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CABOT EVENTS
Cabot Weekly Review (Video)
Today’s video has Mike Cintolo discussing the market’s hectic but positive week, as buyers continue to show up where they “should” for the market. Individual stocks have been trickier, including many highfliers that are undergoing tests of their uptrends, but Mike continues to think earnings season will tell the tale here, as there are tons of stocks with solid setups that could begin fresh intermediate advances if Q3 reports please big investors. 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!cv
Stocks Discussed: BE, IREN, APLD, VRT, CRDO, AVGO, LITE, HXL, MS, SNOW, MDB, SOFI, ZS, W, BOOT
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad talk earnings results from Tesla (TSLA), Netflix (NFLX), and Intel (INTC) and whether there are any big-picture takeaways early in earnings season. Then, they discuss the latest inflation report’s green light for continued Fed cuts, trade war fears subsiding, and whether the gold and metals implosion was anything more than profit-taking. Finally, they revisit meme stocks as Beyond Meat (BYND) and Krispy Kreme (DNUT) pop and the meme stock ETF (MEME) rises from the ashes. For more information about 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 23: WHAT TO DO NOW: The market continues to hang in there, but growth stocks have been far trickier, with many pulling back sharply, others testing support and a few breaking down. Still, it’s mostly mixed, with some names perking up, so we’re staying flexible, especially as earnings season plows ahead. This week we sold two names that cracked—MP Materials (MP) and GE Vernova (GEV)—which leaves us with 43% in cash. We’ll stand pat tonight, though we could redeploy some of the money into stronger names if growth stocks continue to stabilize.
Cabot Top Ten Trader
Weekly Issue October 20: After an ugly day October 10, the major indexes showed solid overall support last week, but under the hood was another round of volatile action, The market’s intermediate-term trend continues to tilt up, though we’re still taking things on a stock-by-stock basis and are closely watching earnings season, which is about to rev up. In the meantime, we’re just following the plan that’s been working for us: Being selective on the buy side, holding strong names (albeit with some partial profits on the way up) and also raising stops as time passes. We’ll again stick with a level 7 on the Market Monitor.
This week’s list is a mixed bag in terms of sectors and setups, with some we’re considering entering on strength and others on pullbacks. Our Top Pick is likely in for years of accelerating growth, and after a big run into early October, the recent pullback looks normal. We’re OK starting small here or on a bit more weakness.
Movers & Shakers October 24: It’s been another hectic but positive week in the market, with the major indexes pushing back to their prior highs or, in some cases, out to new high ground after this morning’s inflation report, albeit with another wobble in the middle of the week. Still, when looking at the evidence, the top-down measures remain positive.
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 23: Let’s talk about bubbles.
There’s been a whole lot of investor speculation of late over whether we’re near an artificial intelligence bubble, akin to what we saw from the dot-com bubble at the turn of the century or the housing bubble that led to the 2008-09 Great Recession. Indeed, with AI spending (an estimated $300 to $400 billion this year) outpacing revenue (an estimated $60 billion this year) by roughly a 6-to-1 ratio – about double the capital expenditures-to-revenue ratio just before the dot-com bubble burst – the angst over an AI bubble is understandable, and perhaps warranted.
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 22: Looking good. The bull market is enduring the historically troubling months of September and October with nary a sign of resistance.
The S&P 500 is up about 15% year to date and within a whisker of the all-time high, as investors are more excited about earnings than worried about tariffs or the government shutdown. And why shouldn’t they be? Government shutdowns are always temporary. And tariff negotiations always culminate in an arrangement that satisfies the market.
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 21: Stocks started this week on a strong note. After sluggish performance over the past month, the S&P 500 is gaining steam.
Investors are focusing on the promising earnings season and a tamping down of tensions with China. The Trump administration has moderated its stance on China and will meet with them in the weeks ahead. Meanwhile, earnings season is heating up with Tesla (TSLA), Intel (INTC), Netflix (NFLX), and Coca-Cola (KO) reporting this week.
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 24: One of the most attractive industries right now for turnaround-focused investors is chemicals, with the share prices for many major producers in this group hovering at or near multi-year lows.
The reasons for this collective underperformance vary, and while not all chemical companies are in a classic turnaround situation, many of them are under serious margin pressures and are implementing strategic plans aimed at improving their company’s fortunes and reversing the stock price declines.
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 Chris: AST SpaceMobile (ASTS): It went up like a rocket and now it’s coming back down like one. Are you holding on or selling?
Chris: Holding on. Quite the sharp drop but it’s still up 37% in the last month, to put it in perspective. That said, I advised selling half our stake a couple months ago when it first topped, so hopefully you booked some profits as well. But I don’t plan on selling the whole thing anytime soon – the drop is more market-related than anything the company did wrong.