chris-preston

Chris Preston

Editor in Chief and Chief Analyst of Cabot Stock of the Week and Cabot Value Investor

Chris Preston is Cabot Wealth Network’s Vice President of Content and Chief Analyst of Cabot Stock of the Week and Cabot Value Investor .

Chris joined Cabot in 2015, where he previously served as staff analyst, web editor, and Chief Analyst of Cabot Wealth Daily, our free investment advisory, which in 2019 was named “Best Financial/Investing Newsletter or Ezine” at the SIPA (Specialized Information Publishers Association) Awards, with Chris at the helm.

Prior to joining Cabot, Chris was an analyst and assistant managing editor with Wyatt Investment Research. He has been an investment analyst for more than a decade and a professional writer/editor for nearly 20 years, picking up multiple writing awards along the way. His bylines have appeared in Forbes, The Money Show, Time Magazine, U.S. News and World Report and ESPN.com.

Chris lives in Vermont with his wife, two young kids and their golden retriever, Scout. He occasionally sleeps.

From this author

Cabot Stock of the Week

Cabot Stock of the Week Issue: October 7, 2024

Spooky season is upon us! Yes, the usual October selling has commenced, although it’s been fairly mild thus far. But things feel unsettled, what with the expanding war in the Middle East, a toss-up presidential election less than a month away, and with earnings season getting underway this week. So today, to counter any further turbulence, we trim one modest laggard and add a new, low-beta, dividend-paying European stock that’s been a favorite of Cabot Explorer Chief Analyst Carl Delfeld for some time.

Details inside.

October 7, 2024

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Growth Stocks

Apple vs. Amazon Stock: Which Is the Better Buy?

They are two of the most recognizable names out there, and good stocks, but which is the better buy? Let’s break down Apple vs. Amazon stock.

October 3, 2024

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Cabot Value Investor

Cabot Value Investor Issue: October 3, 2024

Between the expansion of the war in the Middle East, a U.S. dockworker strike that could slow the supply chain again, and the uncertainty of a too-close-to-call presidential election next month, there are a lot of headwinds out there serving to counterbalance the good vibes created by last month’s Fed rate cut. Add in the fact that we’re in the traditional “spooky season” of October – the month in which the market has bottomed in each of the last four years – and it’s a good time to add some security to your portfolio.

So today we do just that … by adding a well-known home security company to our Buy Low Opportunities Portfolio. It’s been in business for a century and a half but has only been a public company for the past seven years. And with profits accelerating, the stock has become cheap.

Details inside.

October 3, 2024

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Cabot Stock of the Week

Cabot Stock of the Week Issue: September 30, 2024

Stocks cooled off this past week, though they mostly held their gains, which is not a bad way to close out an unusually productive September. Investors can likely thank the Fed for that. But many potential landmines (presidential election, escalating tensions in the Middle East, another jobs report this week) loom, so we’ll see how things go as we enter an uncertain October.

Given all the uncertainty, today we add a large-cap value stock that I recently recommended in my Cabot Value Investor portfolio. It’s one of the largest banks in America, and it’s potentially on the cusp of getting much bigger. Last year, it caught the attention of Warren Buffett. And so far, his bet on it appears to be paying off – with more upside ahead.

Details inside.

September 30, 2024

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Value Stocks

How to Know if a Stock Is Undervalued

With the market in the midst of a correction it’s important to know how to identify undervalued stocks and not just “cheap” stocks.

September 27, 2024

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Magazine

What Low Inflation Could Do for Stocks

Inflation has been a major talking point, if not a thorn in the market’s side, for over three years now. But it’s been tamed, and the future looks bright.

September 27, 2024

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Cabot Value Investor

September 26, 2024

Value stocks are starting to play catch-up.

The Vanguard Value Index Fund ETF (VTV), a good proxy for value stocks, is up 9% since the first week of August, more than half its year-to-date gain of 16.6%. While value stocks still trail the S&P 500 (+20.9% YTD) and growth stocks (the Nasdaq is +22.4% YTD), the gap is narrowing. Now that the Fed is finally cutting interest rates from multi-decade highs, perhaps this “in name only” bull market will spread to more corners of the market beyond just the Magnificent Seven, artificial intelligence stocks, and the other mostly tech-related plays that have carried this 23-month rally.

September 26, 2024

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Stock Market

How Long Until Dow 50,000, S&P 6,000, and Nasdaq 20,000?

After a rocky year, let’s look ahead to bigger and brighter things. Like when we might get Dow 40,000, S&P 5,000 and Nasdaq 20,000.

September 26, 2024

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Stock Market

This 100-Year Stock Market Chart Says the Bull Run Is Far From Over

Worried that the next bear market is long overdue? This 100-year stock market chart may help provide some encouraging perspective.

September 23, 2024

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Cabot Stock of the Week

Cabot Stock of the Week Issue: September 23, 2024

Our national high-interest-rate nightmare is over, as the Fed has (finally) started slashing short-term rates in a big way, cutting by 50 basis points last week. The market likes the aggression, sending two of the three major indexes to new all-time highs. Is it the beginning of a new – and more egalitarian – leg of the bull market? Could be. Regardless, let’s strike while the iron is hot, adding shares of the leading company in one of the hottest new U.S. markets: sports betting. It’s a recent recommendation from Mike Cintolo in his Cabot Top Ten Trader advisory.

Details inside.

September 23, 2024

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Cabot Value Investor

September 19, 2024

The Fed went big!

Everyone knew Jerome Powell and company were going to (finally) cut the federal funds rate for the first time in four and a half years on Wednesday. The question was by how much – 50 basis points (0.50%) or 25 basis points (0.25%)? To my mild surprise (but not to Wall Street’s – the options market had swung to a 59% probability that it would be 50 bps prior to the announcement), the Fed opted for the larger cut, slashing rates from 5.25-5.5% to a 4.75-5.25% range. So far, the market seems unsure how to take the hefty cut – all three major indexes were up more than half a percent immediately following yesterday’s 2 p.m. ET announcement, but then were narrowly in the red by day’s end.

September 19, 2024

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Dividend Stocks

5 Water Stocks and ETFs to Consider as the Global Water Crisis Worsens

Water, the most abundant resource on the planet, is becoming increasingly scarce in certain parts. These water stocks and ETFs are thriving.

September 17, 2024

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Cabot Stock of the Week

Cabot Stock of the Week Issue: September 16, 2024

It’s Fed rate-cut week. Will Jerome Powell and company come out of the gates quickly, slashing rates by a full 50 basis points, as the majority of traders now expect? Or will they start with a more sober, 25-basis point cut … which is what I expect? In the long run, it probably doesn’t matter much. But in the current market, the answer will likely determine whether last week’s bounce-back has legs – or if another October bottom is in order.

In the meantime, today we add a stock that has nothing to do with interest rates: a fast-growing water company. It’s a recent recommendation from Tyler Laundon in his Cabot Early Opportunities advisory.

Details inside.

September 16, 2024

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Dividend Stocks

Coke vs. Pepsi Stock: Maybe You Can Beat the Real Thing

In comparing Coke vs. Pepsi stock, neither soda giant will blow you away. But over the long haul, both are uncannily reliable. Which is best?

September 13, 2024

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Tech Stocks

As the Magnificent Seven Stocks Fizzle, the Bull Market Needs New Leaders

This 23-month bull market, led by the Magnificent Seven stocks, has been too top-heavy, and with the Mag. 7 rally seemingly over, new leaders need to emerge.

September 13, 2024

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Cabot Value Investor

September 12, 2024

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.

September 12, 2024

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Cabot Stock of the Week

Cabot Stock of the Week Issue: September 9, 2024

The predictable September selloff got underway last week, though thankfully only one holding in the Stock of the Week portfolio was a true casualty of Wall Street’s usual post-Labor Day foul mood. This week, likely the last before the Fed (finally) starts to cut interest rates, we add a company that should benefit directly from the cuts: a mortgage lender and real estate firm. It’s a new recommendation from Mike Cintolo in his Cabot Top Ten Trader newsletter, and it’s a stock that’s already having a nice year – but could have way more upside once the Fed starts to cut rates.

Details inside.

September 9, 2024

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Dividend Stocks

Why Business Development Company Investing Makes Sense

Investing in a business development company is a high-risk, high-reward proposition for income investors. But you can mitigate risks.

September 6, 2024

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Cabot Value Investor

Cabot Value Investor Issue: September 5, 2024

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!

September 5, 2024

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Cabot Stock of the Week

Cabot Stock of the Week Issue: September 3, 2024

September selling is already underway. Just remember that it’s almost always temporary. The S&P 500 has been down at least 4% after Labor Day in each of the last four years, with a bottom coming sometime in October. All four times, it has eclipsed pre-Labor Day levels by the third week of November. Thankfully, our portfolio enters September in very good shape, with 12 stocks up double-digit percentages and four others up by at least triple digits. To help weather another potential September storm, today we add a “safer” dividend stock recently recommended by Chief Analyst Tom Hutchinson to his Cabot Dividend Investor audience.

Details inside.

September 3, 2024

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Growth Stocks

AMZN Stock vs. GOOG Stock: Which Is the Better Buy Today?

AMZN stock and GOOG stock are two musts for any portfolio. But which tech behemoth is better positioned for future growth?

September 3, 2024

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Magazine

Are Small Caps Actually Rallying? Or Is This Another Tease?

Small caps historically outperform larger stocks, but they’ve been underperforming for years. Is it finally their time to shine?

August 30, 2024

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Cabot Value Investor

August 29, 2024

It is a late-summer/early-fall rite of passage on Wall Street: After Labor Day, the institutional investors and hedge fund types return from their summer vacation homes in the Hamptons and immediately start selling. They sell out of their weakest positions that have been neglected and left to rot during the summer months, in the hopes of beefing up their quarterly returns before October brings a new quarter. The result is that September is, far and away, the worst month for stocks, with an average decline of -1.17% in the S&P 500 dating all the way back to 1928. The next-worst month is February, with a mere -0.14% decline.

That’s the bad news as we enter September. Here’s the good news.

August 29, 2024

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Cabot Stock of the Week

Cabot Stock of the Week Issue: August 26, 2024

After an unusually eventful start to the month, stocks have settled into their normal pre-Labor Day malaise. It won’t last long. Early September typically brings a round of selling as Wall Street returns from vacation and starts culling laggards from their portfolios. But with a Fed rate cut now definitely coming just a couple weeks later, could this be a more constructive September than normal? We’ll see. In the meantime, let’s try and sidestep the coming volatility by adding an undervalued mega-cap tech stock that’s well outside U.S. borders. It’s a former market darling that’s become unloved in recent years. But new Cabot Turnaround Letter Chief Analyst Clif Droke spots a bargain, and so today we add it on the cheap to our Cabot Stock of the Week portfolio as well.

Details inside.

August 26, 2024

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Growth Stocks

3 Hybrid Car Stocks to Consider While EVs Struggle

Hybrid car stocks are picking up speed while electric vehicle stocks have seemingly shifted into “Neutral” as consumer preferences shift.

August 23, 2024

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Cabot Value Investor

August 22, 2024

The success of headliners Walmart and Target in the last week has helped drive consumer staples stocks as a group up nearly 5% in August. No other S&P 500 sector has performed better this month. And yet, consumer staples are “only” up 14% year to date, trailing the gains in the S&P 500 (17.3%).

Thus, the sector as a whole is still undervalued. That spells opportunity.

August 22, 2024

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Stock Market

What Is a Small-Cap Stock?

A small cap stock is a company that is just starting to gain momentum. While risk is present, their youth gives them the potential to net massive returns.

August 21, 2024

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Cabot Stock of the Week

Cabot Stock of the Week Issue: August 19, 2024

Stocks are rolling again, and the panic that engulfed the market just two weeks ago has vanished, replaced by the longest market winning streak all year. Nearly all our Stock of the Week stocks are up in the past week, several of them by double digits, led by AST SpaceMobile (ASTS) – up more than 80% (!) since we last wrote. So, let’s strike while the iron is hot and add another upstart growth stock to the portfolio in the form of a mid-cap just recommended by Carl Delfeld in his Cabot Explorer advisory.

Details inside.

August 19, 2024

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Stock Market

What to Expect in the New Low-Inflation Stock Market

Stocks did “fine” over the last three and a half years, a period of high inflation, but will a low-inflation stock market environment bring even better returns?

August 16, 2024

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Cabot Value Investor

August 15, 2024

Inflation is dead.

OK, it’s not “dead.” But at 2.9% in July, as reported Wednesday morning, it has now (narrowly) reentered the Federal Reserve’s magical 2% realm for the first time in nearly three and a half years – since March 2021. For all the inflation angst during those past three and a half years, the market has fared pretty well overall – the S&P 500 is up 30% since the first CPI print north of 3% was reported in mid-May of 2021. On a per-year basis, that only slightly trails the average annual return in the large-cap index of 9.9% since its inception in 1928.

August 15, 2024

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