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Cabot Prime Pro Week Ending April 5, 2024

Latest Summary


Cabot Weekly Review (Video)

In this week’s video, Tyler Laundon discusses how the big macro drivers of the market return - lower rates, solid revenue and EPS growth, and money on the sidelines - provide a decent setup for market returns over the next couple of years. Tyler also discusses the improving breadth of the market, and suggests investors begin to look for opportunities in pockets they may have previously missed. He flags small caps, energy, financials and even the IPO market as areas recently showing strength.


Cabot Street Check (Podcast)

This week on Street Check, Chris and Brad discuss Brad’s huge trading whiff, Tesla’s (TSLA) latest delivery numbers and the importance of matching your risk tolerance and investing style with the opportunities you see in the market. Then they dive into the “everything rally,” and debate whether clever ticker symbols actually offer an investing edge before talking about recent retail investor interest in leveraged funds and if/when they’re appropriate to add to your portfolio.

Cabot Webinar

March 26, 2024 12:00 PM ET

Capitalizing on the Bull Market: 4 Experts & Their Top Picks for April 2024

Watch Now

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from October 18, 2023 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 Pro member benefits.


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 4: Most of the evidence remains bullish, so we continue to hold our winners and selectively put money to work — but the fact is that most growth stocks have been chopping sideways overall for a month or two, so we’re OK holding some cash and waiting patiently for the market and leaders to show their near-term hand. Tonight, we’re booking a little more partial profits in one of our winners, but are standing pat otherwise and will follow the lead of the market—and of leaders—going ahead.

Bi-weekly Update March 27: WHAT TO DO NOW: Remain bullish, but continue taking things on a stock-by-stock basis. We’re seeing another round of sharp selling in many leading growth stocks today, though few (if any) have cracked meaningful support. To us, it’s another shot across the bow, not prompting any major moves but putting us on alert with certain names. In the Model Portfolio, we’re making one small move—selling 20% of our stake in CrowdStrike (CRWD)— while doing a quick flip on Celsius (CELH), placing it on Hold after last week’s half-position buy after today’s drop on news. Our cash position will now be 25%, and we’re keeping our eyes on a few names should the selling continue.

Cabot Top Ten Trader

Weekly Issue April 1: It seemed like the post-Fed action from two weeks ago may have paved the way for another leg up in the leadership, but while that’s not off the table, we’re continuing to see a lot of crosscurrents out there as money sloshes around. What does it mean? Not much yet, as the major evidence remains positive, but it’s best to continue to raise and honor your stops, while for new buying, make sure you’re focusing on names that are generally earlier in their moves. We’ll leave our Market Monitor at a level 8, but more than ever, it really depends where you look.

This week’s list has many names that are either just coming into favor or have tightened up nicely after prior runs. For our Top Pick, we’ll go back to the commodity theme, with a stock that’s toying with new highs despite the fact that natural gas is still at very low levels. We’re OK starting small here and adding if the buying continues.

Movers & Shakers April 5: It’s been a poor week for the market, with the big-cap indexes down in the 2% range coming into today, and broader indexes like small and mid-caps are off more, with growth stocks also lagging.

Cabot Options Trader and Cabot Options Trader Pro

Cabot Options Trader Pro Weekly Update

Cabot Options Trader Weekly Update

Cabot Value Investor

Monthly Issue April 4: After years of being either ignored or sold off, value stocks are finally having a moment on Wall Street. The Vanguard S&P 500 Value Index Fund (VOOV) is up 25% in the last five months and is actually outpacing growth titles over the last month. Still, it’s a bull market, and growth stocks are king. How to compete as value investors in a growth-minded market? By seeking growth stocks at value prices.

Today, we do just that, adding a household name that’s been rejuvenated thanks to a shift in industry trends. The stock is up 18% year to date, and yet its shares remain dirt cheap by virtually every measure.


Weekly Update March 26: It is with mixed emotions that I am writing my last Cabot Value Investor issue. My nearly four years as part of the Cabot team have been exceptionally rewarding. I have had the opportunity to work with an exceptional research team – who bring talent, dedication and investment results that readily match and likely exceed most Wall Street sell-side and buy-side analysts. Our Cabot analysts, despite their very different investing styles, have helped me become a better investor.

Cabot Stock of the Week

Weekly Issue April 1: Stocks keep rolling into spring on the heels of an excellent first quarter. Can the next three months match the previous three (or five)? Probably not. But bull markets don’t normally die of old age, and there are plenty of reasons to believe stocks will be higher by the end of Q2. With that in mind, today we add another beneficiary of artificial intelligence, though a company that’s not entirely dependent on AI. Instead, it’s one that’s found new life thanks in part to AI – similar to Microsoft (MSFT) when we added it to the portfolio a year ago. It’s been in Carl Delfeld’s Cabot Explorer portfolio for months, and today we welcome it to Stock of the Week.

Cabot Explorer

Bi-weekly Issue March 28: The bull market rages on, and technology stocks continue to garner most of the headlines, some of which we’ll examine today. But our new recommendation isn’t some go-go artificial intelligence play: it’s a small-cap U.S. titanium maker that’s off to a very fast start (+56%) in 2024 ... with plenty more runway ahead.

Bi-weekly Update April 4: The first week in April was quiet for Explorer stocks. Looking at what sectors are doing particularly well through the MSCI World index, technology and other cyclical sectors such as energy have outperformed.

Where are the bargains? Consumer staples, Europe, and perhaps even electric vehicle stocks. The EV slowdown can’t be denied – their first-quarter growth rate was a weak 2.7% vs. last year’s 47%. Hybrids vehicles are clearly preferred by many, and on the rise.

Cabot Small-Cap Confidential

Monthly Issue April 4: There is a growing mental health crisis going on out there.

But it’s starting to be addressed by a tiny, unknown (so far) company with a virtual care platform that’s beginning to make a difference across the U.S. And it’s doing so while growing both the top and bottom lines.

All the details are inside the April Issue of Cabot Small-Cap Confidential.

Weekly Update March 28: The story of the week in the markets has been that central bankers are still leaning toward cutting rates by mid-year (odds still favor a cut in June). That’s helped stocks do pretty well, with outsized performance in energy, banks, insurers and homebuilders.

I’ve been monitoring the performance of small-cap sector ETFs versus those of the comparable large-cap offerings. It’s been interesting to see small-cap financials, materials and industrials performing far better.

Cabot Dividend Investor

Monthly Issue March 13: The rich get richer. Now, you can too.

Growing businesses with big ambitions need large amounts of money to grow and expand to the next level. But these enterprises can’t get the necessary capital from stodgy and risk-averse bankers. And they are still too small to access the capital markets by issuing stock or bonds. Thus, they are forced into the domain of wealthy individuals and institutions that have money and are itching to reap high returns.

These venture capitalists provide desperately needed money to up-and-coming businesses that can’t get it anywhere else. Thus, they are in a position to negotiate very favorable terms for themselves.

As financial markets have grown in sophistication, venture capital investing is no longer the exclusive domain of the wealthy. There is a little-known class of security that enables regular investors to mimic the very same moneymaking strategies employed by the rich and famous. These securities are called Business Development Companies (BDCs).

In this issue, I highlight one of the most successful BDCs on the market. It pays dividends every single month, has a long and consistent track of raising payouts, and has delivered fantastic total returns.

Weekly Update April 3: It was a great first quarter. The S&P closed out March up 10% YTD. The index also rallied an impressive 28% from late October through the first quarter. Is there more upside ahead?

Things have been good. The Fed reiterated its intention to lower the Fed Funds rate three times this year at the March meeting. Meanwhile, inflation is way down and the economy is solid. Manufacturing data was much better than expected and the Fed raised its GDP forecast for 2024 from 1.4% to 2.4%.

Cabot Early Opportunities

Monthly Issue March 20: In the March Issue of Cabot Early Opportunities we spread things around with a diverse group of mid-caps, plus one large cap from our Watch List that’s one of the biggest stories in MedTech.

Cabot Profit Booster

Weekly Issue March 5 : As we plow into March, the overall story remains mostly the same for the market—the primary evidence remains strong, with the trends of the major indexes up, most leading stocks in good shape and with hundreds of stocks hitting new highs.

Cabot Income Advisor

Monthly Issue February 27: The Goldilocks scenario of falling inflation and a still-strong economy is unlikely to last. Interest rates will have to come down before long or the recession that the market is dismissing might be just a little further down the road. But recent higher-than-expected inflation is making lower rates less likely.

Sure, the rally could last for a while. The economy always seems to be more resilient than people expect. But the circumstances behind the rally since October are unlikely to last. This environment will change. For that reason, it doesn’t make sense to chase stocks that have been working so far this year. It’s better to position ahead of a new dynamic that is likely coming.

Change creates opportunity. There are many great income stocks that are not benefiting from this rally. Yet these stocks are selling at historically very cheap valuations with high yields. These stocks also can thrive in a slowing economy. In this issue, I highlight two stocks in particular that are cheap and high-yielding ahead of a period of likely market outperformance.

Weekly Update April 2: The market looks great. The quarter ended last week with the S&P posting the strongest first-quarter start in five years. All three major market indexes have now risen for five straight months.

The Fed said it still intends to cut the Fed Funds rate three times this year at the March meeting. Meanwhile, inflation remains subdued, and the economy is surprisingly strong. Manufacturing data was much better than expected and the Fed raised its GDP forecast for 2024 from 1.4% to 2.4%.

Cabot Turnaround Letter

Monthly Issue March 27: TThank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the April 2024 issue.

In this issue, we discuss the most effective and often the only way to reverse the fortunes of a struggling company: a change in leadership. We offer our views on four new CEO situations that are currently attractive and three that are not quite ready yet.

This month’s Buy recommendation, Barnes Group (B), is an aerospace and industrial components maker that is stepping up its efforts to become more valuable, helped by a new CEO and urged on by pressure from a credible activist investor that recently gained several board seats.

Weekly Update April 5:The next earnings season starts very soon, with Mattel (MAT) set to report on Tuesday, April 23.

Cabot Cannabis Investor

Monthly Issue March 27: Our main Cabot Cannabis Investor portfolio has vastly outperformed this year, with a 38% gain as of the March 26 close. That was 15 percentage points better than the 22.8% gain for the New Cannabis Ventures Global Cannabis Stock Index. We’ve done 31 percentage points better than the 7.1% gains this year in the S&P 500.

Our Cabot Cannabis Plus Insider Portfolio is up 42.6% since I launched it on March 29 last year. That’s more than twice the 16.8% gain in the Russell 2000 index over the same time.

Monthly Update March 13: Since I last wrote to you on February 28, cannabis stocks have fallen nearly 14%, using the AdvisorShares Pure U.S. Cannabis (MSOS) as a proxy for the group.

There are certainly good reasons why “the doubts” have crept back into the minds of cannabis investors, which I will explain in a second. But my take is that by now, the concerns may be fully priced in, so the group looks like a solid buy.

Cabot Money Club

Monthly Magazine April: Artificial intelligence (AI) is everywhere these days, and personal finance is no exception. In this month’s issue we’ll dive into the next generation of personal finance apps, the new tools available to savers and investors, and how to deploy them in your daily lives to optimize your financial wellbeing.

Stock of the Month March 14: The markets saw mostly sideways action in the past month—the soothsayers are still debating when the Fed will begin reducing interest rates.

Growth stocks held on to their leadership position, although value stocks are beginning to show life in 2024.

Ask the Experts

Prime Question for Jacob: How would you recommend using the Daily Option Order Flow Watchlist to make trades on my own?

Jacob: I think the best way is to stick to my general rules. If you are looking to buy calls based on the trades you see on the Watchlist, which are made by hedge funds and institutions, then you should target:

Calls that are at-the-money

Calls that have 6-9 months until expiration.If you stick to that playbook, and like the set-up in a stock on my daily watch list, in a strong market, it is your best trade for success.