Please ensure Javascript is enabled for purposes of website accessibility
Cabot Prime Pro Logo
Cabot Prime Pro

Weekly Summary February 21, 2020

Cabot Prime Pro Week Ending February 21, 2020

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, Tyler Laundon takes you inside three IPOs from 2019 which have yet to report earnings and which could afford compelling entry points now. All three stocks are past their IPO lockup expiration dates and are delivering huge growth.

CABOT EVENTS:

The 5 Best Stocks to Buy in March

FREE WEBINAR: Wednesday, February 26

By Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader | Space is limited so sign up now for FREE.
SAVE THE DATE

2020 Cabot Wealth Summit - August 19-21, 2020

Click Here for More Information.

Advisory Services

Cabot Growth Investor

Bi-weekly Update February 20: Mike remains mostly bullish, but is keeping it small on the buy side in stocks we feel could be early-ish in their overall moves and have shown great power in recent weeks. So far this week, he’s sold Qorvo (QRVO), bought a half position in Dynatrace (DT), and tonight, he’s going to start a half position in Redfin (RDFN), which will leave us with around 18% in cash.

Special Bulletin February 19: Mike is putting a little cash back to work tonight, buying a half-sized position in Dynatrace (DT), which will leave us with around 23% on the sideline.

Special Bulletin February 18: Most stocks fell, and the selling was fiercest in names that are related to Apple and that have plenty of exposure to China (either via supply chains or demand from Chinese consumers). Qorvo (QRVO), which has been struggling in recent weeks on virus-related fears, was caught up in the selling, closing below our mental stop in the 104-105 area. Sell QRVO.

Bi-weekly Issue February 13: The overall market remains in an uptrend, as do most leading stocks, and that’s why Mike remains mostly bullish. But while he’s positive, he’s not pounding the table, partly because of some secondary measures (most broader indexes haven’t hit new highs in a month) but mostly because individual stocks aren’t offering up many great entry points. Tonight, then, Mike standing pat, happy to ride our winners but monitoring earnings season closely, both for stocks we own and for those we want to buy.

Other Stocks of Interest January 30: Follow ups to stocks featured September 12, 2019 (issue 1428) to January 30, 2020 (issue 1438). Since many of the stocks written about in Other Stocks of Interest don’t make their way into the Model Portfolio, you won’t see them followed on a regular basis in the issues. However, we are monitoring these stocks, and this listing gives you a quick view of our latest thoughts.

Cabot Top Ten Trader

Movers & Shakers February 21: Mike is not going to change his stance based just on a day-plus of selling, but his eyes are wide open given the extended run in the market and the complacency out there among most investors. Interestingly, because of the divergences among major indexes, another 1% to 2% drop could actually turn the intermediate-term trend down. Mike’s buy ideas today are: Dynatrace (DT) and PulteGroup (PHM) and he has four outright sells today: Appian (APPN) and Invitae (NVTA), both of which reacted poorly to earnings, as well as Qorvo (QRVO) and Taiwan Semi (TSM)

Weekly Issue February 18: As always, Mike puts most of his emphasis on the primary evidence, which is why he remains mostly bullish; in fact, he’s nudging our Market Monitor up to a level 7 this week. But, while he still favors holding your strong, resilient performers, he also think it’s best to be choosy on the buy side, looking for names that have shown some recent power on earnings or have been running for a few months but have dipped to support. This week’s list features many of names that have one of those two chart characteristics. Mike’s Top Pick is Redfin (RDFN), which has been mostly a bust since coming public two years ago but showed overwhelming buying after earnings last week.

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 Basic and Pro Trade Alert February 21: Sell Existing Position: Sell the Balance of your Blackstone (BX) March 52.5 Calls for $8.60 or more.

Cabot Options Trader Position Update February 20: Position Update — Zillow (Z) - Jacob likes both of these positions, and is going to continue to hold for the time being, though he may add a mental stop to the Options Traders position in the days to come because it is so price sensitive.

Cabot Options Trader Pro Earnings February 20: Zillow (Z) reported earnings last night that beat expectations. In early pre-market trade the stock is trading higher by $7 at 61.5. This is the near ideal level for our May 50/65 Bull Call Spread … though because we have so much time until May expiration we will have to wait some time before capturing the full $15 per spread profit.

Cabot Options Trader Basic Earnings February 20: Zillow (Z) reported earnings last night that beat expectations. In early pre-market trade the stock is trading higher by $7 at 61.5. At this level, our May 50 call that was originally purchased for $4.38 would be worth $12 approximately, or a potential profit of 170%.

Cabot Options Trader Stocks on Watch February 19: Stocks on Watch today are Expedia (EXPE) and Diamondback Energy (FANG).

Cabot Options Trader Pro Earnings February 19: Zillow (Z) will report earnings today after the market close. Headed into the announcement Z is trading at a new 52-week high at 54. This strong stock action has pushed our May 50/65 Bull Call Spread which was originally purchased for $3.43 to be worth $5.70, or a potential profit of 66%. Because of the strong stock and option activity Jacob is going to take the earnings risk and hold his position through the event.

Cabot Options Trader Basic Earnings February 19: Zillow (Z) will report earnings today after the market close. Headed into the announcement Z is trading at a new 52-week high at 54. This strong stock action has pushed our May 50 Calls which were originally purchased for $4.38 to be worth $8, or a potential profit of 83%. Because of the strong stock and option activity Jacob is going to take the earnings risk and hold his position through the event.

Cabot Options Trader Pro Weekly Update February 18: Jacob has 8 Long positions: BX, IBM, JD, MCHP, PINS, TSM, XOM and Z and 1 Short position: SPY.

Cabot Options Trader Weekly Update February 18: This week’s watch list is made up of a sector of the market that surged higher last week, a holding of the Options Trader portfolio, and two days of put buying in a stock set to report earnings on Wednesday. Jacob highlights these sectors and stocks: Chinese internet stocks, Microchip (MCHP) and Dish Network (DISH).

Cabot Undervalued Stocks Advisor

Special Bulletin February 20: Designer Brands (DBI) shares rose 8% yesterday on reaffirmed 2019 guidance; recommendation raised to Strong Buy, Marathon Petroleum (MPC) shares up today on Speedway buyout talks; recommendation raised to Strong Buy and Mosaic Company (MOS) reported fourth-quarter results; good 2020 outlook.

Weekly Update February 19: The coronavirus continues to make headlines, with this week’s victim being Apple Inc. (AAPL) which announced that 2020 revenues are going to take a hit from the work stoppages emanating from China. Crista has been warning investors that the coronavirus is affecting most industries. Here are today’s portfolio changes: Corteva (CTVA) moves from Hold to Retired, Goldman Sachs Group (GS) moves from Buy to Hold, Mercury General Group (MCY) moves from Hold to Buy, MKS Instruments (MKSI) joins the Growth Portfolio as a Strong Buy and Netflix (NFLX) moves from Hold to Buy.

Monthly Issue February 5: Today’s featured stocks are General Motors (GM), which reported fourth quarter results this morning; Goldman Sachs Group (GS), a new addition to the Growth & Income Portfolio; Equitable Holdings (EQH), which could deliver quick capital gains when they report earnings; and Universal Electronics (UEIC), which gave an informative presentation at the recent Needham Growth Conference. Crista also discuss the coronavirus, which could easily cause stock market turbulence through April, even if the virus dissipates quickly.

Cabot Stock of the Week

Weekly Issue February 18: The market remains in a strong uptrend, shrugging off fears of coronavirus (the worst selling occured nearly a month ago) and instead focusing on earnings reports, which in general are showing great growth. Thus, Tim continues to recommend that you be heavily invested in stocks that will help you meet your investing goals. Today’s recommendation, Equitable Holdings (EQH), has a healthy chart and a great growth story —as well as an earnings report due next week. The stock was originally recommended in Cabot Undervalued Stocks Advisor by Crista Huff. Tim has four portfolio changes today: Axonics (AXNX) moves from Buy to Hold and Disney (DIS), Qorvo (QRVO) and Yeti (YETI) all move to Sell.

Cabot Global Stocks Explorer

Bi-weekly Issue February 20: Carl writes that the Cabot Global Stocks Explorer portfolio is led by our rocketing Virgin Galactic (SPCE), which has zoomed from 11 to 37 in a wink of the eye. Meanwhile, Sea Limited (SE) and Luckin Coffee (LK) were both up 10% this past week even as our emerging markets timer (EEM) moved to neutral. Concerns over the impact of coronavirus are deepening as Apple announced revenue will be below expectations. In this issue, Carl will address these concerns, as well as why and how to hedge them. His featured stock is, ProShares Short FTSE China 50 (YXI) and it’s rated Buy. He has one change today: Rakuten (RKUNY), moves from Hold a Half to Sell.

Bi-weekly Update February 13: Carl’s writes that the markets are demonstrating impressive resiliency in the face of the coronavirus. You can’t fight the market but he remains a bit more guarded since this disruption will have to hit profits down the road for some companies. He has no portfolio changes today.

Cabot Small-Cap Confidential

Weekly Update February 20: Proceed cautiously and try to maintain a steady hand as these stocks swing around. Be conservative on the buy side and if you’ve made any big bets lately on positions that you’re just not feeling comfortable with then go ahead and trim them a little. It’s common for even the most experienced investors to get concerned they’ll miss out on a big move and take on too much exposure. If that rings true, just make a few incremental adjustments to get back in your comfort zone. Tyler has two portfolio changes today: Everbridge (EVBG) and Repligen (RGEN) both Move from Buy to Hold.

Monthly Issue February 6: This month Tyler is going deep into the world of high-speed sensing and communications with an unknown micro-cap stock specializing in fiber optic technologies.This isn’t another of those boom-to-bust components manufacturers that crush it when data centers are expanding and fall apart when capex falls. Rather, Luna Innovations (LUNA) is a company that specializes in fiber optics for industrial, transportation and construction applications, such as in airplanes, vehicles, buildings and space stations.It’s not a low-risk investment. But the potential is huge – if management can execute on its growth plan.

Cabot Dividend Investor

Weekly Update February 19: It is likely that a pullback in the market, as measured by the indexes, is increasingly likely in the near term. But that would be healthy and welcome. And it would set up things better for the rest of the year. Don’t be surprised if things get choppy in the weeks and months ahead. The market can’t just keep going higher forever. Tom writes that the shining stars of this market are technology and safety. Investors love the defensive dividend paying sectors right now, namely REITs, Utilities and Healthcare. And technology stocks continue to boom.

Monthly Issue February 12: In this issue Tom identifies a company that is defensive and high dividend-paying. But, unlike most stocks in that area, it is still reasonably priced. At the same time, Verizon Communications (VZ) has massive exposure to 5G and a huge catalyst for growth. With this company you can play offense and defense at the same time. He has no portfolio changes today.

Cabot Marijuana Investor

Update February 14: Marijuana stocks have been building a meaningful bottom since November—and there are good and bad aspects to that. On the good side, it means that you’ve had the opportunity to buy low—so you can sell high later on, or just hold to build long-term profits. On the bad side, it means that until the sector revives, any money invested in the stocks (in general) will not perform as well as money in sectors that are currently strong. Today, Tim has two portfolio changes: Akerna (KERN) and Planet 13 (PLNHF) both move from Buy to Hold.

Monthly Issue January 29: While most growth-oriented Cabot analysts are now advising an increasing dose of caution as the coronavirus correction develops, Tim is actually going to take some more of the cash that he’s had on the sideline, and put it back in the market by averaging up in three of our best stocks. He’ll increase our investment in Canopy Brands (CGC) by 3%, increase our investment in Cronos (CRON) by 3%, and increase our investment in Curaleaf (CURLF) by 2%. This will reduce our cash position to roughly 12%. Also, Turning Point Brands (TPB) is downgraded to Hold.

Cabot Early Opportunities

Monthly Issue February 19: In this month’s Issue of Cabot Early Opportunities Tyler discusses one simple way to measure how much a given stock will move relative to the market. He also features five stocks, from quite small to larger than we normally go. All have something different going for them. He is tilted toward software names this month, though he rounds things out with another solar name and an emerging biotech opportunity. This month’s Top Pick, Varonis (VRNS), is on the backside of a transition to the SaaS business model

Bonus Report:

3 Cloud Software Stocks to Buy Now

Updated - 1/27/20 - Bonus Report: 3 Canadian Small-Cap Stocks to Buy Now
Bonus Report: Secrets To Early-Stage Stock Profits
Bonus Report:

The 240% Early-Stage Growth Stock

Cabot Profit Booster

Update February 21: Today three of our covered calls will expire. The great news, all three trades will be closed for nice profits! Splunk (SPLK), Floor & Decor (FND) and Fortinet (FTNT).

Update February 20: Floor & Decor (FND) is our next covered call position to report earnings tonight after the close. Headed into the event Jacob writes that our position is in fantastic shape as the stock is trading marginally above our short strike price.

Weekly Issue February 18: Survey Monkey (SVMK): SurveyMonkey has a good, solid story and a stock that appears to finally be kicking into gear after 16 months of post-IPO meandering. The Covered Call Trade—Buy Survey Monkey (SVMK) Stock at 22, Sell to Open April 22.5 Calls (exp. 4/17/2020) for $1, or a Net Price of 21 or less

Frequently Asked Questions Report:

Frequently Asked Questions

Bonus Report:

Best-Kept Hedge Fund Secrets to Explode Your Wealth

Bonus Report:

5 Easy Stock-Picking Secrets That Make it Ridiculously Easy to Profit.

Bonus Report:

The Simple Technique that Brings in 5%-15% Each Month.

Wall Street’s Best Investments

Daily Alert February 21: Alibaba Group Holding Limited (BABA) Internet Wealth Builder

Monthly Issue February 20: Nancy’s Spotlight Stock, Tyson Foods (TSN), is a major protein producer that is benefiting from restructuring, rising meat demand, and the African swine flu that has devastated the Asian pork markets. Her Feature article further explores the company’s markets and acquisitions.

Daily Alert February 20: Kimco Realty Corporation (KIM) The Prudent Speculator
Daily Alert February 19: StoneCo Ltd. (STNE) The Wealth Advisory
Daily Alert February 18: Microsoft Corporation (MSFT) The Investment Letter

Ask the Experts

Cabot Marijuana Investor

Question: The marijuana stocks - which I have been in since the beginning have basically went through the roof and then back - so i would say at one point I was up maybe 30k and now back to 0. I’m still in it but am starting to have trouble believing the sector will do anything. I would have never expected it to tank as bad as it has - that said i’m down to about 7% of my portfolio so it’s not a lot of money but what bothers me is that growth stocks are doing well and that’s my main portfolio (opportunity cost) . I’m not sure if it is really worth it to stay in pot stocks - Give me any insight i read all the publications but may have to let go of this pot dream.

Tim: Thanks for asking. I understand your story. Looking back, we can all see what we should have done better (take more profits at the top, and hold more cash on the way down) but right now we’ve got to look forward and ask what the best course is from here. In this year’s strong bull market, the marijuana stocks have been dead weight—and that may continue longer. But with sentiment on the sector now so terrible, and with the broad market so frothy, the marijuana stocks probably have a better risk/reward profile. Bottom line, I wouldn’t give up on the sector. 7% seems about the right weighting for the marijuana stocks here. Just make sure you’re holding the healthier stocks (the U.S. stocks are looking healthier than the Canadians in general) and selling any that are hitting new lows.

Cabot Options Trader

Question: Hello Jacob: Great call on Z. My experience with earnings, even with bullish price action and call buying has been hit or miss. What are the important determining factors you look at to determine the odds are in your favor to hold through earnings? Thanks as always,

Jacob: Really it comes down to three factors for me. First bullish option activity. Second strong stock action headed into the earnings. And third a healthy market. And in this case all three came together and Z is looking higher by $8 following earnings. That being said, as I always caution, earnings are the great unknown. And even if all of the signals listed above are pointed to higher prices, with earnings you truly never know (but in this case it looks like we will celebrate Z tomorrow)

Premium Reports

Quarterly Cabot Analyst Meeting

The recording of the quarterly Cabot Analyst Meeting from January 15, 2020 is now available for you to listen to at your convenience—click here for access. This quarterly private call with our analysts is one of your exclusive Cabot Prime Pro member benefits.

A Richer Retirement

Special Report This handbook is designed to help you secure a better, longer, richer retirement for yourself by making the most of your savings both before and during retirement.

Guide to Cabot Prime Pro

This Guide to Cabot Prime Pro will help you make the best use of your Prime membership to create a strong personal portfolio.

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

StockCabot Small-Cap ConfidentialCabot Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
ABBVBuy
ACBSee Advisory
ADBEHold
ALXNStrong Buy
AMZNHold
ANFStrong Buy
APHASee Advisory
APPFHold
AREHoldHold
ARNABuy
AVGOBuyStrong Buy
AVLRBuy
AXNXHold
BABABuy
BIPHoldHold 2/3
BKRBuy
BSCLBuy 1/2
BXHold
CCIHold
CDLXHold
CGCSee Advisory
CHCTHold 1/3
CRAKStrong Buy
CRLBFSee Advisory
CRONSee Advisory
CTVARetired
CURLFSee Advisory
CZZBuy 1/2
DAVAHold
DBIHoldStrong Buy
DISSell
DOCUBuy
DOMOHold
DOWBuy
DTBuy 1/2
DXCMBuy
EPDBuy
EQHBuyStrong Buy
EVBGHold
EVERHold 1/2
GESStrong Buy
GMStrong Buy
GRWGSee Advisory
GSHold
GSHDBuy
GTBIFSee Advisory
HCATHold
HTHTHold
IIPRSee AdvisoryBuy
INSPHold
IPHIBuyBuy
KERNSee Advisory
LGIHBuy
LKBuy 1/2Hold
LUNABuy
LXBuy 1/2
MCYBuy
MEXXBuy 1/2
MKSIStrong Buy
MOHold
MODNBuy
MOSHold
MPCStrong Buy
MRVLBuy 1/2
NEEHoldHold 1/2
NFLXBuy
NVCRBuy 1/2
OGISee Advisory
PGXBuy 1/2
PLNHFSee Advisory
PNGAYBuy
PWRHold
QCOMBuy
QRVOSellSell
QTWOBuy
RDFNBuy 1/2
RGENHold
RIOBuy
RKUNYSell
RNGHold
RPDSold
SEBuy 1/2BuyBuy
SFLHold
SPCEBuy a HalfBuy
SSOBuy
STAGHold
TCNNFSee AdvisoryBuy
TDOCBuy
TOTStrong Buy
TPBSee Advisory
TSLAHold
TSNStrong Buy
UEICBuy
VLOBuy
VOYABuy
VRTXBuyBuy
VZBuy
YETISell
YXIBuy
XELHold 2/3