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CABOT EVENTS
Cabot Weekly Review (Video)
There’s been a lot going on over the past week, and Mike Cintolo dives into all of it in today’s Cabot Weekly Review -- from his thoughts on the overall market (still hanging in there but on the edge) to individual stocks (some cracking but many holding) to earnings season (many setups ... if the buyers decide to plow in). Get all of his latest thoughts on the market and many leaders here. If you don’t already subscribe to Mike’s Cabot Growth Investor, here’s your chance to get in at a special price—for new subscribers only!
Stocks Discussed: LITE, NVDA, AVGO, WDC, VRT, PLTR, SNOW, NET, KRMN, ARGX, ALNY, MDGL
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the U.S. trade war with China, earnings season kicking off as banks report, and Bitcoin vs. gold as a market hedge. Then, they welcome on Tyler Laundon to discuss small-cap stocks, the catalysts driving outperformance in the Russell 2000, and the importance of lower rates for small caps. For more information on this week’s 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 October 16: Depending on how you want to measure it, the overall market is currently in the fourth test of the post-April uptrend, with the re-flaring of U.S.-China trade tensions late last week leading to a 3.2% decline (in line with the other dips), taking the S&P 500 down to its 50-day line before this week’s volatile bounce. The question, of course, is whether this retreat is the start of the market’s first “real” correction of the advance ... or another shakeout that will give way to an upside run.
Bi-weekly Update October 9: WHAT TO DO NOW: The market’s trends remain in good shape, though the broad market is still a bit iffy and growth stocks are up and down—though, encouragingly, we have seen some solid snapback action this week, with a few names we own and are watching re-testing resistance. All told, the plan remains the same: Give our names some rope and look to add exposure in names as they get going, all while being selective. Tonight, we’re placing AppLovin (APP) on Hold due to its news-driven air pocket, but we’re adding another 3% stake in Arista (ANET), which is perking up. Our cash position will be around 29%.
Cabot Top Ten Trader
Weekly Issue October 13: While the market has remained generally healthy, there have been a few shots across the bow in recent weeks, and last week was another, with Friday’s big selloff on China tariff fears hitting just about everything out there, including the broad market, though today’s bounce took some sting out of that. Overall, after six months with hardly any pullbacks and with the broad market having waved a yellow flag a couple of weeks ago, the market could easily be ready for a “real” correction—however, anticipating such a decline isn’t advised, and while it’s close, the intermediate-term trend remains up and, frankly, most leadership (mostly Top Ten) stocks have been acting relatively well. Don’t get us wrong, our antennae are up and we continue to advise being selective, but we’re mostly focused on the next few days: A strong bounce in leaders and the indexes would be positive, but a break of last week’s lows would likely usher in a volatile, corrective period. For now, with most of the evidence unchanged, our Market Monitor remains at a Level 7
This week’s list has something for everyone, though it’s again full of more growth-y titles. Our Top Pick is part of the newly strong solar group, whose stock is strong and actually rebounded to a new high today. Aim for dips if you want in.
Movers & Shakers October 17: It’s been an eventful past week, with the market tanking last Friday on a flare-up in U.S.-China trade tensions, followed by a volatile-but-solid bounce for a couple days, only to see renewed distribution pop up again yesterday as bad debt fears take hold among financial stocks. All told, the indexes are up nicely on the week (though still flat to down if you include last Friday’s hiccup).
Cabot Value Investor
Monthly Issue October 2: Remember fintech? It was one of the biggest buzzwords on Wall Street a couple years ago until AI came in and gobbled up all investors’ attention. But the nascent sector never stopped growing, and now share prices are well below their apex as investors have largely ignored the sector the last couple years. In fact, this month’s new fintech addition to the Cabot Value Investor portfolio has almost never been cheaper since coming public in 2020. And yet, the company is still expanding both sales and earnings by more than 25% annually.
It’s a classic growth-at-value-prices story. And we think it has 45% upside in the short-to-intermediate term. Details inside.
Weekly Update October 16: Volatility is back, with the VIX spiking above 20 for the first time since early August and above 21 for the first time since June.
Tariffs are the reason. Specifically, escalating tariff rhetoric between the U.S. and China, which spooked the market into its worst one-day selloff since April last Friday, and has prompted wild intraday swings every trading session since. So far, the damage to the major indexes has been fairly limited (the S&P 500 is less than 2% off its highs, as of this writing), but under the surface, a few yellow flags have emerged, including the number of 52-week lows among NYSE-listed stocks topping the magic number of 40 (it’s up to 63) that typically precludes a more pronounced market pullback. We’ll see how much the just-underway third-quarter earnings season can act as a yin to tariffs’ yang and hopefully provide a relatively high floor for stocks in the coming weeks. As I wrote in this space last week, that may depend on whether companies can cross the relatively high bar of 8% earnings estimates.
Cabot Dividend Investor
Monthly Issue October 8: After spending most of the summer making a series of new highs, it’s been more of the same so far this fall.
The drawback is that the market is high-priced. Technology stocks, driven by the AI catalyst, have driven stocks higher. But certain sectors have not had a great year. Despite the impressive performance of the overall market over the last few years, there are still bargains to be found.
The real estate sector struggled during inflation and rising interest rates and has been the worst-performing sector over the last five years. Healthcare has floundered all year because of uncertainty regarding tariffs and new pricing policies from Washington. It has been the second-worst-performing market sector over the last year.
But things are turning around in both beleaguered sectors. The Fed started cutting the fed funds rate again in September and two more cuts are expected this year. The long-anticipated issues in the healthcare industry have revealed themselves. And it doesn’t seem nearly as bad as feared. As a result, healthcare stocks had the strongest weekly rally in more than 20 years.
In this issue, I highlight a REIT that specializes in healthcare properties. It has a stellar track record of performance and has among the fastest earnings growth among REITs. It also pays a strong dividend yield and will likely benefit in the months ahead from a rally in either sector.
Weekly Update October 1: The market continues to hover near the high. The S&P is up over 13% year to date and about 38% from the April low.
Cabot Early Opportunities
Monthly Issue September 17: With a big Fed meeting on tap for this afternoon, we’re continuing to maintain a steady pace of adding new positions, selling off some weaker ones, and adding fresh names to our Watch List.
Details on all of the above are included in this September’s Issue. Enjoy!
Cabot Income Advisor
Monthly Issue September 23: The market looks great. But the indexes are teetering around the highs while uncertainty is still swirling around.
Fortunately, some of the highest dividend paying stocks are still reasonably priced ahead of an increasingly promising future. Midstream energy stocks have been flying under the radar while paying some of the highest dividends on the market. These stocks are also well suited for whatever lies ahead.
Midstream energy stocks have provided a high income and a solid return throughout most market cycles. And that makes them ideal for the current unpredictable environment. But that was before. Things are changing for the better. The environment for energy is undergoing a radical transformation that could make these stocks better than ever before.
The growing demand from utilities and exporters will provide an unprecedented runway for growth in the years ahead that historical performance doesn’t reflect. In this issue, I highlight one of the very best midstream energy companies on the market.
Weekly Update October 7: What shutdown? What tariffs? The market couldn’t care less. It just keeps moving higher.
After making a series of new highs throughout the summer, the S&P had a great September. October looks good so far, too. Stocks are being driven higher by technology and the artificial intelligence trade. The technology sector is up 9% over the past month.
Cabot Turnaround Letter
Monthly Issue September 24: My modus operandi when writing the monthly version of the Cabot Turnaround Letter is to focus solely on a single stock when making a purchase recommendation. And in keeping with that spirit, I’ll be doing the same in this month’s edition of the newsletter. But I will also highlight two additional stocks with what I see as having excellent mid-to-long-term turnaround potential.
Weekly Update October 17: The introduction of fear to the financial market can be either a good thing or a bad thing—but seldom is it neither.
In the first case, increasing fear among investors in an environment characterized by fairly limited public participation (i.e. an uncrowded market), relatively unstretched valuations and plenty of liquidity often results in the “wall of worry” phenomenon in which stocks actually benefit from the rising fear levels.
Cabot Money Club
Monthly Magazine October: Insurance costs have been rising for years, even rapidly outpacing inflation in many areas, and households are feeling the pinch of higher prices. This month, let’s take a closer look at why the costs to insure your home and autos are rising and what you can do about it. We’ll explore who’s paying these higher prices, comparison shopping for new or replacement policies, and the other steps you can take to keep your costs manageable.
Stock of the Month October 9: The markets don’t seem too swayed by the government shutdown, as they continue to remain near all-time highs.
Economically speaking, we’re not getting some reports, like inflation or unemployment, due to the shutdown. But manufacturing seems to be holding up; real estate prices continue to moderate (up 1.8%); existing home sales were down 0.2%; and consumer confidence dipped a bit. Not much to rattle the markets.
Ask the Experts
Prime Question for Tyler: Hi Tyler, I hope your week is going well. I have a question regarding Primoris Services Corp. (PRIM), which you added to the watch list last month. I am curious as to your thoughts on PRIM. It’s still on the watch list. Any thoughts on this one?
Tyler: I still like PRIM and was close to adding it. I held off mainly because I wanted to get four new ideas out (TIGO, TFPM, LIF and KRMN) which left only one slot open to pluck from the Watch List. Unity (U) earned it because there’s a decent chance that story still isn’t really known (not many analysts are super bullish on it) which, hopefully, translates to significant upside if the bullish case starts to pan out. So at the end of the day it was just trying to prioritize names. Nothing wrong with PRIM at all, from my perspective. Others in space, including STRL and AGX, are also acting well.