Issues
The bull market remains intact, so I continue to recommend that you be heavily invested in stocks that help achieve your investing goals.
Today’s featured stock is a small company that’s growing fast and that has huge growth potential as the market for intelligent vision systems booms.
As for the current portfolio, most of our stocks look good, and many are hitting new highs, but I have two sells, Supreme Brands (SPB) and Trulieve (TCNNF).
Details inside.
Today’s featured stock is a small company that’s growing fast and that has huge growth potential as the market for intelligent vision systems booms.
As for the current portfolio, most of our stocks look good, and many are hitting new highs, but I have two sells, Supreme Brands (SPB) and Trulieve (TCNNF).
Details inside.
Here is your September Wall Street’s Best Digest, issue 845.
Thank you to all who attended our Cabot Wealth Summit last month. It was an information-packed few days, with lots of new ideas shared by all of our analysts. We hope next year we can resume our in-person meetings, as we miss seeing you!
Despite COVID’s resurgence, the markets are holding up surprisingly well. The economy is still strong, housing is robust, but businesses need employees. The unemployment rate for August fell to 5.2%, but new jobs added were much less than anticipated. Once those numbers improve, and COVID recedes, we should be in for an even stronger economy. And that’s great news for the markets!
In this issue, our Spotlight Stock revisits an old favorite of mine—a net-lease REIT that has boosted its dividend for 31 consecutive years! In my Feature article, I discuss all the reasons why this stock has been a perennial winner.
In our Growth section, you’ll find a lot of familiar names, including companies in the retail, hospitality, and communications realms, as well as a couple of newer ones in the fast food franchising, and electric vehicle charging arenas. There are a lot of great names to choose from in Growth & Income, including many industrial-related companies, as well as a home products and chemical manufacturer.
Our Financial offerings include a bank and a money exchange company. And in Healthcare, you’ll find options in biopharma, equipment, and 3-D. And speaking of 3-D, our contributors for technology stocks include one of those companies, as well as a semiconductor, cloud, and two payments businesses.
Resources, Energy, and Utilities continue to be popular fields, as our advisors offer several utilities and midstream energy companies here. Our Low-Priced Stocks are in two relatively new arenas—carbon credits and lab-grown gems. And in Preferred Stocks, High Yield, & REITs, you’ll find a couple of investment/capital corporations.
Lastly, our Funds & ETFs provide a variety of ideas, including cryptocurrency, consumer staples, alternative energy, and water sustainability.
Don’t forget to tune into my monthly Platinum Club webinars. Our October program is scheduled for October 6, at 2pm Eastern. And as always, please don’t hesitate to email me with your feedback and questions. My address is nancy@cabotwealth.com.
Thank you to all who attended our Cabot Wealth Summit last month. It was an information-packed few days, with lots of new ideas shared by all of our analysts. We hope next year we can resume our in-person meetings, as we miss seeing you!
Despite COVID’s resurgence, the markets are holding up surprisingly well. The economy is still strong, housing is robust, but businesses need employees. The unemployment rate for August fell to 5.2%, but new jobs added were much less than anticipated. Once those numbers improve, and COVID recedes, we should be in for an even stronger economy. And that’s great news for the markets!
In this issue, our Spotlight Stock revisits an old favorite of mine—a net-lease REIT that has boosted its dividend for 31 consecutive years! In my Feature article, I discuss all the reasons why this stock has been a perennial winner.
In our Growth section, you’ll find a lot of familiar names, including companies in the retail, hospitality, and communications realms, as well as a couple of newer ones in the fast food franchising, and electric vehicle charging arenas. There are a lot of great names to choose from in Growth & Income, including many industrial-related companies, as well as a home products and chemical manufacturer.
Our Financial offerings include a bank and a money exchange company. And in Healthcare, you’ll find options in biopharma, equipment, and 3-D. And speaking of 3-D, our contributors for technology stocks include one of those companies, as well as a semiconductor, cloud, and two payments businesses.
Resources, Energy, and Utilities continue to be popular fields, as our advisors offer several utilities and midstream energy companies here. Our Low-Priced Stocks are in two relatively new arenas—carbon credits and lab-grown gems. And in Preferred Stocks, High Yield, & REITs, you’ll find a couple of investment/capital corporations.
Lastly, our Funds & ETFs provide a variety of ideas, including cryptocurrency, consumer staples, alternative energy, and water sustainability.
Don’t forget to tune into my monthly Platinum Club webinars. Our October program is scheduled for October 6, at 2pm Eastern. And as always, please don’t hesitate to email me with your feedback and questions. My address is nancy@cabotwealth.com.
Growth stocks have gotten off a bit of a sour start in September, with a couple of leaders cracking near-term support and a few collapsing completely. That tells us the tricky environment remains in effect ... and yet, we don’t think the action is bad at all. Indeed, most growth stocks remain in good shape, and frankly a further pullback should offer up some high-odds entry points.
Tonight, though, we’re standing pat with our 32% cash position after selling one stock earlier this week.
Tonight, though, we’re standing pat with our 32% cash position after selling one stock earlier this week.
Markets are facing end-of-the-summer doldrums as concerns about job and Covid growth dampen enthusiasm. We move two stocks from buy to hold, while on the positive side, Cloudflare (NET) shares are up 73% this year and Novonix (NVNXF) shares are up 58% in the last 10 days of trading. Today we have a new semiconductor-related idea for you in an area usually overlooked by investors.
Today, we are recommending a small Canadian specialty pharma company that checks all the boxes of what we typically look for:
All the details are inside this month’s Issue. Enjoy!
- High insider ownership (insiders own ~41% of shares outstanding)
- Recent insider buying (insiders bought as recently as August 21)
- Strong momentum (stock is near 52 week high)
- Low valuation (P/E of 5.2x)
- Low share count (only 26MM shares outstanding)
- Strong revenue growth potential (promising pipeline)
- No debt (29% of market cap is in cash)
All the details are inside this month’s Issue. Enjoy!
Ahead of the long holiday weekend, it was a mixed bag last week as the S&P 500 rose 0.58%, the Dow lost 0.25%, and the Nasdaq climbed 1.55%.
This week traders will keep a close eye on inflation as the Labor Department releases its August index of U.S. wholesale prices, otherwise known as the producer price index. The market is estimating an increase of 0.5%, after 1% increases in June and July. July witnessed a 7.8% increase year over year, which was the largest bump in over a decade. Another spike would not bode well for the overall market, so I will be keeping an eye on the release and its impact on price action.
With that in mind, and always an eye on diversification, this week’s pick is a steel and iron enterprise company.
This week traders will keep a close eye on inflation as the Labor Department releases its August index of U.S. wholesale prices, otherwise known as the producer price index. The market is estimating an increase of 0.5%, after 1% increases in June and July. July witnessed a 7.8% increase year over year, which was the largest bump in over a decade. Another spike would not bode well for the overall market, so I will be keeping an eye on the release and its impact on price action.
With that in mind, and always an eye on diversification, this week’s pick is a steel and iron enterprise company.
It’s still an amazing market. The S&P is up 96% from the bear market low in March of 2020. The index is also up over 20% so far this year.
While the overall market may be pricey, there are still undervalued pockets within the market. The indexes don’t tell the whole story. Even in a market like this, some stocks get neglected.
The yield curve has flattened and two stocks in the portfolio, AGNC and USB, have pulled back as a result. I believe this interest rate dynamic is temporary and these stocks are good buys ahead of a likely reversal.
While the overall market may be pricey, there are still undervalued pockets within the market. The indexes don’t tell the whole story. Even in a market like this, some stocks get neglected.
The yield curve has flattened and two stocks in the portfolio, AGNC and USB, have pulled back as a result. I believe this interest rate dynamic is temporary and these stocks are good buys ahead of a likely reversal.
Thanks to all of you who joined us for our Cabot Wealth Summit in August. It was a great few days—lots of new ideas to share amid a backdrop of a still bullish market.
Sentiment continues to be bullish, but cautious. And Value stocks are still leading Growth. So far in 2021, we are seeing double-digit returns across both styles, with the exception of small-cap growth stocks, which are up 7.6% year-to-date.
The Dow Jones Industrial Average has stayed above 35,000, propped up by a fabulous earnings season. According to FactSet, 87% of S&P 500 companies reported both a positive EPS and revenue surprises.
The economy continues strengthening, with a nice drop in the unemployment rate, to 5.2%. Home sales are helping tremendously. Although inventory continues to be a challenge, the rise in prices (18.6%) are helping to mitigate that.
Consumer confidence remains strong, although we are still battling COVID, and hoping that the variant does not derail all the good progress.
In the meantime, I’m constantly searching for new ideas for you, and am pleased that our portfolio continues to outperform.
Please don’t hesitate to email me with your thoughts and questions. I look forward to hearing from you.
Happy Investing!
Sentiment continues to be bullish, but cautious. And Value stocks are still leading Growth. So far in 2021, we are seeing double-digit returns across both styles, with the exception of small-cap growth stocks, which are up 7.6% year-to-date.
The Dow Jones Industrial Average has stayed above 35,000, propped up by a fabulous earnings season. According to FactSet, 87% of S&P 500 companies reported both a positive EPS and revenue surprises.
The economy continues strengthening, with a nice drop in the unemployment rate, to 5.2%. Home sales are helping tremendously. Although inventory continues to be a challenge, the rise in prices (18.6%) are helping to mitigate that.
Consumer confidence remains strong, although we are still battling COVID, and hoping that the variant does not derail all the good progress.
In the meantime, I’m constantly searching for new ideas for you, and am pleased that our portfolio continues to outperform.
Please don’t hesitate to email me with your thoughts and questions. I look forward to hearing from you.
Happy Investing!
The bull market remains intact, so I continue to recommend that you be heavily invested in stocks that help achieve your investing goals.
Today’s featured stock is one of my favorite kinds of stocks—a small company that’s not well known but that’s growing fast by making a big difference in a global marketplace.
As for the current portfolio, most of our stocks look good, and many are hitting new highs, but I have two sells, Five Below (FIVE) and Molson Coors (TAP).
Details inside.
Today’s featured stock is one of my favorite kinds of stocks—a small company that’s not well known but that’s growing fast by making a big difference in a global marketplace.
As for the current portfolio, most of our stocks look good, and many are hitting new highs, but I have two sells, Five Below (FIVE) and Molson Coors (TAP).
Details inside.
Current Market OutlookWe traded in our crystal ball years ago, especially when it comes to short-term predictions, but our screens over the weekend told a clear tale: While it’s not 1999 out there, many growth stocks and indexes have enjoyed good moves of late, and when you combine that with some signs of complacency, a retrenchment looks possible. (Today, in fact, might be the start of that, as many growth stocks were hit.) Still, this isn’t some grand market call—overall, the environment remains the same, with some divergent and rotational action, but also more and more names acting well—but our point is more to make sure you’re still sticking with great-looking stocks at decent entry points, as opposed to chasing things higher. We’ll leave our Market Monitor unchanged this week.
This week’s list has a bunch of strong names thanks to recent earnings reports and other news items. Our Top Pick is Ambarella (AMBA), which staged a massive blastoff on earnings—we’re OK starting small here or on dips.
| Stock Name | Price | ||
|---|---|---|---|
| Academy Sports and Outdoors (ASO) | 45 | ||
| Ambarella (AMBA) | 136 | ||
| Asana Inc. (ASAN) | 95 | ||
| Avalara (AVLR) | 188 | ||
| Chipotle Mexican Grill (CMG) | 1895 | ||
| Floor & Décor (FND) | 125 | ||
| Macy’s, Inc. (M) | 22 | ||
| Nutanix (NTNX) | 44 | ||
| Quanta Services (PWR) | 115 | ||
| TX (TX) | 54 |
Updates
The Federal Reserve is expected to lower interest rates this week, with a likely announcement on July 31. The stock market has fully priced in a rate reduction, which means if the Fed fails to lower rates, investors can expect the market to fall for a few days.
Our portfolio is outperforming the index by roughly 100%, on average. But we’re not the only ones. Many targeted mutual funds are also demolishing the Russell 2000 Small Cap Index.
Remain bullish, but continue to take things on a stock-by-stock basis. Some potholes based on earnings, rotation and news flow are certainly possible, but overall, the bull market is in good shape and most leading stocks act well.
It’s the middle of the summer swoon. But there’s a lot going on in the market, namely earnings. Overall, this earnings season is shaping up to be positive but uninspired.
Last week’s economic reports delivered good news, presuming that you are rooting for a stable or strong U.S. economy. June retail sales rose 0.4% vs. May, when economists expected an 0.2% increase; and retail sales also rose 3.4% vs. a year ago.
This week marks the beginning of the second-quarter earnings season. I don’t foresee any major changes in the trends in any of our companies, but stock price reactions and trends don’t always line up in the short term.
Our emerging markets (EEM) signal continues to be positive and right on top of its 20-day moving average as China and other emerging markets are bumping along and lacking a decisive uptrend.
Things look pretty darn good. The S&P 500 has broken the 3000 level for the first time ever and is within a whisker of its all-time high. The index is up over 9% since the beginning of June and 20% so far in 2019.
From a stock market point of view, I suggest avoiding homebuilder stocks in the coming years. Companies that build single-family homes will be competing with a glut of existing homes on the market.
Alerts
William Blair recently initiated coverage on this government contractor, with an ‘Outperform’ rating.
This preferred issue has a nice yield and is backed by a large North American insurance carrier.
The shares of this video game maker were just initiated at Wells Fargo with an ‘Overweight’ rating.
The shares of this chipmaker were recently upgraded by B o A Securities, to ‘Buy’.
This accounting solutions company is forecasted to grow at an annual rate of 50% over the next five years.
As I mentioned in yesterday’s issue, we got some bad news on this portfolio stock before the market opened regarding an internal investigation of fraud by the company’s COO and several other employees who apparently significantly overstated sales in 2019.
The majority of this insurance company’s analysts rate its shares a ‘Buy.’
The shares of this China stock fell sharply today after the company announced that it had suspended the CFO and several employees reporting to him for misconduct related to “fabricated transactions.”
The top five holdings of this fund are Acceleron Pharma Inc (XLRN, 4.02% of assets), Momenta Pharmaceuticals Inc (MNTA, 3.99%), Ultragenyx Pharmaceutical Inc (RARE, 3.10%), Regeneron Pharmaceuticals Inc (REGN, 2.79%), and United Therapeutics Corp (UTHR, 2.71%).
This tech company just added another big collaboration, striking a deal with NVIDIA, to use its UE emulation (UEE) to test NVIDIA’s 5G software solutions.
Analysts are forecasting 13.6% growth for this meat producer this year.
In the past quarter, 27 hedge funds have this financial stock in their portfolios, up from 24 in the previous quarter.
Portfolios
Strategy
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.