The market’s main trend remains up and thus I continue to recommend that you be heavily invested, always working to “upgrade” your portfolio by selling weak stocks and buying healthier ones.

Today’s recommendation is a well-known big technology stock that’s spent the past eight months going sideways, despite the fact that revenue growth has been accelerating. To me, it’s a very attractive setup.



As for our current holdings, there are no changes. After selling two stocks last week, everything looks good today.



Details inside.

We continue to see more and more setups among growth stocks, but overall, the market remains in a spin cycle, with few stocks letting loose on the upside and incessant rotation among stocks and sectors. With the recent rally running into trouble, we cut bait with DraftKings (DKNG) earlier this week, but are willing to give the rest of our names some rope as we head into earnings season. Get all our latest thoughts on our stocks and our latest watch list in tonight’s issue.

In the April Issue of Cabot Early Opportunities we take a look at the red-hot real estate market and muse on the dramatic and lasting impacts from the Covid-19 pandemic.

We also take hints from the market’s action that it continues to be a time to focus on diversifying new buys across different markets. We take this evidence to heart and add five stocks that offer exposure to everything from resort travel to Afib surgical tools to digital transformation services.



Enjoy!

April was another strong month for the Cabot Profit Booster portfolio as we locked in gains ranging from 3.7% to 7.9% on our six positions. Speaking of earnings, this week’s pick is a recent earnings season winner that busted out to a new high following reporting quarterly results.

Current Market Outlook


Growth stocks are still in mostly good shape, which is the good news. And while we see reasons for continued optimism, it’s also hard to be a raging bull right now. There’s quite a bit of rotation underway, and sentiment is still elevated. On top of that, the number of Nasdaq stocks making new lows is more than we’d like to see, which means cross-currents could become a factor in the near term. Still, the weight of evidence prevents us from being overly cautious; plus there are a fair number of nice-looking setups in individual stocks across several industries. With this in mind, we’re leaving our Market Monitor at level 6 for now.

This week’s list includes a mix of growth and cyclical themes, most of which have a solid story.
Our Top Pick is Nvidia (NVDA), an established semiconductor name with a growing presence in the soaring high-performance computing (HPC) market, and which has just broken out to new highs on strong volume.

Stock Name	Price	Buy Range	Loss Limit
ArcelorMittal (MT)	30	29-30	25.5-26
Brooks Automation, Inc. (BRKS)	98	92-97	80-82
Jabil Inc. (JBL)	54	52.5-55	46-47.5
JetBlue Airways Corporation (JBLU)	20	19-20.5	17.5-18
KBR Inc. (KBR)	40	38.5-39.5	33-34
Levi Strauss & Co. (LEVI)	28	27-28	23.5-24
NVIDIA Corporation (NVDA)	614	595-615	550-555
Snap-On Inc. (SNA)	236	230-235	208-210
Square, Inc. (SQ)	245	240-243	210-212
Vale S.A. (VALE)	19	18.5-19.5	17-17.5

Recent crosscurrents in the market have seen changes among sector leadership, and today we have a broad selloff, but overall, the main trend of the market is up and thus I continue to recommend that you be heavily invested.

Today’s recommendation is an attempt to benefit from sector rotation, by targeting a sector that’s still down; if the sector turns up soon, today’s buyers should profit handsomely.



As for our current holdings, two stocks are upgraded to buy today, while two are downgraded to sell as we cut our losses short. The adage that applies: There’s nothing wrong with being wrong; what’s wrong is staying wrong.



Details inside.

Editor’s Note: For most of its run, Chief Analyst Carl Delfeld has referred to the Cabot Global Stocks Explorer advisory by its short-hand name, “The Explorer.” So we figured we’d join him! We have decided to shorten the name of this publication to simply, “Cabot Explorer.” The product won’t change at all. This merely puts more emphasis on the purpose of this advisory, which is to “explore” for new, often hard-to-find stocks and sectors ready to break out - regardless of market. Enjoy!

Markets seem to be paying more attention to valuations and looking to confirmation from earnings that the economy is moving to growth mode. Stocks are likely to churn a bit for a while after their great uptrend in the last year. We’ll discuss today why SPACs have cooled a bit even as they spread to Asia, and present a new idea to watch which offers huge growth potential but may be a bit pricey.

Here is your April Wall Street’s Best Digest issue 840.

I love spring! You may not know this but I’m a Master Gardener, which means when the Bradford pears, Forsythia, and Redbud trees come into bloom, I am just a happy camper!



And this year, with the end of COVID almost in sight and the economy in recovery mode, I feel very optimistic. And as you can see from our Market Views and our Advisor Sentiment Barometer, our contributors are considerably bullish.



Our Spotlight Stock this month, exemplifies that optimism, as we are recommending one of the nation’s top home builders. Certainly, its shares have been driving upwards, but we feel there is much more room to grow.



In Growth, you’ll find a variety of ideas, from the airline, gaming, automobile, yacht, and online education sectors. In Growth & Income, our advisors offer recommendations from the shipping, restaurant, RV, and engineering industries.



Value stocks are finally finding their moments of sunshine, and here we like an aircraft manufacturer and an aerospace and defense contractor. Financial companies are also rebounding, like these asset manager, insurance, and banking businesses. In Healthcare, our contributors favor a technology and an animal healthcare company that is in the midst of a turnaround.



Our Technology offerings include an e-commerce and a semiconductor company. This month, you’ll also find several ideas in the Resources and Energy section. And in Low-Priced Stocks, we offer a couple more speculative companies, coming from the cannabis and marketing sectors.



In REITs and Preferred Stocks, our contributors find financial and self-storage interesting this month. And lastly, our Funds & ETFs section includes some income, small-cap value, and healthcare ideas.



Don’t forget to register for my monthly webinars, along with Kate Stalter, my partner on the Wall Street’s Best Stocks and Wall Street’s Best ETF newsletters. And we’ve begun sending out invitations for our August 17-19 Summit, entitled Smarter Investing, Greater Profits. You can register here.



Please don’t hesitate to send me your feedback and questions. My new email address is nancy@financialfreedomfederation.com.

The big news this week is that we: (1) recovered some of last week’s losses and (2) have a notable acquisition in the small cap cloud software space.

The market has been bouncing decently during the past four trading days, but our Cabot Tides remain clearly negative and most growth stocks are still in steep corrections. Longer-term we’re still optimistic the bull market will eventually resume, but until then, we’ll be patient. No rating changes to the portfolio tonight.

We’ve had a fierce six-day selloff, but the market has managed to find support and is rebounding this week. But I still advise caution as things are still dicey. Most of the positions in our portfolio are on Hold, but we’re adding one more to that list and selling half of one our weaker positions.

As earnings season unfolds, I’ll be very interested to learn more about the broader capital expenditure landscape. Americans haven’t experienced such a strong economy in many years. And frankly, younger adults have never experienced a strong economy!

I want to cover three things today: (1) possible reasons behind the stock market swoon, (2) what to expect over the next couple of months, and (3) what opportunities to look for both within and beyond our current portfolio.

The headline-making meltdown in U.S. stock markets on Wednesday, when the Dow fell 3.2% and the S&P shed 3.3%, made it clear that investors aren’t just worried about emerging markets.

The yield on the 10-year Treasury hit its highest level in seven years and remains elevated as this week progresses. This interest rate surge has created some unusual ripple effects across growth stocks, utilities, financials, and energy stocks. Thankfully our diversified portfolio is doing well so far and we have no rating changes, but the overall market might lead to some defensive moves in the future.

Stocks are churning in place, appearing unsure of how to proceed this month. The Dow Jones Industrial Average finally retraced its January 2018 record high. Will it advance promptly or establish a trading range? If we look back to recent patterns on the S&P 500 index, which retraced its January high in August, and we presume that the Dow might follow suit, then we’re in for some sideways trading on the Dow.

The iffy action we saw among growth stocks in September has turned into a severe selloff so far in October. Our Cabot Tides are still neutral, but we have to be cautious given the recent volatility. We did some selling yesterday so no further changes tonight.

The stock market managed to tread water for most of September but we’re seeing some renewed rotation as we start October. Selling is prevalent in growth stocks the past two days but the portfolio is holding up just fine with the short-term volatility. I have two ratings changes, moving one position to Hold and putting one back on Buy.

Big picture, things still look reasonably good out there. That said, we’ve seen persistent, but not severe, weakness in small-cap stocks since the beginning of September.

The iShares EM Fund (EEM) has climbed back atop both its 25- and 50-day moving Buy signal from the Cabot Emerging Markets Timer.

Our second recommendation is profit-taking due to a buyout.

Our first idea is an oil company that is expected to grow more than 13% this year and has a current annual dividend yield of 5.55%, paid quarterly.

Not a lot has changed since last week’s issue—overall, the cannabis sector remains in a correction—but there are a few stocks worthy of an update.

In the past 30 days, 17 analysts have raised their EPS estimates for this medical device company.

This preferred stock is backed by one of the largest banks in the U.S.

The shares of this healthcare information services company were just upgraded by Guggenheim to ‘Buy’ and seven analysts have increased their EPS estimates for the company in the past 30 days.

Small caps have been lagging, and have failed to return to their 2018 highs, for too long. If the asset class can get back in gear, we’ll have more things working in the market for early-stage investors.

Small caps have been lagging, and have failed to return to their 2018 highs, for too long. If the asset class can get back in gear, we’ll have more things working in the market for risk-tolerant investors (that’s us!).

This retail stock reported fiscal 2020 third quarter results (January year end).

This RV manufacturer beat analysts’ earnings estimates by $0.27 last quarter.

This is a short week but I wanted to give you some news on a couple of my recommendations that have been making news.

In the past 30 days, 11 analysts have raised their earnings estimates for this defense technology company.

Our Cabot Top Ten Trader’s market timing system consists of two parts—one based on the action of three select, growth-oriented market indexes, and the other based on the action of the fast-moving stocks Cabot Top Ten features.