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CABOT EVENTS

Cabot Weekly Review (Video)

In this week’s video, Mike Cintolo talks about the market’s continued wobbles, this time on two big pieces of news (inflation first, then Iran/Israel potential conflict). Despite the volatility, his stance hasn’t changed, as the market and most leaders are stuck in the middle -- being sold on strength but with few flashing abnormal action on the downside, either. The goal now is to have your plan in place, both in terms of stops should the sellers stay at it -- as well as your watch list, where Mike relays another batch of enticing setups.

Stocks Discussed: LLY, NVO, TOST, ASML, CAVA, WING, WFRD, FCX, CART, IBIT, AXON, DUOL, FRPT

Cabot Street Check (Podcast)

This week on Street Check, Brad opens the show by making the case that ASML’s (ASML) earnings are a canary in the coal mine for the broader market narrative. Then, Chris and Brad discuss the recent market pullback and if it presents a buying opportunity or is part of a deeper correction. After that, they cover the early stages of earnings season and the winners and losers just a few weeks in. To close the show, they talk Bitcoin and debate whether the rally is over for cryptocurrencies or if it’s just taking a breather. To the listeners, thank you for helping make the first year (of many) of Street Check a memorable one.

Cabot Webinar

March 26, 2024 12:00 PM ET
Capitalizing on the Bull Market: 4 Experts & Their Top Picks for April 2024
Watch Now

Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from January 24, 2024 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 April 4: Most of the evidence remains bullish, so we continue to hold our winners and selectively put money to work — but the fact is that most growth stocks have been chopping sideways overall for a month or two, so we’re OK holding some cash and waiting patiently for the market and leaders to show their near-term hand. Tonight, we’re booking a little more partial profits in one of our winners, but are standing pat otherwise and will follow the lead of the market—and of leaders—going ahead.

Bi-weekly Update March 27: WHAT TO DO NOW: Remain bullish, but continue taking things on a stock-by-stock basis. We’re seeing another round of sharp selling in many leading growth stocks today, though few (if any) have cracked meaningful support. To us, it’s another shot across the bow, not prompting any major moves but putting us on alert with certain names. In the Model Portfolio, we’re making one small move—selling 20% of our stake in CrowdStrike (CRWD)— while doing a quick flip on Celsius (CELH), placing it on Hold after last week’s half-position buy after today’s drop on news. Our cash position will now be 25%, and we’re keeping our eyes on a few names should the selling continue.

Cabot Top Ten Trader

Weekly Issue April 1: It seemed like the post-Fed action from two weeks ago may have paved the way for another leg up in the leadership, but while that’s not off the table, we’re continuing to see a lot of crosscurrents out there as money sloshes around. What does it mean? Not much yet, as the major evidence remains positive, but it’s best to continue to raise and honor your stops, while for new buying, make sure you’re focusing on names that are generally earlier in their moves. We’ll leave our Market Monitor at a level 8, but more than ever, it really depends where you look.

This week’s list has many names that are either just coming into favor or have tightened up nicely after prior runs. For our Top Pick, we’ll go back to the commodity theme, with a stock that’s toying with new highs despite the fact that natural gas is still at very low levels. We’re OK starting small here and adding if the buying continues.

Movers & Shakers April 12: It’s been an interesting week for the market, with the biggest piece of headline news being Wednesday’s worse-than-expected inflation report, which roiled Treasuries (yields up 12 to 18 basis points on the week). Beyond inflation, there have been rumblings of late (including this morning) that Iran is set to attack Israel in some way or another, which is causing some angst this morning.

Cabot Value Investor

Monthly Issue April 4: After years of being either ignored or sold off, value stocks are finally having a moment on Wall Street. The Vanguard S&P 500 Value Index Fund (VOOV) is up 25% in the last five months and is actually outpacing growth titles over the last month. Still, it’s a bull market, and growth stocks are king. How to compete as value investors in a growth-minded market? By seeking growth stocks at value prices.

Today, we do just that, adding a household name that’s been rejuvenated thanks to a shift in industry trends. The stock is up 18% year to date, and yet its shares remain dirt cheap by virtually every measure.

Enjoy!

Weekly Update April 18: There’s a lot of noise out there. Sticky inflation and the Fed’s response to it; Iran getting involved in the Israel-Palestine war; war in Ukraine now in year three; a pivotal U.S. presidential election drawing ever closer; first-quarter earnings season underway, etc., etc. But the only thing that truly matters to the market, at least lately, is bond yields. Specifically, yields on the 10-year U.S. Treasury bonds. The last couple years, the inverse bond yield-stock market correlation has been undeniable.

Cabot Dividend Investor

Monthly Issue March 13: The rich get richer. Now, you can too.

Growing businesses with big ambitions need large amounts of money to grow and expand to the next level. But these enterprises can’t get the necessary capital from stodgy and risk-averse bankers. And they are still too small to access the capital markets by issuing stock or bonds. Thus, they are forced into the domain of wealthy individuals and institutions that have money and are itching to reap high returns.

These venture capitalists provide desperately needed money to up-and-coming businesses that can’t get it anywhere else. Thus, they are in a position to negotiate very favorable terms for themselves.

As financial markets have grown in sophistication, venture capital investing is no longer the exclusive domain of the wealthy. There is a little-known class of security that enables regular investors to mimic the very same moneymaking strategies employed by the rich and famous. These securities are called Business Development Companies (BDCs).

In this issue, I highlight one of the most successful BDCs on the market. It pays dividends every single month, has a long and consistent track of raising payouts, and has delivered fantastic total returns.

Weekly Update April 3: It was a great first quarter. The S&P closed out March up 10% YTD. The index also rallied an impressive 28% from late October through the first quarter. Is there more upside ahead?

Things have been good. The Fed reiterated its intention to lower the Fed Funds rate three times this year at the March meeting. Meanwhile, inflation is way down and the economy is solid. Manufacturing data was much better than expected and the Fed raised its GDP forecast for 2024 from 1.4% to 2.4%.

Cabot Early Opportunities

Monthly Issue March 20: In the March Issue of Cabot Early Opportunities we spread things around with a diverse group of mid-caps, plus one large cap from our Watch List that’s one of the biggest stories in MedTech.

Cabot Income Advisor

Monthly Issue February 27: The Goldilocks scenario of falling inflation and a still-strong economy is unlikely to last. Interest rates will have to come down before long or the recession that the market is dismissing might be just a little further down the road. But recent higher-than-expected inflation is making lower rates less likely.

Sure, the rally could last for a while. The economy always seems to be more resilient than people expect. But the circumstances behind the rally since October are unlikely to last. This environment will change. For that reason, it doesn’t make sense to chase stocks that have been working so far this year. It’s better to position ahead of a new dynamic that is likely coming.

Change creates opportunity. There are many great income stocks that are not benefiting from this rally. Yet these stocks are selling at historically very cheap valuations with high yields. These stocks also can thrive in a slowing economy. In this issue, I highlight two stocks in particular that are cheap and high-yielding ahead of a period of likely market outperformance.

Weekly Update April 16: This market has been resilient. But that resilience is being severely tested. The next couple of weeks should tell us the near-term direction of stocks.

The S&P rallied higher for five straight months. That’s long in the tooth for any rally. The market is down so far in April and the story is changing for the worse.

Cabot Turnaround Letter

Monthly Issue March 27: TThank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the April 2024 issue.

In this issue, we discuss the most effective and often the only way to reverse the fortunes of a struggling company: a change in leadership. We offer our views on four new CEO situations that are currently attractive and three that are not quite ready yet.

This month’s Buy recommendation, Barnes Group (B), is an aerospace and industrial components maker that is stepping up its efforts to become more valuable, helped by a new CEO and urged on by pressure from a credible activist investor that recently gained several board seats.

Weekly Update April 12: Wells Fargo (WFC) kicked off the Cabot Turnaround Letter earnings season today, showing EPS of $1.26/share, which exceeded estimates by 17 cents. WFC also beat top-line revenue estimates by $710M, coming in at $20.86B. Despite the comfortable beats, WFC shares are essentially flat for the day.

Cabot Money Club

Monthly Magazine April: Artificial intelligence (AI) is everywhere these days, and personal finance is no exception. In this month’s issue we’ll dive into the next generation of personal finance apps, the new tools available to savers and investors, and how to deploy them in your daily lives to optimize your financial wellbeing.

Stock of the Month April 11: It was more of the same for the markets this past month—some momentum, but ultimately, we ended up in just about the same place.

Investors are a little gun-shy as most were expecting Fed rate cuts to begin in the latter half of the year. But as the inflation beast is proving harder to tame than expected, Fed Chair Powell has indicated it may take longer before we see a rate cut.

Naturally, the markets had an issue with that.

However, they seem to have absorbed that information and gone back to business.

ASK THE EXPERTS

Prime Question for Tyler: Hi Tyler. What are your thoughts on Cadre (CDRE) and Soleno Therapeutics (SLNO)?

Tyler: Have been watching those closely and decided to move to hold today, as you likely saw.

SLNO/biotech just isn’t liking the upturn in rates.

I’m very surprised CDRE is not doing better with the news out of Gaza, etc. Not that it’s a pure defense stock, but it’s in the general group. And Northrop Grumman (NOC), General Dynamics (GD) and some other defense names up today (Kratos Defense & Security (KTOS) is also OK). Might take a day or two for some of these smaller defense type names to shrug off today’s action and move more on their own group/story/fundamentals.

Continuing to watch ...