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CABOT EVENTS

Cabot Weekly Review (Video)

In this week’s video, Mike Cintolo talks about the market’s very bullish week, highlighted by the Monday reaction to the U.S.-China trade truce; at this point, most of the top-down evidence is positive, so Mike’s been putting money to work. That said, he’s also looking for more leadership to develop--Mike thinks it will, but until it does, he’s buying in steps while looking for more names to sink his teeth into.

Stocks Discussed: CRWV, NXT, IBIT, MSTR, UBER, TOST, PODD, CRWD, NVDA/AVGO, APH, APG, DE, NRG, ALAB, NET

Cabot Street Check (Podcast)

On today’s Street Check, Chris welcomes on Mike Cintolo and Jacob Mintz to talk all things market, including what indicators Mike still needs to see to give him the full green light on growth stocks, and what stocks are attracting the biggest call buys in the options market, according to Jacob. We also discuss the tariff pause, improving inflation data and Mike’s beloved New England Patriots. For more information on this week’s special offer, visit cabotwealth.com/street.

Cabot Webinar

Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts 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 May 15: From a top-down perspective, the market’s action over the past few weeks is about as good as you could have hoped for -- our Cabot Tides, Two-Second Indicator and Aggression Index have turned positive, and combined with the negative sentiment and blastoff-type indicators, we think the path of least resistance has turned up and solid gains are likely, at least when looking out many months.

The holdup is growth stock leadership, which has been tricky to this point, with many strong stocks getting hit while beaten-down names rally. That situation has improved some this week, but we want to see more fresh leadership kick off in the weeks ahead.

Still, we’ve reacted to the improvement in the evidence by making a few moves, some on the sell side (kicking out laggards), but a bunch on the buy side -- we still have 55% cash and are hoping to put some of that work if and as new leaders emerge. We review all our thoughts and some names we’re watching closely for purchase in tonight’s issue.

Bi-weekly Update May 8: WHAT TO DO NOW: From a top-down perspective, there’s plenty of good news from the secondary evidence and our Cabot Tides is very likely to turn positive tomorrow, which is another good sign. That said, individual stocks remain very tricky, with lots of selling on strength and poor earnings reactions among names we own or have been watching—that’s not a reason to be bearish, but we advise going slow until we see more real breakouts. In the Model Portfolio tonight, we’re jettisoning our small stake in Argenx (ARGX), which has fallen apart this week pre- and post-earnings, but we’ll add two new half-sized positions: Halozyme (HALO) and GE Aerospace (GE). That will leave us with around 70% in cash—we’d like to put more cash to work but will wait for names to emerge instead of forcing the issue.

Cabot Top Ten Trader

Weekly Issue May 12: There’s no question that, from a top-down perspective, the evidence has continued to improve over the past few weeks, with today seeing the market surge as the U.S. and China slashed tariffs on each other. That said, even with today’s run in the indexes, leadership is hard to spot—many names that approach old highs are rejected, with the buying focused on beaten-down names for the most part. Don’t get us wrong: We’re encouraged and extending our line, but we’re doing so slowly until some real leadership develops. Our Market Monitor stands at a level 6.

This week’s list has a mix of names from different sectors and with some at different areas on their charts. Our Top Pick staged a classic gap to new highs after earnings last week. We’re fine starting small here or on dips.

Movers & Shakers May 16: It’s been a great week for the major indexes—Monday did most of the heavy lifting, of course, with the market surging after the U.S. and China announced a trade truce of sorts, but the market has built on those gains since. Coming into today, most major indexes were up in the 3.5% to 5% range, with the Nasdaq doing even better.

In terms of the intermediate-term evidence, it continues to improve—the intermediate-term trend turned up a week ago and obviously got a boost this week, while our Aggression Index (compares the growth-y Nasdaq to the defensive consumer staples) has also turned up and the broad market has returned to health.

Cabot Value Investor

Monthly Issue May 1: Few industries were more negatively impacted by Covid than the cruise industry. And few have come roaring back faster in Covid’s wake. And yet, share prices haven’t kept up with the record sales and passenger numbers. So today, we recommend a major cruise-industry stock that has the largest disparity between sales and earnings growth and share price growth. We also have updates on all our existing stocks as investors mercifully put a historically choppy April for the market in the rear-view mirror and flip the calendar to what will hopefully be a far more fruitful May.

Details inside. Enjoy!

Weekly Update May 15: Stocks are back in business!

Yes, a little more than a month after some of the worst investor sentiment readings in years, soaring volatility, and a 19% decline in the S&P 500 – not to mention both the Nasdaq and the Russell 2000 swinging to bear market territory – stocks are suddenly on a roll, recession fears are abating, and, perhaps most importantly, tariff deals have been struck. The 90-day pause on most reciprocal tariffs initiated by President Trump on April 9 – one week after the deeply unpopular “Liberation Day” was announced – triggered one of the biggest one-day rallies in stock market history. Indexes flirted with their early-April lows two weeks later but eventually stabilized, and May has brought a wave of positive tariff news – first, a deal with the United Kingdom, in which key imports like cars were reduced to 10% and steel and aluminum tariffs were eliminated; then, last weekend came a 90-day truce with China. That sent stocks soaring more than 3% on Monday, and they haven’t looked back.

Cabot Dividend Investor

Monthly Issue May 14: Just a little over a month ago, stocks were crashing. But things are changing fast.

The tariff uncertainty has vastly improved with the announcement of trade deals with the U.K. and positive negotiations with China. The S&P has soared 22% from the intraday low on April 7. The index is now in positive territory YTD and within 5% of the all-time high. The technology-laden Nasdaq index is up 28% from the April low.

But the market tends to overreact in the near term. Tariff trouble isn’t over yet. There could still be setbacks. A negative headline can roil the market on any day. There’s also the economy. Growth is slowing. It may pick up or slow further. What will be waiting beyond the tariffs?

Fortunately, there is a trend to bank on that will thrive regardless of the near-term gyrations of the market or economy.

Artificial intelligence is a massive growth catalyst that will endure and thrive in any environment. It is a generational phenomenon that will drive certain stocks to huge gains. The dominant trend has sold down and consolidated in recent months. Such a move was overdue. But technology is coming back strong. It’s the hottest sector again.

In this issue, I highlight a goliath in the technology industry that is poised for a huge growth windfall from artificial intelligence in the years ahead. The stock has fallen far from the high. But the AI trend is revving up again and will likely transcend the current unpredictable environment.

Weekly Update May 7: The market just had a big leg higher. Last Friday the S&P 500 concluded an epic nine-day run of positive gains, the longest such streak in more than 20 years. The index rose by more than 10% during the streak. What’s going on?

Cabot Early Opportunities

Monthly Issue April 16: Despite the crazy market, there are still stocks out there that are acting extremely well.

This month’s Issue covers five standout performers in the sports betting, gold mining, natural foods, insurance and pharma markets.

Cabot Income Advisor

Monthly Issue April 22: It’s been a tough market. The S&P started this week down about 6% for the month of April, over 10% YTD, and over 14% from the high. And that was before Monday’s selloff. It is entirely possible that the market falls back to a new low and an official bear market.

The tariff uncertainty is continuing, and it could get worse. A bad headline could roil the market any day. We’re not out of the woods yet. The market could get worse before it gets better. But it will get better at some point.

Weekly Update May 13: The market is booming. The worst appears to be over, and sustained upside from here is entirely possible.

The S&P 500 closed on Friday up about 17% over the last month. The index also moved to within 8% of the all-time high. And that was before the huge rally on Monday.

The Trump administration announced huge progress with China in trade talks over the weekend. The two sides reportedly agreed to a 90-day pause on tariffs, with duties set to drop 115% on both sides by Wednesday. President Trump and the Chinese president are likely to talk in the coming days. This follows the announcement of a comprehensive deal with the U.K. last week.

Cabot Turnaround Letter

Monthly Issue April 30: “What’s that got to do with the price of eggs?” is an adage that was once commonly used to question the relevance of a particular subject introduced to a conversation. But in light of current economic conditions—and as it pertains to this month’s stock recommendation—that question is entirely relevant.

Indeed, the price of eggs is just one of many concerns for millions of Americans today as inflation remains a thorn for the economy and for policymakers. Record-high egg prices have become emblematic of the larger question of inflation’s persistence, particularly for retail food costs.

Weekly Update May 16: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Agnico Eagle Mines (AEM), Alcoa (AA), Centuri Holdings (CTRI), Dollar Tree (DLTR), GE Aerospace (GE), Intel (INTC), Pan American Silver (PAAS) and Toast Inc. (TOST).

Intel’s prospects hinge on the success of its 18A process node, which has the potential to be a major catalyst for its turnaround.

Cabot Money Club

Monthly Magazine May: Artificial intelligence is everywhere these days, from your email spam filters to customer service chatbots to phone systems, but does it belong in your portfolio? This month, we’ll learn more about the growing use of AI in day-to-day life, how it operates, how companies are leveraging artificial intelligence to manage investments, and whether you should trust these automated tools to make (or help you make) investing decisions.

Stock of the Month May 8: While the volatility continues, the markets made some upward progress since our last issue, with all the broad indexes rising—although both Growth and Value stocks are still negative, year to date.

Sector-wise, all sectors— except for Energy (-6.02%), Technology (-7.34%) and Consumer Discretionary (-11.17%)—are in the black, led by Utilities (+5.10%), Consumer Staples (+3.66%), and Real Estate (+2.98%).

ASK THE EXPERTS

Prime Question for Chris: Chris, what’s up with the recent slide in Waste Management (WM)?

Chris: Earnings were just OK, and, perhaps more importantly, the market has quickly flipped to “risk-on” in the last week or so, and boring safety stocks like WM and gold miners have been tossed aside, at least temporarily. We sold it in Stock of the Week this week mostly because the portfolio is getting a bit crowded and it stood out as one of the few laggards (though it was only down 1-2% from our entry point), but if you own some, it wouldn’t be the worst decision to just hang on to it. You’ll probably get rewarded eventually, and it’s super-low beta so I doubt it’s going to totally implode.