We are entering what could be the slowest week of the year for the earnings calendar.

However, that can’t be said for the macro front, as it will be an eventful week headlined by the Bureau of Labor Statistics’ release of the November Consumer Price Index. Investors will not only be hyper-focused on the headline inflation index but also the FOMC announcement and subsequent press conference with Fed Chair Jerome Powell on Wednesday.

Once again, the sellers stepped in last week and at least in the short term dented the bulls’ optimism. By week’s end the S&P 500 had fallen 3.35%, the Dow had lost 2.71%, and the Nasdaq had declined by 3.57%.

Once again, the sellers stepped in last week and at least in the short term dented the bulls’ optimism. By week’s end the S&P 500 had fallen 3.35%, the Dow had lost 2.71%, and the Nasdaq had declined by 3.57%.

The good news is that it seems that the markets are back on track, although we remain cautious.

Economic statistics continue to be strong, with factory orders and consumer confidence better than analysts expected. Home prices have moderated somewhat, although interest rates and the continuing lack of inventory are not helping that market.

Starting next week, you will receive your Cabot Undervalued Stocks Advisor issues and updates on Tuesdays instead of Wednesdays. So look for next week’s update in your email inbox a day earlier, on Tuesday, December 13.

Thank you for subscribing to the Cabot Undervalued Stocks Advisor. We hope you enjoy reading the December 2022 issue.

While we are not market or economic forecasters, we try to make sense of what is going on. As we’ve commented on in earlier notes, we may be seeing the return of the long-forgotten inventory cycle. If we’re right, this is the time to buy over-discounted and reasonably healthy cyclicals like the ones on our recommended list.

Our letter comments on Big Lots (BIG) earnings, our price target reduction to 25, and why it remains a Hold rather than a Sell.

After a negative start to the week last Monday, the market surged higher on Wednesday, following what many traders view as a “less hawkish” speech by Federal Reserve Chairman Jerome Powell.

All in all, the evidence has continued to show some marginal improvement in recent weeks among individual stocks, plus, some top-down measures (long-term trend, health of the broad market) are looking better … but not quite enough for green lights. All in all, what we’re seeing are steps in the right direction—the market and many individual stocks are doing what they have to in order to repair the damage. But we still need to see continued progress to really extend our line, as little is being sustained on the upside. We’ll again keep our Market Monitor at a level 5.

This week’s list is a hodgepodge of names from different sectors and in different positions in their charts. Our Top Pick is a biotech name that, after many stops and starts, looks to have finally broken out on the upside.

The market continues to improve, so we’re only adding – not subtracting – to the Stock of the Week portfolio again today. Our latest addition is a very recognizable technology name that was once a market darling but has fallen on hard times in recent years. Now it’s starting to show signs of life again, and our Bruce Kaser thinks it’s a prime turnaround candidate. Perhaps it will make like another big turnaround story in our portfolio that’s hitting new all-time highs today…

There really isn’t much to say at this juncture. All of our positions are in good shape at the moment and my goal, as stated last week, is to add a few short-term positions to the mix. I’ve been hesitant to add short-term positions over the past few months due to the ongoing market environment, but if we could see a slight pullback this week, I think we might just be in business for a few new trades. Here’s hoping!

We are officially in the earnings doldrums, but that certainly doesn’t mean that opportunities won’t present themselves. For instance, this week Costco (COST) announces earnings after the close Thursday and offers a decent opportunity for an iron condor and potentially another candidate for a short strangle.

We locked in another winning trade last week. Our IWM iron condor had pushed to $0.24 so we decided to lock in over 50% of the original premium sold for an 11.4% return. The trade marked the 15th out of 16 winning trades for the service since we started Quant Trader back in June. If all goes well this week, we should be able to add to our winners by locking in our December bear call spread.

After a negative start to the week last Monday, the market surged higher on Wednesday, following what many traders view as a “less hawkish” speech by Federal Reserve Chairman Jerome Powell.

The summer malaise is in full swing. The market is doing pretty much exactly what it was doing when investors went on vacation and stopped paying attention.

I’m fairly active on Twitter; it’s probably my favorite site. It’s entertaining and a great way to stay on top of news. And it’s an incredible resource for finding new stock ideas. I can say with confidence that Twitter has made be tens of thousands of dollars. The one problem with Twitter is there is a lot of noise.

The Cabot Undervalued Stocks Advisor is on vacation this week, recharging the batteries for what could be a very interesting September and fourth quarter in the financial markets. As such, this week’s edition will be abbreviated in length, although we include our Cisco earnings commentary in full.

The broad market making new highs this week gives us a bullish framework to work within. For the sectors that comprise most of Greentech, it’s a mixed bag, however.

Today’s note includes earnings updates on Macy’s (M) and the podcast. There were no ratings changes this past week. Also, a few scheduling changes as the CTL is on vacation next week.

Near the close today, the Dow was off 50 points, the Nasdaq was up 23 points, with both finding solid support after a weak open.

Some time ago, there was a television show with the above title that pulled viewers back into the 1970s. It used that earlier era to create a somewhat unique vibe that inadvertently highlighted how much has changed in our world over the decades.

Things are still good in the market. The S&P 500 closed at yet another record high on Monday. That index is now up 19.27% so far in 2021 after managing to return 15.76% in pandemic-stricken 2020.

It’s a funny market out there! The market is pretty close to an all-time high, but many growth and micro-cap names have pulled back substantially. Many value names and cyclical names have pulled back sharply despite strong fundamentals. I continue to scour the micro-cap world and see plenty of opportunity.

The late, great market timer Joe Granville was famous for saying that “the obvious is obviously wrong.” In the wake of gold’s recent plunge, many participants wondered if perhaps that might be the case for the widely held belief that the Delta strain of the coronavirus will lead to economy-slowing restrictions this fall.

Last week, we received some news that Medexus (MEDXF) received a complete response letter from the FDA which will delay ultimate approval for Treosulfan.

Today’s note includes ratings changes, earnings updates on six companies and the podcast.

This closed-end fund focuses on high-yielding debt (income).

In the past 30 days, five analysts have increased their EPS estimates for this benefits management company.

Wednesday has witnessed some mixed action among the key metals, with liveliness in silver, weakness in copper and platinum and exceptional strength in steel.

The good news this week is that the state of Connecticut appears close to marijuana legalization, as the state Senate passed legislation early Tuesday morning, with an unexpectedly close 19-17 vote. Today—the last day of the 2021 session—the bill heads to the House of Representatives, which is expected to approve it. But you never know.

This insurance company beat analysts’ earnings estimates, posting EPS of $6.11, compared to the estimate of $3.87. The shares have a current annual dividend yield of 2.38%, paid quarterly.

Earnings estimates for this auto seller have risen by 35.7% in the past 60 days, with the June quarter EPS now expected to come in at $2.58.

Moving Biogen (BIIB) from BUY to SELL.

We are initiating coverage of Organon (OGN) with a BUY rating.

This afternoon we are making four ratings changes:

This food company beat Wall Street’s earnings estimates by $0.08 last quarter. Its shares boast a current annual dividend yield of 1.98%, paid quarterly.

Despite beating sales and earnings estimates for the quarter ($6.48 billion vs. $6.41 billion and $1.60 per share, compared to the estimate of $1.40 per share), shares of this discounter fell, due to forecasted rising freight costs—a good opportunity for entry.

In the past 30 days, 10 analysts have increased their EPS forecasts for this energy company. The shares have a current annual dividend yield of 7.09%, paid quarterly.

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.