Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the big improvement in some evidence seen during the past two weeks, including one rare “blastoff” signal that flashed last week and portends great gains down the road. With that said, the primary evidence is still on the fence, so Mike’s holding plenty of cash--but has his shopping list ready, as in Mike’s words “it could be go time” if earnings are well received next week.
Stocks Discussed: ZS, DASH, UBER, LTH, PODD, HWM, CRS, GE, NFLX, MSFT, IBIT, SE, APH, DUOL, RBLX
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the bull case for Bitcoin, this week’s negative GDP print and whether it’s as bad as it seems, earnings reports from a handful of mega-cap tech stocks and rumors that Tesla’s (TSLA) board has considered moving on from Elon Musk. Then, Clif Droke joins to share his insights on the best-looking sectors for turnarounds, what he sees under the hood of the market, and his prognosis for gold and silver going forward. For more information on the upcoming webinar, 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 1: The evidence has improved during the past couple of weeks, with our Two-Second Indicator looking much better and, importantly, a Three Day Thrust signal (one of our Blastoff Indicators) flashing green last week, both of which prompted us to put a little money to work last week. Still, while that’s definitely a feather in the bulls’ cap, the primary evidence remains negative, so we’re continuing to hold plenty of cash while setting our sights on next week: If our Tides turn positive and many potential leaders gap on earnings (there are tons of names reporting next week), we’ll definitely be putting a good chunk of money to work ... but as always, we’ll take it as it comes, which today means going slow but staying flexible should the market’s recent good vibes accelerate.
Bi-weekly Update April 24: WHAT TO DO NOW: Start to slowly come off the sideline. Our Cabot Trend Lines and Cabot Tides remain negative, and most stocks are still south of key moving averages, so we’re remaining overall defensive—but today our Three Day Thrust indicator flashed, and while that doesn’t preclude some near-term volatility, it does hint that a bottom could be in and a good-sized rally will evolve down the road. That’s not a reason to buy willy-nilly, but given our monstrous cash hoard, we are slowly coming off the sidelines with two new small buys, adding half-sized stakes in Take-Two Interactive (TTWO) and Penumbra (PEN). Our cash position will still be around 75% after these buys; as always, we’ll follow the market from here in terms of more new buys—or backing off.
Cabot Top Ten Trader
Weekly Issue April 28: The past week or so definitely showed some very encouraging action, with one of the key “blastoff” indicators we track turning green on Thursday. So does that mean we’re off to the races? Well, we wouldn’t go there, at least not yet: The intermediate-term trend of the market and most stocks are still down, and it’s not unusual at all to see some near-term wobbles after this kind of blastoff signal. All in all, we think there’s enough good vibes to extend your line a bit—but we don’t advise buying hand over fist as we’re still looking to see added confirmation. We’ll bump up our Market Monitor two notches to a level 5.
This week’s list is full of resilient names, though many have earnings coming up, so be aware of those dates. Our Top Pick has a great story, great numbers and a resilient chart, with shares back near their highs after a bullish earnings reaction. Start small here or on dips.
Movers & Shakers May 2: Following last week’s impressive turnaround, the market’s encouraging vibes continued this week, with all the major indexes posting gains in the 1% to 2% range (ballpark) coming into today.
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 April 24: The market took a turn for the better this week as President Trump backed off his criticisms of Fed Chairman Jerome Powell and indicated there may be some wiggle room on his sky-high tariffs on China. Those served as a sigh of relief for investors, and stocks surged on Tuesday and Wednesday, though the S&P 500 is only up about 1% since we last wrote.
Stocks are still below their April highs, and down more than 8.5% year to date, but volatility is declining and it seems increasingly possible that a bottom was formed in early April.
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 30: What a difference a week makes. Just a week ago, the S&P was plunging back toward the low. But then the S&P rallied 4.5% and the Nasdaq soared 6.6% in the final four days of last week, erasing most of the index’s April losses.
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 April 29: This is a huge week for earnings and economic news. Maybe, just maybe, the market will be driven by something other than tariff news.
This week, 180 of the 500 S&P companies report earnings, including several of the big tech companies. On Wednesday, first-quarter GDP will be released. Jobs and inflation reports also come out this week. The consensus expectation for first-quarter GDP is 0.10%, way down from 2.4% in the fourth quarter.
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 2: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Agnico Eagle Mines (AEM), Berkshire Hathaway (BRKB), Intel (INTC), Kenvue (KVUE), Pan American Silver (PAAS) and SLB Ltd. (SLB).
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 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 Mike: Hi Mike. If it is OK, just writing my 2 cents’ worth here. In early March we experienced the drastic down in the market - the huge sell-off that occurs every so often on an event/news happening, where you can clearly see a bottom, where (when) the correction ends, then zig-zags up (think the end of February to mid-March 2020 covid drop as well). This is just a vote for gobbling up very undervalued leaders at that time, (like) the leaders you had recommended in past issues like Palantir (PLTR) - went down into the 60s, now over 100 again - or Robinhood (HOOD), etc. I know that sometimes you need to wait for the best leaders to reveal themselves thereafter, but this is a vote for “getting in” then.
At least if you buy up what you think will do well, you can always sell the ones that don’t move quickly to recover or show great strength/momentum shortly thereafter. Then at least you would own some really great leaders/stocks at fire-sale prices. I think investors would be miles ahead, i.e. get rich opportunities with those leaders/long-term holds (until the market dictates otherwise). I am not saying this is what you should recommend, just sharing my viewpoint that is best for myself (not that I did this for other reasons (although I wanted to), but what I thought would logically happen at the time). I’m personally looking forward to the next huge drop in the market to have the opportunity for some quick returns on long-term holds.
But meanwhile, I need to make a decision on what to buy in the next little while. I look forward to reading the email you just sent out.
Mike: So, it’s a fair point, and I hear what you’re saying – and many times that will work.However, first, as you said, you’re not really sure which stocks are the leaders.But second and more importantly, you’re making it sound way too obvious that we’ve hit a low point. Basically, what works often in the market tends not to work over time as the times it doesn’t work, it crushes you.That said, taking a stab at some SPY or QQQ or whatever if you’re heavy in cash, I can see that, when the market is very, very oversold. But many names looked “cheap” in early 2008 or even early 2022 and then fell another 50%. To each their own, though, you just have to be aware of the risks is all.