Cabot Prime Week Ending July 26, 2019
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, Chief Analyst of Cabot Top Ten Trader and Cabot Growth Investor, remains bullish, highlighting the market’s resiliency, the encouraging start to earnings season and one sector that is seeing many of its components stage longer-term breakouts.
CABOT EVENTS:
Cabot Wealth Summit 2019
7th Annual Conference | Wed-Fri, Aug 14-16 | Salem, Mass.
We’ve added a beginning investors workshop to help you understand the terminology and concepts of investing so you will be better prepared to make more money.The cost of the workshop is $197 but as a Cabot Prime member, once you register for the summit, you can attend the additional workshop for FREE.
Learn More and Reserve Your Place
FREE WEBINAR: Thursday, September 12.
High-Yield Dividend Stocks to Boost Your Income Now
By Tom Hutchinson, Chief Analyst of Cabot Dividend Investor | Space is limited so sign up now for FREE.
Advisory Services
Cabot Growth Investor
Bi-weekly Update July 25: Mike says to remain bullish, but continue to take things on a stock-by-stock basis. Some potholes based on earnings, rotation and news flow are certainly possible, but overall, the bull market is in good shape and most leading stocks act well. In the Model Portfolio tonight, he’s making two moves—he’s adding another half position to Snap (SNAP), which looks like a fresh leader, and he’s starting with a half-sized position (5% of the portfolio’s value) in Elastic (ESTC). Our cash position will now be around 9%.
Bi-weekly Issue July 18: In this issue, Mike says that Cabot’s market timing indicators, the action of leading stocks and the 7.5% Rule—all tell us higher prices are likely in the months ahead. In the Model Portfolio, Mike adds a 4% position to the ProShares Ultra S&P (SSO) stake. Portfolio’s cash position will now be 18%, which Mike is aiming to deploy as some fresh leadership emerges.
Other Stocks of Interest July 24: Follow ups to stocks featured February 28, 2019 (issue 1414) to July 18, 2019 (issue 1424). 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 July 26: Overall, Mike’s thoughts haven’t changed much—intermediate- to longer-term, the outlook remains bright, as the trends of the indexes remain up, the majority of sentiment measures remain tame (there are some signs of complacency, but plenty of signs of hesitancy, too) and background indicators like our 7.5% Rule (flashed in early July) bode well when looking out a few months. His buy ideas this week are: Iqvia (IQV), Mirati Therapeutics (MRTX) and Smartsheet (SMAR). There are two outright sells today—LendingTree (TREE), which imploded on earnings, and Pulte Homes (PHM), which tripped its stop after a poor earnings reaction.
Weekly Issue July 22: As Mike has been writing for a while, you shouldn’t get caught up in the day-to-day gyrations, but taking partial profits when offered and being choosy on the buy side (keeping positions small ahead of earnings, looking for good setups near support) makes sense as the myriad crosscurrents continue. Reflecting the environment, this week’s list produced much more diverse than in recent weeks. His Top Pick is ASML Inc. (ASML), a chip equipment maker that just broke out on earnings from a year-long base.
Cabot Undervalued Stocks Advisor
Special Bulletin July 25: Earnings reports from Alexion Pharmaceuticals (ALXN), CIT Group (CIT), Dow Inc. (DOW), Royal Caribbean Cruises (RCL), Southwest Airlines (LUV) and Total SA (TOT) all report earnings, and Royal Caribbean Cruises (RCL) and Total SA (TOT) each move to Strong Buy.
Weekly Update July 23: Crista remains skeptical that lower interest rates are currently warranted. That unnecessary decision could easily backfire if economic numbers begin to show too much strength. For example, there are reasons to believe that increases in food and energy prices will lead to rising inflation, necessitating higher interest rates in the coming 6-24 months. There is one portfolio change today: Commercials Metals (CMC) moves from Hold to Buy.
Special Bulletin July 22: Delta Air Lines (DAL) is now Retired from the Growth & Income Portfolio; Alaska Air Group (ALK) joins the Buy Low Opportunities Portfolio as a Strong Buy.
Monthly Issue July 2: Crista is revisiting the topic of Baby Boomers and real estate. You won’t want to miss the conversation she had with a retired Boomer. Featured stocks in this Issue are: Voya Financial (VOYA), Corteva Inc. (CTVA) and Designer Brands (DBI). Here are today’s portfolio changes: Alexion Pharmaceuticals (ALXN) moves from Buy to Strong Buy, Corteva (CTVA) moves from Hold to Buy, Delta Air Lines (DAL) moves from Strong Buy to Buy, Designer Brands (DBI) moves from Buy to Strong Buy, DuPont de neMours (DD) moves from Hold to Sell, Sanmina (SANM) moves from Hold to Buy and Supernus Pharmaceuticals (SUPN) moves from Hold to Buy.
Cabot Stock of the Week
Weekly Issue July 23: The market remains in fine health, with most indexes very close to their recent highs and all our momentum indicators remaining positive. There’s been some rotation going on lately, as market leadership changes, but that’s normal, and overall, Tim can’t say that sentiment is high enough to worry about yet, either. Thus he continues to recommend that you be heavily invested in a diversified portfolio of stocks that fit you needs. Today’s pick is Alaska Air Group (ALK), recommended by Crista Huff in Cabot Undervalued Stocks Advisor. There are two changes in the portfolio this week: Delta Air Lines (DAL) moves from Hold to Sell and Sunrun (RUN) from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Issue July 25: Our emerging market signal stays in positive territory as Luckin Coffee (LK), Sea Limited (SE) and NIO (NIO) are all advancing nicely. With our new global mandate in place, Carl moves beyond emerging markets to a European quality play on technology. He also explores what the new Fortune Global 500 rankings can tell us about the changing landscape of investment opportunities. Today’s recommendation is Infineon Technologies (IFNNY) a leading broad-based European chipmaker with exposure to secular growth drivers in the industrial and automotive chip sectors. It’s rated Buy a Half.
Bi-weekly Update July 18: Carl says that the emerging markets (EEM) signal continues to be positive and right on top of its 20-day moving average as China and other emerging markets are bumping along and lacking a decisive uptrend. The US-China economic conflict no doubt is a significant headwind that is impacting markets as well as raising uncertainty. But it is important to keep in mind that the fundamentals that attract us to emerging and some international markets are still in place. The US-China rivalry will put competition for resources at center stage and this will bring companies in South America, Canada and Australia to Carl’s attention. There are no portfolio changes this week.
Cabot Dividend Investor
Weekly Update July 24: Tom says, overall, this earnings season is shaping up to be positive but uninspired. S&P 500 profits are likely to grow, but not by much. It seems like a logical breather after the torrid earnings growth of last year from the effects of the tax cuts. There is one rating change this week. NYC utility Consolidated Edison (ED) is being sold from the portfolio.
Monthly Issue June 26: In this issue, Tom highlights Valero Energy (VLO), a stock that is cheap in an expensive market that has a great chance of moving higher in the quarters ahead. There are two rating changes this week. Pharmaceutical company AbbVie (ABBV) is reduced from a BUY to a HOLD as the market digests its purchase of Allergan (AGN). Also, spice maker McCormick and Company (MKC) is lowered from a HOLD to SELL HALF ahead of tomorrow’s earnings announcement.
Cabot Marijuana Investor
Monthly Issue July 25: The cannabis sector remains in a correction, with both marijuana and CBD stocks trending lower, giving up some of their early-year gains—and perhaps building a bottom here. In the meantime, more and more peripheral companies are getting in on the action, and Tim has been increasing our exposure to these in recent weeks while still holding substantial cash. This week he’s selling one more of the pure-play marijuana companies, HEXO (HEXO) raising the portfolio’s cash level to about 27%.
Update July 18: Last week Tim discussed the possibility that the sector might be bottoming, after a downturn that has erased nearly all the index’s gains of 2019, and today his position hasn’t changed. The portfolio has survived the downturn pretty well by being underweight in those old leaders, by diversifying into peripheral companies that are less marijuana-centric and by holding cash. Today Tim is adding two new stocks to the portfolio—Alcanna (LQSIF) and Charlotte’s Web (CWBHF). Additionally, he is selling Green Thumb Industries (GTBIF).
Wall Street’s Best Investments
Daily Alert July 26: Renaissance IPO ETF (IPO) Ian Wyatt’s Million Dollar Portfolio
Daily Alert July 25: Casino concern Eldorado Resorts, Inc (ERI) Schaeffer’s Investment Research
Daily Alert July 24: Stoneridge, Inc. (SRI) Positive Patterns
Daily Alert July 23: MakeMyTrip Limited (MMYT) Cabot Global Stocks Explorer
Daily Alert July 22: D.R. Horton, Inc. (DHI) Validea Hot List Newsletter
Monthly Issue—Top Picks Mid-Year Update July 10: Our Top Picks mid-year update is here! Nancy writes that it’s been a great year for the markets, with gains of 14.8% on the Dow Jones Industrial Average, 18.9% on the S&P 500 and 22.7% on the NASDAQ. But our contributors beat those numbers by a mile! Nancy gives us a selection of mid-year updates, as well as a collection of new ideas for our review.
Wall Streets Best Dividend Stocks
Daily Alert July 26: CIT Group Inc. (CIT) Cabot Undervalued Stocks Advisor
Daily Alert July 25: Vanguard Wellesley Income Fund Investor Shares (VWINX) Dow Theory Forecasts
Daily Alert July 24: Dominion Energy, Inc. (D) Conrad’s Utility Investor
Daily Alert July 23: CareTrust REIT, Inc. (CTRE) Forecasts & Strategies
Daily Alert July 22: Corteva, Inc. (CTVA) DRIP Investor
Daily Alert July 22: Sell: Thor Industries, Inc. (THO) Validea Hot List Newsletter
Monthly Issue—Top Picks Mid-Year Update July 3: Nancy writes that it was a great month for the markets, with the Dow Jones Industrial Average gaining more than 1,400 points. The economy remains sound; housing prices have mitigated somewhat; unemployment is healthy; and consumers are still confident. This month’s issue is jam-packed with lots of Top Picks updates, as well as several new ideas for you. Nancy begins with Top Picks Growth & Income, where you’ll find updates on an internet company and a utility. Next, Top Picks Value includes updates on a delivery service and a Spanish bank. In Top Picks REITs, she offers updates on a health care and a marijuana REIT.
Ask the Experts
Cabot Marijuana Investor
Question:I am a subscriber of your cannabis advisory service at present. I read someone among Cabot’s analysts wrote somewhere to look at ' if funds are buying’ the stock they recommend. I checked Investor’s Business Daily parameter of funds buying or selling of the stocks recommended in cannabis list. My question is if I should buy all the stocks or preferably those being bought by the funds for higher performance. If not, why not? Thank you
Tim: Growing fund ownership of a stock is one sign of increasing perception, but not among the leading tools I use, particularly in the cannabis sector, which is young, has thinly traded stocks, and different legal conditions in Canada and the U.S. So yes, it’s one factor worth considering, but in my methodology it’s trumped by the price chart—which is king of all—the story (I like a diversified portfolio), growth and valuation. Lastly, I’d caution you to start slowly. The cannabis sector is currently in a downtrend, and while you might be lucky to buy the bottom, your odds will be better if you delay most of your buying until the bottom has passed.
Premium Reports
Cabot Prime Quarterly Report
Special ReportJuly, 2019: After a straight-up first quarter, the second quarter was a good one, though proved far trickier. April was solid, though we saw the broad market stall out. May brought a very sharp correction (10% on the Nasdaq!). And then June was a big winner, with the major indexes and many leading stocks ripping back to their highs. Despite the ongoing worries and uncertainties in the world (U.S.-China trade, what the Fed will do, Iran, politics, you name it), you should listen to the message of the market—and that message remains bullish.
Cabot’s 10 Best REIT’s to Buy Now
Special ReportMay 2, 2019: REITs are a way for investors to have a diversified portfolio of real estate-related investments even if you don’t have millions of dollars, much like mutual funds did for stocks. And REITs are traded on the market, just like stocks. In this new, exclusive report, you’ll discover how to profit in REITs, even when interest rates are rising.
Cabot’s Ten Best Canadian Small-Cap Stocks
Special ReportUpdated March 6, 2019: One of the generally accepted wisdoms over the past couple of years has been that the U.S. stock market is where the action is. But relative performance of ex-U.S. markets is showing that’s no longer the case. There are market-beating returns available to those investors willing to step abroad. And one of the easiest steps to take is just over the border with our neighbor to the north, Canada. For the modestly adventurous investor, I think there are quite a few Canadian stocks worth a look right now.
Cabot’s Best Safe Investments for Uncertain Times
Special ReportDecember 21: This report gives you some suggestions of the safest, productive places to put your money when the market gets bumpy.
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
This Guide to Cabot Prime 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.
| Stock | Cabot Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|
| AAPL | Hold | Strong Buy | ||||
| ABBV | Hold | |||||
| ACB | See Advisory | |||||
| ADBE | Buy | |||||
| ALK | Buy | Strong Buy | ||||
| ALXN | Strong Buy | |||||
| ANF | Buy | |||||
| APHA | See Advisory | |||||
| AXP | Hold 1/2 | |||||
| BABA | Buy | |||||
| BHGE | Strong Buy | |||||
| BIP | Buy | Buy | ||||
| BSCJ | Buy 1/2 | |||||
| BSCL | Buy 1/2 | |||||
| BX | Buy | Buy | ||||
| C | Strong Buy | |||||
| CCI | Buy | |||||
| CF | Strong Buy | |||||
| CG | Strong Buy | |||||
| CGC | See Advisory | |||||
| CHCT | Hold | |||||
| CIT | Buy | Strong Buy | ||||
| CMC | Buy | |||||
| CMG | Buy | |||||
| COUP | Buy | |||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CURLF | See Advisory | |||||
| CVTA | Buy | |||||
| CWBHF | See Advisory | |||||
| DAL | Sell | Retired | ||||
| DBI | Strong Buy | |||||
| DOW | Strong Buy | |||||
| ED | Sell | |||||
| ELLXF | See Advisory | |||||
| EPD | Buy | |||||
| ESTC | Buy 1/2 | |||||
| EVBG | Hold | |||||
| EXAS | Hold | |||||
| GES | Strong Buy | |||||
| HEXO | See Advisory | |||||
| HTHT | Hold | |||||
| IBN | Buy 1/2 | |||||
| IFNNY | Buy 1/2 | |||||
| IIPR | See Advisory | |||||
| KSHB | See Advisory | |||||
| LGORF | Buy 1/2 | |||||
| LK | Buy 1/2 | Buy | ||||
| LQSIF | See Advisory | |||||
| LUV | Buy | |||||
| LX | Buy | |||||
| MKC | Hold 1/2 | |||||
| MMNFF | See Advisory | |||||
| MMYT | Buy 1/2 | Buy | ||||
| MO | Hold | |||||
| MOS | Buy | |||||
| MPC | Buy | |||||
| MTCH | Hold | |||||
| NEE | Hold | Hold | ||||
| NIO | Buy a Small Position | |||||
| OGI | See Advisory | |||||
| OKTA | Buy | |||||
| PGX | Buy 1/2 | |||||
| PLNT | Hold 1/2 | Hold | ||||
| RCL | Strong Buy | |||||
| REMX | Buy 1/2 | |||||
| RUN | Hold | |||||
| SANM | Buy | |||||
| SE | Buy 1/2 | |||||
| SLB | Buy | |||||
| SNAP | Buy Another 1/2 | Buy | ||||
| SSO | Buy | |||||
| STAG | Hold | Hold | ||||
| SUPN | Buy | |||||
| SYF | Strong Buy | |||||
| TCEHY | Buy 1/2 | |||||
| TIVO | Hold | |||||
| TOT | Strong Buy | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TTD | Sold | |||||
| TWLO | Buy | Buy | ||||
| UEIC | Strong Buy | |||||
| VFF | See Advisory | |||||
| VLO | Buy | Buy | ||||
| VOYA | Buy | Strong Buy | ||||
| XEL | Hold 2/3 | |||||
| Z | Buy 1/2 | Buy | ||||
| ZTO | Buy 1/2 |