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CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Tyler Laundon talks about the market’s continued strong performance and some of the big picture themes from the last week, from AI to the government shutdown. Tyler previews what’s expected from the upcoming earnings season, as well as where investors see the Fed taking interest rates at the last two meetings of 2025. Tyler wraps up the video with ten stock that are acting well, including a few bank stocks and coal stocks, two areas getting more coverage from Wall Street analysts. If you don’t already subscribe to Tyler’s Cabot Small-Cap Confidential, here’s your chance to get in at a special price—for new subscribers only!
Stocks Discussed: CENX, BKSY, OUST, METC, HCC, CADE, CFG, TEM, SYM, SERV
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the government shutdown and when it might matter to investors, warnings of a 30% correction from Jamie Dimon, the strong performance of gold, and the selloff sparked by new tariff threats from the White House. Then, they make a series of head-to-head picks on everything from cannabis and AI to Netflix (NFLX) vs. Amazon (AMZN), healthcare vs. real estate, and Halloween vs. Friday the 13th. 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 Plus 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 2: The market remains mostly in the same position it has been, with the big-cap indexes trending nicely higher and, based on historical studies, the outlook for the indexes very bullish looking out 3 to 12 months. That said, the broad market is borderline iffy (our Two-Second Indicator is negative) and the chop factor is still with us for growth stocks, so we’re still not cannon-balling into the pool ... though we do see many setups (as so many stocks have marked time for the past 1 to 3 months) out there. Tonight we’re adding another new half-sized position but are still holding about one-third in cash as the next couple of weeks will be telling.
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 6: The market’s uptrend continues, but as has been the case for many weeks, it’s somewhat tricky out there, with news-driven moves, selling on strength, the occasional bout of rotation and potholes—all while large swaths of the market are doing a lot more chopping than trending. That’s not “bad,” per se, but it remains a selective environment: We continue to take things on a stock-by-stock basis, focusing on strong names that are ideally fresher in their uptrends, while also being active with portfolio management. We’ll again leave our Market Monitor at a level 7.
This week’s list again has a heavy growth component, and not all are in the AI realm, which we find encouraging. Our Top Pick is a blue chip e-commerce name that, after a couple of false starts, looks like it’s ready to move.
Movers & Shakers October 10: It’s been a bit of a mixed week, with the big-cap indexes chugging slightly higher coming into today, up 1% or less. But the broad market—which has been lagging—took a couple of lumps, with small- and mid-cap indexes off more than 1%.
That keeps the current situation in place: The trends of the major indexes are still pointed up, and the big picture remains bright—but near-term, the broad market has started to diverge, not just among the indexes (the S&P 600 Smallcap and S&P 400 Midcap are close to their 50-day lines) but also under the surface, with the number of stocks hitting new lows continuing to remain too high for comfort.
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 9: Third-quarter earnings season gets underway next week, and expectations are high. Economists are expecting 8% earnings growth among S&P 500 companies, according to data compiled by FactSet. It would be the eighth consecutive quarter of at least 8% profit growth among U.S. companies – perhaps the biggest reason stocks have been on a tear the last two years.
Cabot Stock of the Week
Weekly Issue October 6: Stocks keep reaching new heights, as last week’s concerns about the market starting to show cracks under the surface seem to have been overblown, at least in the near term. Third-quarter earnings season gets underway next week, and expectations are high again, with economists expecting 8% growth. Companies may have to exceed those lofty expectations to keep this rally going. For now, though, the market is rolling.
To account for some possible bumpiness ahead, however, today I’m adding a big-name value stock to our portfolio. It’s one that I recommended to my Cabot Value Investor audience last month, and it’s already off to a fast start. It’s a company that thrives when the global economy is sound – which it is, despite myriad fears to the contrary.
Details inside.
Cabot Explorer
Bi-weekly Issue October 9: Gold hit $4,000 an ounce and the signal this is sending is not hard to grasp.
Investors are enjoying stock gains but are hedging downside currency and stock price risk as well as a hedge on growing government debt and geopolitical risk. Gold seems the most popular safe haven as it is viewed as a safe harbor asset in a way that the greenback used to be viewed. Gold’s rally began almost three years ago, fueled by central banks and Chinese investors leery of both its stock and property markets.
Bi-weekly Update October 2: This week, about half of the Federal government shut down, causing stocks to waver and gold prices to spike due to uncertainty over how and when the budget duel might end. There are few winners in this tug-of-war scenario. This is not a good time for this showdown given weak business spending, a weak dollar, and weak job growth. The market normally takes these political fights in stride depending how long they last. Stay positive but cautious, and as always look for some profits to take off the table.
Cabot Small-Cap Confidential
Monthly Issue October 2: Today we’re wading into the sports betting market, which is evolving into a duopoly where two players hold most of the data that provides a vast network of sportsbooks access to the world’s biggest sporting events.
There is, however, more to the story than just placing a wager on your favorite team.
The October Issue of Cabot Small-Cap Confidential explains it all, and which of these global tech companies we’re teaming up with.
Weekly Update October 9: The S&P 500, Nasdaq and Russell 2000 are all up modestly compared to a week ago, while the S&P 600 is roughly flat.
Between the two small-cap indices, the Russell 2000 has been the stronger performer lately. It has a higher proportion of more speculative, lower quality stocks (i.e., those with lower or negative earnings), which have attracted more attention than the comparatively higher-quality (i.e., those with higher or positive earnings) stocks in the S&P 600 index.
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 Profit Booster
Weekly Issue October 7: Despite the worries surrounding the government shutdown the market continued its winning ways last week as the S&P 500 and Dow both rallied 1.1%, and the Nasdaq added 1.3%.
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 10: In a raging bull market that has benefited virtually every one of the S&P’s 11 sectors, the conspicuous laggard among them has been the consumer staples.
The staples sector is down 2.4% year-to-date, compared to positive net returns on the other 10 sectors. Leadership in recent quarters, which is illustrated in the following chart, includes: info tech (up 13%), communications services (up 12%), consumer discretionary (up 10%) and utilities (up 8%).
Cabot Cannabis Investor
Monthly Issue September 24: While investor-friendly cannabis reform marches ahead at the state level, it’s still a “wait and see” game in Washington, D.C.
Rescheduling by the Trump administration remains the big potential near-term federal catalyst. If it happens, it will be a “sell the news” event for at least part of your cannabis exposure over the subsequent two or three trading days, for these reasons:
Monthly Update October 8: While President Donald Trump hangs fire on rescheduling cannabis, we continue to get signs that support what I call the inexorable march towards greater acceptance of cannabis use and legal reform that will help public companies in the space.
We see momentum for cannabis acceptance and reform in: Ongoing federal-level evidence that Trump may actually follow through on his campaign promise to reschedule cannabis; ongoing robust state-level sales growth; opinion polls; and scientific evidence that cannabis has medical benefits.
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 Mike: Hi Mike. What is your take on the huge rally, a.k.a. “melt-up,” in the market? I see most of your Top Ten stocks are on fire and I haven’t seen this many green ticks in a long time. While I am enjoying the new gains I am now getting slightly nervous if you think it is time to lock in gains especially when I start to see 15% gains (some) days?
Mike: We have been booking some profits and partial profits on the way up — the rally could possibly keep going, but we’ve obviously had a good move so I would think about risk tolerance here and consider shaving off portions of a few stocks. If they keep going higher, great, but if not, at least you sold some up here. As well, we’d be hiking stops and trailing them, as we’ve been doing in Movers and Shakers.
If you really want to just cash out, there’s nothing “wrong” with that, but you could have said that two weeks ago and names continue to move higher. Obviously, at some point the party will end, but that’s how it goes with the market — but we do think taking a few chips off the table on the way up makes sense while trailing stops.