positions. And while Jacob debated selling new calls to lower our cost basis, the market is weak, and these stocks have fallen below our initial stop levels. For that reason, Jacob is going to sell both MRO and SGMS stock positions today, and prepare to move this capital into better ideas.
Cabot Micro-Cap Insider
Weekly Update July 28: Investing in micro-caps is fun because you can invest in growth companies at value prices. When investing in pure “value” stocks, your goal is to buy a dollar for 50 cents. The problem is that the dollar of value can shrink over time to 80 cents or 60 cents, especially if the business is facing secular headwinds. The benefit of investing in “growth” companies is the value of your investment can grow over time. You may be paying 90 cents for a dollar of value, but hopefully over time, the dollar of value will grow to 2 dollars or better yet 10 or 100 dollars (think Amazon or Tesla). With “growth” stocks, it’s not as important to pay a bargain-basement price.
Monthly Issue July 14: Rich’s new recommendation Performant Financial (PFMT) has a fast-growing healthcare business which is being obscured by its declining legacy student loan recovery business. The healthcare business is poised to grow 30%+ for the foreseeable future. Despite its fast growth, the company is trading at a big discount to a competitor which was recently acquired. My price target implies ~61% upside, but longer term, this could be a multi-bagger.
Cabot Income Advisor
Monthly Issue July 28: It’s been a sideways summer market for a while. Sure, the indexes have been making a series of new highs. But the S&P 500 is just 1.2% higher than it was in early May. This week inflation is the worry. Last week growth was the problem. The market can’t seem to make up its mind and nothing seems to get any real traction. Any move higher gets tempered by a pullback. Any significant selloff is followed by a quick recovery. But earnings could change things.
Weekly Update July 21: Stocks had one of the worst days of the year yesterday as investors fear the spreading Delta variant coronavirus strain could hamper growth. The market hasn’t seen ugliness on this scale since October. Indexes had been somewhat flat and bouncing around near the highs as investors weighed the booming economy against inflation fears, a falling 10-year rate and growth concerns after the pandemic recovery. But the growing virus fears hit an otherwise lackadaisical summer market hard.
Cabot Turnaround Letter
Weekly Update July 30: Today’s note includes earnings updates on 12 companies, the podcast and the Catalyst Report. We publish the Catalyst Report on the Friday after each monthly issue of the Cabot Turnaround Letter. There were no changes to any of our ratings this week.
Monthly Issue July 28: It’s been a remarkably strong market, not just since the bottom of the pandemic-driven sell-off a little more than a year ago, but over the past decade. The 10-year annualized total return of the S&P 500 was 14.8% at the end of June, one of the strongest decades in history. Shorter-term gains have been even sharper: the 17.7% annualized return over the past five years, which bridges the pandemic sell-off, is simply stunning. Bruce’s has one buy recommendation: Walgreens Boots Alliance (WBA).
Ask the Experts
Cabot Early Opportunities
Question: I joined your advisory in June. Would you recommend starting to build a portfolio from that time going forward, or adding stocks that were already in the existing advisory and still rated a buy?
Tyler: I would consider both new and older positions. The reality is that in a year or two all the stocks we still have from the current portfolio will seem “old”. But good stocks keep going up! Naturally, you’ll have a different entry point from what the portfolio has on the ones that we have previously added, but I wouldn’t get hung up on that.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from July 14, 2021 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.
Stock Recommendations Tracker
The table below lists all of the stocks held in any Cabot portfolio.
Updated or revised recommendations from the past week are in purple text.
Stocks added to a portfolio are highlighted in green text.
Closed stock positions in the past week are highlighted in red text.
| Stock | Cabot Small-Cap Confidential | Cabot Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|---|
| ABBV | Buy | ||||||
| ACCD | Buy | ||||||
| AGC | Buy | ||||||
| AGNC | Buy | ||||||
| ARCO | Buy | ||||||
| ARNA | Buy | ||||||
| ASAN | Buy | ||||||
| ASML | Buy | ||||||
| AVGO | Buy | Buy | |||||
| AVLR | Buy | ||||||
| AVVIY | Buy | ||||||
| BIP | Buy | Buy | |||||
| BMY | Strong Buy | ||||||
| BSCL | Hold | ||||||
| CBT | Sold | ||||||
| CCHWF | See Advisory | ||||||
| CGC | See Advisory | ||||||
| CII | Buy | ||||||
| CRLBF | See Advisory | ||||||
| CRNC | Buy | ||||||
| CSCO | Buy | Buy | |||||
| CURLF | See Advisory | ||||||
| CVX | Hold | ||||||
| DLR | Hold | ||||||
| DOCU | Buy Another Half | ||||||
| DOW | Hold | ||||||
| DRVN | Buy | ||||||
| DVN | Hold | ||||||
| EPD | Buy | ||||||
| EVBG | Buy | ||||||
| FIVE | Hold | Hold | |||||
| FND | Buy Another Half | Buy | |||||
| FSR | Buy | ||||||
| FVRR | Buy | ||||||
| GM | Hold | Hold | |||||
| GOLD | Buy | ||||||
| GRWG | See Advisory | ||||||
| GTBIF | See Advisory | ||||||
| HUBS | Buy | ||||||
| IIPR | See Advisory | ||||||
| IBM | Buy | ||||||
| INSP | Buy | ||||||
| JUSHF | See Advisory | Hold 2/3 | |||||
| KO | Buy | ||||||
| KRNT | Buy | ||||||
| LLY | Hold 2/3 | ||||||
| MRK | Buy | ||||||
| MRVI | Sold | ||||||
| MRVL | Buy | ||||||
| NEE | Buy | Buy | |||||
| NET | Hold 1/2 | Buy | |||||
| NVCR | Buy | ||||||
| NVDA | Buy | ||||||
| O | Buy | ||||||
| OGN | Buy | ||||||
| OKE | Buy | ||||||
| ONTF | Buy | ||||||
| OTTR | Buy | ||||||
| PDD | Sell | Sell | |||||
| PGNY | Sell | Hold | |||||
| PGX | Hold 1/2 | ||||||
| PLTR | Buy | Sold | |||||
| POAHY | Buy | ||||||
| PRCH | Buy | ||||||
| PSHZF | Buy | ||||||
| QCOM | Buy | ||||||
| QTWO | Buy | ||||||
| RBLX | Sold | ||||||
| RGEN | Buy | ||||||
| RVLV | Hold | ||||||
| SE | Buy 1/2 | Buy | |||||
| SLB | Sold | ||||||
| SPCE | Hold 1/2 | ||||||
| SPT | Hold | ||||||
| SSO | Hold | ||||||
| ST | Buy | Buy | |||||
| STAG | Hold | ||||||
| TAP | Hold | Buy | |||||
| TCNNF | See Advisory | Buy | |||||
| THBRF | Buy | ||||||
| TPB | See Advisory | ||||||
| TRSSF | See Advisory | ||||||
| TSLA | Buy | ||||||
| TSM | Buy 1/2 | ||||||
| USB | Buy | ||||||
| VLO | Buy | ||||||
| VZ | Hold | ||||||
| XEL | Buy |