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CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the market’s volatile but short-term normal action of late, with last week’s panic selling still likely to lead to some calmer days and, ideally, some repairing action for the indexes and leading stocks--indeed, more than a few growth names are starting to poke their head up, showing clear relative strength. Even so, more patience is needed here for the major trends to turn up, but Mike reviews many potential leaders and runs through some scenarios of what’s likely to come next.
Stocks Discussed:UBER, DASH, SCHW, MRX, LLY, TTWO, NFLX, ADMA, GH, TGTX, OLLI, MP, MOS, NTR
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the growing normalcy in the market following the tariff pause, the latest comments from the Fed, what they mean for rates, the Fed “put” and J. Powell’s job moving forward, and results from the big banks to start earnings season. Then, they’re joined by Producer Madison to reminisce about the first 100 episodes of Street Check. To learn more about this week’s offer, visit cabotwealth.com/street.
Cabot Summit: Investing Masterminds 2025
Join us in Salem, Massachusetts, this summer from August 13-15 for our Investing Masterminds Conference and unlock powerful market strategies, top stock picks, and expert analysis. Engage with the Cabot Wealth analysts and connect with other investors to share insights and strategies. Click here to Register.
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 April 17: The market has bounced off of last week’s low, and given the number of secondary extremes seen during that selling panic, we think the odds are good that low will hold for a while--if not longer. That said, bottoms are usually a process, not an event. so there’s a good chance the market is now building a bottom area, which will likely prove hectic on a day-to-day basis (as we’ve seen this week) but allow the leaders of the next advance to start separating from the pack.
That’s a first step, and we’re busy building our watch list--but when you look at the primary evidence, all of it remains negative, as the trends of most everything are still down. Thus, while we won’t rule out a small new position or two if the market continues to stabilize, we’re remaining very close to shore and keeping our eyes on the big prize -- hopping on some new leaders early in the next sustained uptrend.
Bi-weekly Update April 10: WHAT TO DO NOW: Remain defensive, but keep your eyes open. Yesterday’s rally was noteworthy and may have started (or will soon start) a process of repairing the damage from the recent selling. That said, the market’s trends are still down and few stocks are in great shape, so the odds favor the repair process taking some time. Of course, we’re flexible, so if the buyers go wild, we’ll act, but tonight we’re again standing pat and seeing how this bounce plays out. Our cash position remains near 87%.
Cabot Top Ten Trader
Weekly Issue April 14: We think the odds favor the market has found a short-term low (last Monday) amid lots of panic selling, and it’s probably starting to repair the damage from the prior few weeks … but that process is likely to take some time, as the market deals with the tariff and economic uncertainty and as new potential leaders try to round out launching pads. Of course, how the market acts from here will be key, so we’re remaining flexible, but we always advise going with what’s in front of us, and right now the odds favor more patience will likely be needed before a sustained advance can develop. We’ll leave our Market Monitor at a level 3.
As the correction has gone on, it’s become easier to spot the names that are resisting the decline. Our Top Pick is a newer name to most and it’s shown accelerating accumulation the past three weeks.
Movers & Shakers April 17: HOUSEKEEPING: First, as a reminder, our offices will be closed alongside the stock market tomorrow for Good Friday—which is why we’re sending out this update a day early. Second, I’m taking a light work week next week—Top Ten will come regularly on Monday, though Friday’s Movers & Shakers will likely be a bit condensed. Have a great long weekend and Happy Easter to those who celebrate.
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After a huge turnaround last week, as investors bought the plunge, stocks sold off modestly in this holiday-shortened week. As of this morning, the big-cap indexes are down in the 1% to 2% range on the week, though some broader indexes are actually up.
Our general view right now (always subject to change) is that the market likely hit a low last week that it can work off of for a while.
Cabot Value Investor
Monthly Issue April 3: U.S. stocks remain paralyzed by tariff fears, but not energy stocks. They’re the best-performing S&P 500 sector by far this year, more than doubling the return of any other sector. And yet, they remain the most undervalued sector by virtually every measure. So this month, we add a large-cap energy stock to the Cabot Value Investor portfolio that has a yearslong history of not only outperforming the market, but blowing it out of the water. But after a slow start to the year, it’s trading at a rare discount. We think it has immediate upside – and a high dividend yield should hold us over until it gets there.
Details inside.
Weekly Update April 17: Regardless of your politics, “calm” is not a word you would likely use to describe the stock market under President Trump, at least through the first three months of his second term. But given the extreme tariff-fueled volatility that pervaded this time a week ago, that’s exactly how the last week has felt for investors: calm.
Cabot Dividend Investor
April 9: The S&P crashed more than 5% on consecutive days last week for the first time since the onset of the pandemic. The index came within a whisker of a bear market, down 20% from the high on a closing basis.
It’s easy to get spooked out of the market these days. Few people believe the market has hit bottom when it does. Unheeded warnings play over in your mind as Judgement Day seems to have arrived. Stocks were overvalued. The trade war will cause a global recession. Excesses of the last several decades are being called. It’s time to get out of the market and save yourself.
Markets are emotionally driven in the short term. Fear and greed tend to be the dominant forces. But over time, emotions take a back seat to money and profits. When the market tanks, our emotions tell us to run for the hills. But history tells us it’s the best time to invest.
There are some truly stellar stocks in the portfolio that have generated returns comparable to the most successful stocks on the market. The problem is that these stocks are rarely cheap. But the recent market has put these phenomenal investments back within reach.
The recent panic has provided a rare entry point. Even if prices fall further before they rise, these stocks can easily make up for lost time when they move higher again. In this issue, I highlight two of the best stocks in the market to own at valuations not seen in years.
Weekly Update April 16: The market has recovered in a big and fast way over the past week. Are we out of the woods?
What a difference a week makes. Things were frog ugly at the beginning of last week. We were approaching a trade war with the whole world. The S&P 500 came within a whisker of bear market territory (down 20% or more from the high on a closing basis). In fact, it hit the 20% mark down from the high on an intraday basis twice. Then last Wednesday happened.
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 March 25: After falling into correction territory earlier this month, the S&P 500 came off the bottom and has been trending higher. Is that the end of the selling? I don’t think the market has decided yet.
Some tariff clarity could arrive soon. Stocks rallied strongly to start the week partially on news that pending tariffs will be more “targeted.” Technology stocks also rallied on the perception of higher-than-expected AI demand. But the market is very headline sensitive. And the headlines are likely to keep on coming.
If I had to bet, I would say the market probably made the bottom for now and is more likely to trend higher. But I don’t have a high degree of confidence right now. A couple of negative headlines could send stocks plunging to new lows.
There are some select stocks that are actually near the 52-week high. I’m more comfortable selling a covered call on a stock with recent strong performance than initiating a new stock position at this point. In this issue, I highlight a covered call for the biopharmaceutical company AbbVie Inc. (ABBV).
Weekly Update April 15: The market got a reprieve last week. But we’re probably not out of the woods yet.
The S&P 500 came about as close to a bear market as you can get early last week. In fact, it hit the 20% mark down from the high on an intraday basis twice. But it’s not an official bear market until the closing price falls below 20%. The S&P seemed to have one foot on a bear market and the other foot on a banana peel. Then last Wednesday happened.
Cabot Turnaround Letter
Monthly Issue March 26: In uncertain times like these, it’s only natural that defensive-minded investors are gravitating to healthcare stocks. After all, this space is characterized by consistent demand for essential products and services that millions rely on, regardless of the state of the economy. (Additionally, many of the companies in this category offer dividends that can be considered quite attractive during market sell-offs.)
While the sector itself has only lately returned to favor, a number of consumer-facing healthcare companies remain out of Wall Street’s good graces and under the public’s radar—including some which provide critical staple products for the everyday needs of consumers.
One of those companies is today’s turnaround recommendation.
Weekly Update April 17: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Agnico Eagle Mines (AEM), Alcoa (AA), Kenvue (KVUE), Pan American Silver (PAAS), Sirius XM Holdings (SIRI) and Toast (TOST).
Precious metals miners Agnico Eagle Mines (AEM) and Pan American Silver (PAAS) continue to lead the portfolio after making yet another series of new highs this week.
Cabot Money Club
Monthly Magazine April: Buffett, Graham, Icahn, Templeton ... these are just a handful of seven legendary investors that have helped define what investing success means for generations. In this month’s issue, we’ll investigate the strategies that made these investors titans of the industry, what they have in common, and how you can adopt those strategies to achieve greater profits in your own portfolio.
Stock of the Month April 10: On the surface, the economic numbers still look pretty good. Although unemployment edged up to 4.2% from 4.1% last month, the number is still low. Jobless claims are down; jobs added, up. Manufacturing looks good, but housing continues to be weak, due to sticky prices and high interest rates.
But the good economic news is on pause, due to tariffs. Already, we’ve seen the 30-year mortgage rate rise to 6.85%, and economists are back to predicting a recession, based on rising business and consumer costs related to the tariffs—which are not yet reflected in the economic stats.
ASK THE EXPERTS
Prime Question for Tyler: Hey Tyler. As a contrarian during tough times I like to dig through the rubble of Good Small-Cap Companies that were once well thought of but are currently (getting) hammered. Enovix (ENVX) and FTAI Infrastructure (FIP) come to mind and I was wondering if you had to bet on one of these, which one would it be? Thank you in advance.
Tyler: I love it when somebody refers to my positions as buried in “rubble”! Perfect description - they have been just terrible. I continue to own both, however.My reasoning, and this should address your question, is that ENVX will ultimately get to production stage and when it does it “should” act like a biotech that has just received FDA approval for its first drug. Game changer. That should jolt the stock back to life and then we worry about who is buying what, how much, what the actual customer/product category ramp looks like, how many more production lines/CapEx, etc. It seems like the stock is so beat up that it’s a good value. But of course, it could fail completely.On FIP, I continue to own it because I really like the mix of infrastructure that it owns and I think this exposure is hard to come by with a smaller company. It’s somewhat encouraging that other infra stocks are beaten up as well - it’s not just FIP. I like that it has real assets that it can monetize (like the underground nat. gas storage caverns, once permitted, that nobody really knows about, i.e. the market should be surprised) and, at this price, is paying a 3%+ dividend. I have no feel for how the U.S. Steel (X) negotiations with Nippon will go, but it seems like there’s still potential there (a deal would be good, I believe, as it would open the door to transport a lot more products than just from X, who FIP bought the rail branches from) and, big picture, I like the idea of owning a small slice of the U.S. railroad network if we boost manufacturing in this country. Same goes for FIP’s ports, though it’s tough to see through the current climate and get a bead on whether volumes will ramp or not. In any event, I think for somebody that can really just hold on and wait that FIP is pretty intriguing.
Totally different risk profiles (ENVX’s is higher, in my opinion). And upside in the two stocks is maybe not all that different 2 years out if things go “right”. I think if you have to choose it depends on what sounds more appealing - start-up battery manufacturing coming out of Asia or a domestic infrastructure play.