Issues
Some 100 gigawatts of solar power projects were completed last year, and after some virus-related issues, there’s every reason to expect even faster deployment of solar in the future. That should help today’s recommendation, a provider of residential solar electricity via solar panels and battery storage
Current Market OutlookThe Nasdaq and leading stocks had a huge reversal today, with many names that had gone vertical suffering some heavy-volume selling, representing another shot across the bow. Still, as we’ve written before, one day does not a trend make; the trend of the Nasdaq and growth stocks remain up, while the broader indexes and cyclical sectors are positive but mostly range-bound. As has been the case earlier in the rally, what happens from here will be key--continued distribution would be a sign that the current run could be ending, likely followed by a well-deserved digestion phase, but strong support in the near future would likely tell us this was just another brief stumble on the way to higher prices. Stepping back, most of the evidence remains positive, so we’re still bullish, but the next few days will be key.
As opposed to the last two weeks, this week’s list is back to having a leadership, growth-ier feel to it. Our Top Pick is Alibaba (BABA), which has always had the makings of a liquid leader, and is helping to lead the group rally in Chinese stocks as it lifts out of a two-year rest.
| Stock Name | Price | ||
|---|---|---|---|
| Alibaba (BABA) | 254.81 | ||
| Bill.com Holdings (BILL) | 88.76 | ||
| Kinross Gold (KGC) | 8.19 | ||
| Marvell Technology Group (MRVL) | 36.88 | ||
| Pacira Biosiences (PCRX) | 54.85 | ||
| Redfin (RDFN) | 40.40 | ||
| Roku, Inc. (ROKU) | 150.46 | ||
| Splunk (SPLK) | 207.67 | ||
| Sunrun (RUN) | 38.40 | ||
| XP Inc. (XP) | 44.59 |
The market remains in good health and trending higher, and our stocks as a whole have been benefitting thoroughly. However, it’s possible that today we may be seeing the beginning of a correction in the leading Nasdaq glamour stocks. Time will tell.
In the meantime, owning a diversified portfolio of high-potential stocks is the best prescription for your financial health, and today’s featured stock is a good one, a leader in the industry of nationwide homebuilders.
As for the current portfolio, there are no changes, though there is one stock I’m downgrading to hold as I keep a close eye on it.
Full details in the issue.
In the meantime, owning a diversified portfolio of high-potential stocks is the best prescription for your financial health, and today’s featured stock is a good one, a leader in the industry of nationwide homebuilders.
As for the current portfolio, there are no changes, though there is one stock I’m downgrading to hold as I keep a close eye on it.
Full details in the issue.
U.S. markets are trading cautiously with the latest uncertainty surrounding the coronavirus pandemic. Chinese markets have surged over the last week and I’ll outline a trading idea to take advantage of the momentum. Our emerging market (EEM) signal is decisively positive as our portfolio moves ahead, led by our Alibaba (BABA) position, up 18% this week, and Sea Limited (SE) continuing its incredible run. Today, we discuss changes afoot in Hong Kong with a new recommendation that is an undervalued throwback blue chip that is also a high-quality proxy for Asian growth.
Today we are profiling a logistics company that is far under the radar of most investors, despite strong revenue growth, 100%+ earnings growth in its most recent fiscal year, and a mid-single-digit P/E.
Further, management and directors own 44% of the company’s stock, ensuring that investors are well aligned.
All the details are inside this month’s Issue. Enjoy!
Further, management and directors own 44% of the company’s stock, ensuring that investors are well aligned.
All the details are inside this month’s Issue. Enjoy!
While everyone is focused on the near-term risks and inconveniences of this pandemic, lasting changes are being forged. Major events have a way of reshaping the American psyche and changing behavior. This pandemic ordeal is forever altering aspects of our culture, creating an a unique opportunity for investors.
In this month’s issue I highlight a stock that directly benefits from the fact that people will continue to do more things from home than they did before the pandemic. It sells popular packaged food brands. Business is booming and should stay good for a long time.
A former slow-growth stock is being transformed into a fast-growing, high-yielding investment that is ideal to hold through the crisis and beyond. Investors are just beginning to realize the opportunity. But you can still get in cheap.
In this month’s issue I highlight a stock that directly benefits from the fact that people will continue to do more things from home than they did before the pandemic. It sells popular packaged food brands. Business is booming and should stay good for a long time.
A former slow-growth stock is being transformed into a fast-growing, high-yielding investment that is ideal to hold through the crisis and beyond. Investors are just beginning to realize the opportunity. But you can still get in cheap.
Any doubts surrounding the work-from-home secular theme were dispelled by the pandemic, as remote platforms are now more prevalent than ever, and it should stay that way—recent surveys point out that up to three quarters of companies anticipate remote work being part of their long-term strategy, and Harvard just today said it’s going fully online in the fall.
Current Market OutlookComing into last week, the market was at a key juncture, with many indexes testing their key 50-day lines and even the Nasdaq testing its 25-day line, which has contained its post-bottom advance. Happily, those tests were passed, and now we see the Nasdaq at new highs and other indexes getting some daylight above their 50-day lines. Of course, there are still a few issues out there, as the environment remains relatively bifurcated and there are few stocks at great entry points after 15-plus weeks on the upside; sentiment is also getting a touch euphoric. Thus, you should continue to keep your feet on the ground and not pile into stuff sticking straight up in the air, but you should also respect the primary, bullish evidence and stick to a heavily invested stance.
This week’s list has a bit of a secondary feel to it, though all the names have enticing stories and charts. For our Top Pick, we’re going with Ultragenyx (RARE), one of many biotech stocks that’s showing renewed strength.
| Stock Name | Price | ||
|---|---|---|---|
| Alarm.com (ALRM) | 71.33 | ||
| Biohaven Pharmaceutical Holding (BHVN) | 75.71 | ||
| Chegg (CHGG) | 74.21 | ||
| Cloudflare (NET) | 39.32 | ||
| Nu Skin Enterprises Inc. (NUS) | 46.07 | ||
| Thor Industries (THO) | 104.76 | ||
| Trade Desk (TTD) | 468.02 | ||
| Ultragenyx Pharmaceutical Inc. (RARE) | 87.63 | ||
| Upwork (UPWK) | 15.93 | ||
| Zscaler (ZS) | 126.22 |
The market remains in good health and trending higher, so while there’s always a possibility of a big correction starting any day, the important thing is to remain heavily invested, because the trend is your friend.
Most of our portfolio stocks have been performing superbly (with three hitting new highs today!), but one that isn’t is Tyson Foods (TSN), so that’s now a sell.
As for the newest recommendation, after last week’s dividend-payer, this week we swing back to the small and aggressive side of the market, with a fast-growing company that’s thriving by providing a great consumer service in the cloud.
Full details in the issue.
Most of our portfolio stocks have been performing superbly (with three hitting new highs today!), but one that isn’t is Tyson Foods (TSN), so that’s now a sell.
As for the newest recommendation, after last week’s dividend-payer, this week we swing back to the small and aggressive side of the market, with a fast-growing company that’s thriving by providing a great consumer service in the cloud.
Full details in the issue.
Updates
Well, it couldn’t last forever, right? After months of hardly any pullbacks on the heels of the massive post-election rally, stocks—including small caps—finally had a down week.
This Weekly Update includes summaries for six Cabot Benjamin Graham Value Investor companies that reported quarterly financial results or other important news during the past week.
Our Two-Second Indicator remains negative, our Cabot Tides are now on the fence, and the breadth-related yellow flags have led to some strong selling this week. Short-term, it’s best to pare back on any stocks that break down; longer-term, though, we remain optimistic.
Yesterday, the stock market had its worst day since October; the Dow, Nasdaq and S&P 500 all declined over 1%. Financials and materials stocks were the biggest losers, while safe havens gained.
When I’m out and about in the world, talking to investors, I’ve noticed that when I mention my goal of minimizing the risk associated with stock investing, people’s eyes glaze over. I’ve come to realize that people generally believe eliminating risk actually means eliminating reward. Holy moly, NO!
We have 10 stocks, seven of which are doing quite well, one of which is new, and two of which are acting a little weak.
This Weekly Update includes summaries for four Cabot Benjamin Graham Value Investor companies which reported quarterly financial results or other important news during the past week. I have also included questions from subscribers along with my answers.
The Emerging Markets Timer is in fine shape after Wednesday’s big rally. We have no changes to the portfolio today.
The stock market’s pullback resumed yesterday, but this still looks like a normal retreat following a breakneck four-month rally. One warning light is decreasing breadth, which suggests that when the rally gets going again, it could be driven by a smaller group of stocks.
All the major U.S. stock market indexes are experiencing orderly pullbacks right now. (This is good news because the farther the market climbs without resting, the bigger the pullback when it finally arrives.)
The market’s attention has been squarely focused on jobs this week as updates on that front are likely to influence the Fed’s upcoming decision on interest rates next week. If it hikes (which is likely), it will mark just the third increase since the financial crisis.
This Weekly Update includes one summary of a company that reported quarterly financial results during the past week. I also include questions from subscribers along with my answers.
Alerts
Our second recommendation will be taking some profit.
This gold company is expecting double-digit growth next year.
Last week, we began to see selling begin to appear in some leaders, either through stalling action (selling on the way up) or, more importantly, via some selling on good news. Today we saw the sellers really come out of the woodwork, with many leading growth stocks taking big hits on volume.. As a result, we placing three of our stocks on Hold.
This resource company mines a key ingredient for electric vehicles—a booming market.
One stock moves from Hold to Strong Buy.
The shares of this defense company were recently initiated with a ‘Positive’ rating at Susquehanna.
One stock moves from Buy to Hold and there is price action and/or news on three more.
This potato company beat Wall Street’s earnings forecasts by $0.08 last quarter.
Two of our portfolio stocks reported Q4 2018 results.
Two stocks reported fourth-quarter results; plus price action on two more.
This cybersecurity company is expected to grow by 53.2% this year.
In the past 30 days, nine analysts have raised their EPS estimates for this DNA sequencing company.
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.