Issues
The market opened the New Year with a bang last week, partially thanks to a peaceful conclusion to the Fiscal Cliff deal. But, really, the market has been acting well enough for many weeks, and with some of the uncertainty finally in the past, the buyers flexed their muscle. At this point, we’re seeing excellent strength in many cyclical- and turnaround-type companies—financials, industrials, transports and the like, so that’s where your focus should be today. Growth stocks are doing well enough but we can’t say they’re leading quite yet ... though earnings season, which gets underway soon, can always change the landscape.
This week’s list is heavy on the cyclical side of the list, with many stocks coming back to life after 18- to 24-month rest periods—big launching pads that have the potential to generate sustained upmoves. Our favorite of the week is (believe it or not) General Motors (GM), whose business is at its best levels in five years and whose stock is acting like it has much more upside ahead. Buy on any weakness.
This week’s list is heavy on the cyclical side of the list, with many stocks coming back to life after 18- to 24-month rest periods—big launching pads that have the potential to generate sustained upmoves. Our favorite of the week is (believe it or not) General Motors (GM), whose business is at its best levels in five years and whose stock is acting like it has much more upside ahead. Buy on any weakness.
| Stock Name | Price | ||
|---|---|---|---|
| TripAdvisor (TRIP) | 55.14 | ||
| SodaStream (SODA) | 142.91 | ||
| Reliance Steel & Aluminum Co. (RS) | 117.45 | ||
| Robert Half (RHI) | 78.58 | ||
| Cheniere Energy (LNG) | 63.82 | ||
| General Motors Company (GM) | 0.00 | ||
| Ctrip.com International Ltd. (CTRP) | 34.94 | ||
| Citigroup Inc. (C) | 0.00 | ||
| Ashland Inc. (ASH) | 0.00 | ||
| ARM Holdings (ARMH) | 0.00 |
The market took a hit last week, as Washington’s ineptitude continued to grab the headlines and cause investors to raise cash and book some profits. The action wasn’t pretty, for sure, but we can’t say it’s changed the big picture—the rally since the mid-November lows is still intact, and many of the stocks and sectors that had been performing well took last week’s dip in stride. Another day or two of big declines would change our outlook, but right here, you should continue to “lean bullish,” holding your better performers and putting some money to work as opportunities arise. You should, however, also hold a decent cash position until we see more power and decisiveness from the market.
This week’s list is almost evenly split between great growth companies and turnarounds, including a couple of well-known names that are looking good. We like many of the charts, but we’ll go with Qihoo 360 (QIHU) as our favorite of the week. The stock is a bucking bronco, but it has great growth and a big story.
This week’s list is almost evenly split between great growth companies and turnarounds, including a couple of well-known names that are looking good. We like many of the charts, but we’ll go with Qihoo 360 (QIHU) as our favorite of the week. The stock is a bucking bronco, but it has great growth and a big story.
| Stock Name | Price | ||
|---|---|---|---|
| Tenet Healthcare (THC) | 0.00 | ||
| Terex (TEX) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| Qihoo 360 (QIHU) | 0.00 | ||
| Mohawk Industries (MHK) | 0.00 | ||
| General Motors Company (GM) | 0.00 | ||
| FLSR (FLSR) | 0.00 | ||
| Equinix, Inc. (EQIX) | 547.73 | ||
| 3D Systems (DDD) | 0.00 | ||
| Bank of America (BAC) | 0.00 |
It’s not uncommon for nascent market rallies to feature a lot of crosscurrents, and we’re seeing just that during the past few weeks—the action has been generally constructive, but the environment remains news-driven with lots of rotation among stocks and sectors on a day-to-day basis. That said, because of the resilience of the major indexes and the strength (or set-ups) seen from leading stocks, we think you should continue to “lean bullish,” which means doing some buying as opportunities arise, but not pushing the accelerator to the floor. If this rally is the real deal, we expect more and more stocks from a variety of sectors to begin lifting off from multi-week launching pads. It’s something to watch for.
This week’s list is another mixed bag, with many turnaround situations and a few true growth plays. Our favorite of the week is Trimble Navigation (TRMB), an under-the-radar story with solid growth and a powerful stock.
This week’s list is another mixed bag, with many turnaround situations and a few true growth plays. Our favorite of the week is Trimble Navigation (TRMB), an under-the-radar story with solid growth and a powerful stock.
| Stock Name | Price | ||
|---|---|---|---|
| Trimble Navigation (TRMB) | 0.00 | ||
| PVH Corp. (PVH) | 0.00 | ||
| Melco Crown (MPEL) | 0.00 | ||
| Gulfport Energy (GPOR) | 0.00 | ||
| Eastman Chemical (EMN) | 0.00 | ||
| Computer Sciences (CSC) | 0.00 | ||
| Salesforce.com (CRM) | 0.00 | ||
| Cree, Inc. (CREE) | 67.96 | ||
| Abercrombie & Fitch (ANF) | 15.37 | ||
| Aecom Technology (ACM) | 0.00 |
The market’s rally since its mid-November lows has proven durable enough to turn our intermediate-term indicators back into a bullish mode. (Our Market Monitor, shown to the left, has followed suit.) Granted, the buyers aren’t exactly flexing their muscle here, with plenty of choppy action as investors await word on the Fiscal Cliff. But there’s enough evidence that the sellers have left the building, seen in both the major indexes, which have refused to give back any gains of late, and in leading stocks, more and more of which are setting up. You shouldn’t head for the deep end yet, but putting some sidelined cash to work is advised.
This week’s list is a hodgepodge of stocks and sectors, with a handful of turnaround-type stories thrown in. Our favorite of the week is MasTec (MTZ), an off-the-radar name in the construction business. Growth is picking up, and the stock is acting excellently.
This week’s list is a hodgepodge of stocks and sectors, with a handful of turnaround-type stories thrown in. Our favorite of the week is MasTec (MTZ), an off-the-radar name in the construction business. Growth is picking up, and the stock is acting excellently.
| Stock Name | Price | ||
|---|---|---|---|
| United Rentals, Inc. (URI) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| MasTec, Inc. (MTZ) | 66.65 | ||
| Marathon Petroleum Corporation (MPC) | 0.00 | ||
| Louisiana-Pacific (LPX) | 0.00 | ||
| Lowe’s Companies (LOW) | 98.15 | ||
| First Solar (FSLR) | 83.74 | ||
| Canadian Pacific Railway (CP) | 0.00 | ||
| ASML Holding (ASML) | 350.01 | ||
| Amazon.com (AMZN) | 2.00 |
The market’s rally continues to impress, with the major indexes building on their gains and more individual stocks acting well. At this time, our indicators are this close to turning positive; we’ll officially leave our Market Monitor in neutral territory, but if you see a good opportunity, it’s OK to take it. We are growing more encouraged that the market’s two-month correction is over, but we need to see more power among potential leaders; it’s really the one missing ingredient in the market’s nascent rally.
This week’s list is a mixed bag of growth stories and sectors, but there are a few that have us interested. Our favorite of the week is a well-known company that most investors now dislike. It’s Facebook (FB), the social media giant, whose stock is one of the few that has shown great power during the past three weeks. Try to buy on weakness.
This week’s list is a mixed bag of growth stories and sectors, but there are a few that have us interested. Our favorite of the week is a well-known company that most investors now dislike. It’s Facebook (FB), the social media giant, whose stock is one of the few that has shown great power during the past three weeks. Try to buy on weakness.
| Stock Name | Price | ||
|---|---|---|---|
| Ulta Beauty (ULTA) | 331.95 | ||
| Stratasys (SSYS) | 0.00 | ||
| Martin Marietta Materials (MLM) | 261.52 | ||
| Gulfport Energy (GPOR) | 0.00 | ||
| GameStop (GME) | 0.00 | ||
| Facebook, Inc. (FB) | 0.00 | ||
| eBay Inc. (EBAY) | 0.00 | ||
| Dillard’s (DDS) | 0.00 | ||
| Colfax (CFX) | 0.00 | ||
| Abercrombie & Fitch (ANF) | 15.37 |
After a straight-down move following the election, the market rallied smartly during Thanksgiving week on light volume. Clearly, the move was good to see, and there are a decent number of good-looking set-ups out there. However, by our measures, the market’s trends remain down, and we think the rubber will meet the road from this point forward—if the correction is over, we expect more and more stocks to shape up, and for the major indexes to build on their gains. If not, we expect the sellers to take advantage of these prices during the next few days. For now, remain cautious, and we’ll let you know if we get any new buy signals.
In the meantime, it’s imperative to be up on the best-acting stocks and sectors in the market. This week’s list has many names that are off most investors’ radar screens, which we like. Our favorite of the week is Salesforce.com (CRM), a big firm that looks ready to get going after a two-year pause.
In the meantime, it’s imperative to be up on the best-acting stocks and sectors in the market. This week’s list has many names that are off most investors’ radar screens, which we like. Our favorite of the week is Salesforce.com (CRM), a big firm that looks ready to get going after a two-year pause.
| Stock Name | Price | ||
|---|---|---|---|
| Tenet Healthcare (THC) | 0.00 | ||
| Regeneron Pharmaceuticals (REGN) | 512.96 | ||
| Qihoo 360 (QIHU) | 0.00 | ||
| Packaging Corp (PKG) | 0.00 | ||
| HollyFrontier Corporation (HFC) | 0.00 | ||
| HDFC Bank Limited (HDB) | 0.00 | ||
| Gilead Sciences (GILD) | 75.10 | ||
| Eaton Vance Corp. (EV) | 0.00 | ||
| Salesforce.com (CRM) | 0.00 | ||
| Alaska Air Group (ALK) | 0.00 |
The market remains under pressure, though the sellers have eased up a bit during the past couple of trading days; it’s possible that, after a sharp plunge at the end of last week we could see a bounce or countertrend rally develop. That said, this remains a news-driven environment, especially as our leaders in Washington begin their posturing to deal with the Fiscal Cliff. Overall, the intermediate-term trend remains down, and while there are some stocks and sectors resisting the decline, it’s best to stick with your generally defensive stance, limiting new buying to small amounts, taking profits (or partial profits) quickly when you get them and holding a good amount of cash on the sideline.
This week’s list is a hodgepodge of names that are doing well, usually because of recent catalysts or great reactions to quarterly results. Our favorite is a lower-priced name that looks like a special situation—Nam Tai Electronics (NTE) is showing exceptional strength, has huge earnings and sales, and even a big dividend, too. It’s a hot potato, but a small position on weakness could work very well.
This week’s list is a hodgepodge of names that are doing well, usually because of recent catalysts or great reactions to quarterly results. Our favorite is a lower-priced name that looks like a special situation—Nam Tai Electronics (NTE) is showing exceptional strength, has huge earnings and sales, and even a big dividend, too. It’s a hot potato, but a small position on weakness could work very well.
| Stock Name | Price | ||
|---|---|---|---|
| AMC Networks (AMCX) | 0.00 | ||
| BE Aerospace (BEAV) | 0.00 | ||
| BioMarin Pharmaceutical (BMRN) | 0.00 | ||
| Computer Sciences (CSC) | 0.00 | ||
| Copa Holdings (CPA) | 0.00 | ||
| Lions Gate Entertainment Corp. (LGF) | 0.00 | ||
| Mohawk Industries (MHK) | 0.00 | ||
| Nam Tai Electronics (NTE) | 0.00 | ||
| Quanta Services (PWR) | 91.45 | ||
| Thor Industries (THO) | 104.76 |
The market environment hasn’t changed much during the past couple of weeks; the intermediate-term trend of the market is down, and few stocks are managing to make meaningful progress on the upside. That said, it’s also not a disaster out there; some growth stocks have been hammered, but many groups are holding up well and most indexes are just a few percent off their peaks. Of course, the U.S. elections are tomorrow, and it’s possible the results could change the market’s course. But right now, we’ll keep our Market Monitor in neutral territory as the sellers remain in control.
This week’s list is a bit of a hodgepodge of stocks and sectors, but most of the names have recently reacted well to earnings, which is always a positive clue. Our favorite of the week is Whirlpool (WHR), a turnaround stock that is showing exceptional strength. It’s not changing the world, but the numbers look outstanding. Try to buy on weakness.
This week’s list is a bit of a hodgepodge of stocks and sectors, but most of the names have recently reacted well to earnings, which is always a positive clue. Our favorite of the week is Whirlpool (WHR), a turnaround stock that is showing exceptional strength. It’s not changing the world, but the numbers look outstanding. Try to buy on weakness.
| Stock Name | Price | ||
|---|---|---|---|
| WPI (WPI) | 0.00 | ||
| Whirlpool (WHR) | 0.00 | ||
| Affiliated Managers Group, Inc. (AMG) | 0.00 | ||
| CommVault (CVLT) | 0.00 | ||
| Eastman Chemical (EMN) | 0.00 | ||
| Expedia Group (EXPE) | 0.00 | ||
| GameStop (GME) | 0.00 | ||
| Louisiana-Pacific (LPX) | 0.00 | ||
| NXP Semiconductors (NXPI) | 0.00 | ||
| PVH Corp. (PVH) | 0.00 |
Hurricane Sandy has the market closed today and possibly tomorrow, but we don’t think that’s going to affect the market’s path all that much. It’s not 2008 out there, but there’s no question the intermediate-term trend is still down, and that earnings season has been generally rough thus far. We flipped our Market Monitor into neutral territory a couple of weeks ago and it remains there today; it’s better to focus on capital preservation these days than capital appreciation, though some new buying here or there is fine—just be sure to keep your positions smaller than normal, and to keep your stops in place.
The good news is that we have seen a decent amount of big-volume support appear in many stocks during earnings, including more than a few commodity and turnaround situations. Our favorite of the week is Packaging Corp. (PKG), a firm with a supposedly boring story ... but with exciting numbers and a beautiful chart.
The good news is that we have seen a decent amount of big-volume support appear in many stocks during earnings, including more than a few commodity and turnaround situations. Our favorite of the week is Packaging Corp. (PKG), a firm with a supposedly boring story ... but with exciting numbers and a beautiful chart.
| Stock Name | Price | ||
|---|---|---|---|
| 3D Systems (DDD) | 0.00 | ||
| ARM Holdings (ARMH) | 0.00 | ||
| Cabot Oil & Gas (COG) | 0.00 | ||
| HDFC Bank Limited (HDB) | 0.00 | ||
| Jazz Pharmaceuticals (JAZZ) | 0.00 | ||
| Melco Crown (MPEL) | 0.00 | ||
| Michael Kors Holdings Limited (KORS) | 73.22 | ||
| Packaging Corp (PKG) | 0.00 | ||
| Royal Caribbean Cruises (RCL) | 0.00 | ||
| United Rentals, Inc. (URI) | 0.00 |
Markets coughed up a hairball at the end of last week and weren’t all that happy today. Defensive stocks had a better time of it, but many growth issues came under heavy pressure. A few high-profile issues (like Google GOOG) got taken to the cleaners after poorly received earnings reports. It’s too early to conclude that markets are in for a big correction, but the action is negative enough to warrant taking a slightly more defensive posture. You should tighten up the leash on your stocks, maybe be a little quicker to take partial profits or cut losers off if their charts deteriorate. Don’t go in for wholesale selling, but work to protect your portfolio.
This week has an interesting list of metals, large-caps and retail, but the Editor’s Choice is Citigroup (C), a global banking giant that’s making a slow comeback from a massive correction when the housing bubble burst. It’s a good value for a high-quality stock that’s appealing to institutional investors.
This week has an interesting list of metals, large-caps and retail, but the Editor’s Choice is Citigroup (C), a global banking giant that’s making a slow comeback from a massive correction when the housing bubble burst. It’s a good value for a high-quality stock that’s appealing to institutional investors.
| Stock Name | Price | ||
|---|---|---|---|
| Silver Wheaton (SLW) | 0.00 | ||
| Weyerhaeuser (WY) | 0.00 | ||
| Chico’s FAS (CHS) | 0.00 | ||
| Citigroup Inc. (C) | 0.00 | ||
| Coeur Mining (CDE) | 0.00 | ||
| Domino’s Pizza (DPZ) | 339.47 | ||
| LyondellBasell Industries NV (LYB) | 0.00 | ||
| Ocwen Financial (OCN) | 0.00 | ||
| Oshkosh (OSK) | 95.04 | ||
| Polaris Industries (PII) | 0.00 |
The market and many stocks had a bad last week, no doubt about it—instead of slowly fading, the selling pressures have increased of late as earnings season begins in earnest. We can’t say we’re seeing a rash of breakdowns, but enough selling has occurred that we’re moving our Market Monitor into the neutral camp. A shift back in a week or two is possible if earnings season unfolds bullishly, but for now, we recommend limiting your new buying to smaller positions (maybe half or two-thirds of what you’d usually buy) and consider some names that could trend on their own (like precious metals names, for instance). You should, however, still try to hold onto shares of your most resilient performers, giving them a chance to re-emerge.
This week’s list has a few tempting growth stocks, as well as some turnaround plays that are doing well. But we’ll stick with the precious metals group, which has consolidated nicely after bolting higher last month. Allied Nevada Gold (ANV) is one of many that looks like it wants to head higher, bolstered by the price of gold and higher output.
This week’s list has a few tempting growth stocks, as well as some turnaround plays that are doing well. But we’ll stick with the precious metals group, which has consolidated nicely after bolting higher last month. Allied Nevada Gold (ANV) is one of many that looks like it wants to head higher, bolstered by the price of gold and higher output.
| Stock Name | Price | ||
|---|---|---|---|
| ANV (ANV) | 0.00 | ||
| AOL, Inc. (AOL) | 0.00 | ||
| Barclays (BCS) | 0.00 | ||
| CTRX (CTRX) | 0.00 | ||
| DVA (DVA) | 0.00 | ||
| Eagle Materials Inc. (EXP) | 0.00 | ||
| AG (AG) | 0.00 | ||
| Google Inc. (GOOG) | 0.00 | ||
| Rackspace (RAX) | 0.00 | ||
| Royal Caribbean Cruises (RCL) | 0.00 |
The market bounced back in the first few days of last week, but Friday’s negative reversal, combined with today’s downmove, makes it clear that there are still sellers lurking out there. Our thoughts remain unchanged—on a near-term basis, expect more choppiness and hesitation; taking some profits on strength and holding some cash makes sense as we head into earnings season. That said, we can’t conclude the intermediate-term trend has turned down, either for the market or for most stocks; thus, while you should dump your losers and laggards, we recommend holding on to most of your best performers.
This week’s list reflects the recent environment—most of the names are either a bit thinly traded or have the ability to trade outside the market’s influence (housing, precious metals, etc.). Our favorite of the week is Fusion-io (FIO), a relatively new technology firm that is growing rapidly and has been acting very well over the past few months.
This week’s list reflects the recent environment—most of the names are either a bit thinly traded or have the ability to trade outside the market’s influence (housing, precious metals, etc.). Our favorite of the week is Fusion-io (FIO), a relatively new technology firm that is growing rapidly and has been acting very well over the past few months.
| Stock Name | Price | ||
|---|---|---|---|
| Accenture (ACN) | 0.00 | ||
| Align Technology (ALGN) | 316.20 | ||
| CLGX (CLGX) | 0.00 | ||
| Cosan Limited (CZZ) | 0.00 | ||
| Fusion-io (FIO) | 0.00 | ||
| NetSuite, Inc. (N) | 0.00 | ||
| ONYX Pharmaceuticals (ONXX) | 0.00 | ||
| Qihoo 360 (QIHU) | 0.00 | ||
| Whirlpool (WHR) | 0.00 | ||
| AUY (AUY) | 0.00 |
Updates
It’s not often that we discuss currencies in the Cabot Turnaround Letter, but given the persistent relative strength of the U.S. dollar right now, I think it’s imperative that we address it—mainly because of how it will likely impact our portfolio holdings going forward.
The top haven asset for the first half of 2026 wasn’t gold, U.S. Treasury bonds or the Japanese yen.
The top haven asset for the first half of 2026 wasn’t gold, U.S. Treasury bonds or the Japanese yen.
After spending much of the year leading the market higher, small caps have finally run into a little turbulence. Through midday today, the S&P 600 Index is down 1.8% from last Thursday’s close, roughly in line with the S&P 500’s 1.9% decline.
That said, it’s important to keep the recent pullback in perspective. Small caps remain the market’s clear leader in 2026, with the S&P 600 up 20.2% year to date versus an 8.1% gain for the S&P 500.
That said, it’s important to keep the recent pullback in perspective. Small caps remain the market’s clear leader in 2026, with the S&P 600 up 20.2% year to date versus an 8.1% gain for the S&P 500.
While flashier, more star-studded teams like Lionel Messi’s Argentina, Kylian Mbappe’s France and Erling Haaland’s Norway garnered most of the headlines at the just-completed World Cup, Spain was the best team. There was nothing flashy about Spain: no mega-stars, not a ton of goals, no relentless attack. Instead, they dominated the tournament with precision passing, immaculate ball control and near-impenetrable (just one goal allowed all tournament!) defense.
High-flying AI-related stocks are facing a high bar of performance. Even what normally would be considered staggering growth is met with a yawn. The backdrop of the Middle East conflict and almost $100 oil is not helpful.
The Philadelphia Semiconductor Index (SOX) has outperformed the S&P 500 by 57% this year, even after a sharp correction. This is basically a macro trade, and there are few industries as cyclical, or as capital-intensive, as semiconductor manufacturing.
The Philadelphia Semiconductor Index (SOX) has outperformed the S&P 500 by 57% this year, even after a sharp correction. This is basically a macro trade, and there are few industries as cyclical, or as capital-intensive, as semiconductor manufacturing.
The market rolls sideways amidst a slew of conflicting forces.
The S&P 500 has bounced around and is at the same level it was in the middle of May. The primary culprit is technology. That sector has been in a funk. The S&P 500 is hard-pressed to generate any lasting traction while this massive sector, accounting for over 40% of the index, flounders.
The S&P 500 has bounced around and is at the same level it was in the middle of May. The primary culprit is technology. That sector has been in a funk. The S&P 500 is hard-pressed to generate any lasting traction while this massive sector, accounting for over 40% of the index, flounders.
The market has gone sideways since May. It seems to be deciding what to do.
It’s encouraging that the resumption of hostilities with Iran has not sent the market lower. It’s also positive that oil prices aren’t rising back to the $100 level earlier in the war, although prices have risen. It’s also another earnings season and analysts expect a big one.
It’s encouraging that the resumption of hostilities with Iran has not sent the market lower. It’s also positive that oil prices aren’t rising back to the $100 level earlier in the war, although prices have risen. It’s also another earnings season and analysts expect a big one.
With war being one of the most dominant themes of the last four years, it stands to reason that investors should position their portfolios to account for this conspicuous (and unwelcome) trend.
And lest one be tempted to think that the warfare theme will diminish anytime soon, last week’s article by NPR deflates that illusion: It revealed that global military conflicts are at their highest level since WWII.
And lest one be tempted to think that the warfare theme will diminish anytime soon, last week’s article by NPR deflates that illusion: It revealed that global military conflicts are at their highest level since WWII.
Price targets are standard practice on Wall Street. But sometimes, they can act as an artificial ceiling.
For example, say Truist sets a price target on an up-and-coming growth stock that’s 25% higher than its current share price. For a growth stock, a 25% return isn’t much. But then again, the stock could be a total flop, which is the natural boom-or-bust tradeoff growth investors must endure in trading off increased risk for massive upside. So, a price target on a growth stock seems almost like an unnecessary cap on a stock that has the potential to go through the roof.
For example, say Truist sets a price target on an up-and-coming growth stock that’s 25% higher than its current share price. For a growth stock, a 25% return isn’t much. But then again, the stock could be a total flop, which is the natural boom-or-bust tradeoff growth investors must endure in trading off increased risk for massive upside. So, a price target on a growth stock seems almost like an unnecessary cap on a stock that has the potential to go through the roof.
WHAT TO DO NOW: Continue to trim your sails. In the Model Portfolio, we’ve been getting closer and closer to shore as growth funds and indexes are under pressure and AI stocks cascade lower. Tonight we’re going to further trim Marvell (MRVL) given its ugly action, selling a third of what we have left. That will leave the portfolio with a big 58% cash position. We could put some of that to work if growth names find support, but we want to see key growth measures firm up before buying.
After a brief pause last week, small caps are once again leading the pack.
Through Wednesday’s close, the S&P 600 Small Cap Index is up roughly 21% year to date, compared to gains of about 15% for the S&P 400 MidCap Index, 17% for the Nasdaq and 11% for the S&P 500.
Through Wednesday’s close, the S&P 600 Small Cap Index is up roughly 21% year to date, compared to gains of about 15% for the S&P 400 MidCap Index, 17% for the Nasdaq and 11% for the S&P 500.
Its earnings season again! That’s a good thing. Earnings just might save the day in an otherwise confusing and uncertain market.
The market is causing whiplash. The Iran peace deal changed things. Stocks held back by high oil prices, and the resulting higher inflation and interest rates, reignited as oil prices came back down after the peace deal. But hostilities with Iran have resumed.
The market is causing whiplash. The Iran peace deal changed things. Stocks held back by high oil prices, and the resulting higher inflation and interest rates, reignited as oil prices came back down after the peace deal. But hostilities with Iran have resumed.
The peace deal may be on hold again. But stocks are hanging in there so far.
The ceasefire with Iran is over and hostilities have resumed. That sounds like a bigger bummer than it’s been in the market so far. Falling oil prices enabled previously beleaguered stocks to soar higher again as the prognosis for inflation and interest rates simultaneously improved. But that rally is over if oil prices spike higher again.
The ceasefire with Iran is over and hostilities have resumed. That sounds like a bigger bummer than it’s been in the market so far. Falling oil prices enabled previously beleaguered stocks to soar higher again as the prognosis for inflation and interest rates simultaneously improved. But that rally is over if oil prices spike higher again.
Alerts
This Top Pick beat earnings estimates by eight cents last quarter, posting EPS of $0.90 per share.
ICON (ICLR)
from Upside
ICON (ICLR), a contract research organization (CRO), has grown sales by at least 10% in 13 straight quarters, while operating profit margins have expanded in each of the past 11 quarters. The...
ICON (ICLR)
from Upside
ICON (ICLR), a contract research organization (CRO), has grown sales by at least 10% in 13 straight quarters, while operating profit margins have expanded in each of the past 11 quarters. The...
The shares of this Chinese e-commerce company were just initiated at Bernstein with an “outperform” rating and were upgraded by Goldman to “buy”. The company beat estimates by eight cents last quarter.
Alibaba (BABA)
from Cabot China & Emerging Markets Report
Alibaba (BABA) is my pick, partly because of the company’s position in...
Alibaba (BABA)
from Cabot China & Emerging Markets Report
Alibaba (BABA) is my pick, partly because of the company’s position in...
Our contributor is trading in his January pick for a new stock, which has recently been endorsed by hedge fund manager Julian Robertson, who says he is “extremely positive” on the shares.
Sell: Fossil Group (FOSL)
from Cabot Benjamin Graham Value Investor
Fossil Group (FOSL) Results have been disappointing during the past couple...
Sell: Fossil Group (FOSL)
from Cabot Benjamin Graham Value Investor
Fossil Group (FOSL) Results have been disappointing during the past couple...
Exciting developments are at hand for this biotech with a new ticker.
Benitec Biopharma (BTEBD)
from Global Investing
Benitec Biopharma (BTEBD) announced hot news. First, the company will issue US$70 million in new ADRs under its new ticker symbol, BTEBD (BLT in Australia), each new US share equal to 4 former BTEBY shares....
Benitec Biopharma (BTEBD)
from Global Investing
Benitec Biopharma (BTEBD) announced hot news. First, the company will issue US$70 million in new ADRs under its new ticker symbol, BTEBD (BLT in Australia), each new US share equal to 4 former BTEBY shares....
The shares of this home décor company were just upgraded by BB&T Capital Markets to “buy”, and analysts have raised their earnings estimates by six cents in the past 90 days.
Restoration Hardware (RH)
from Cabot Top Ten Trader
Business-wise, Restoration Hardware (RH) has done exactly what I thought it would—grow rapidly as...
Restoration Hardware (RH)
from Cabot Top Ten Trader
Business-wise, Restoration Hardware (RH) has done exactly what I thought it would—grow rapidly as...
Direxion Daily 20 Plus Year Bear 3 Shares (TMV), Proshares Short 20 Plus Year Treasury (TBF), and Pr
These three ETFs are a hedge against rising inflation and bond yields.
Direxion Daily 20 Plus Year Bear 3 Shares (TMV), Proshares Short 20 Plus Year Treasury (TBF), and Proshares Ultrashort Lehman 20 Plus Year (TBT)
from Sound Advice
Bond yields have risen recently as Europe’s QE programs and other expansionary monetary policies...
Direxion Daily 20 Plus Year Bear 3 Shares (TMV), Proshares Short 20 Plus Year Treasury (TBF), and Proshares Ultrashort Lehman 20 Plus Year (TBT)
from Sound Advice
Bond yields have risen recently as Europe’s QE programs and other expansionary monetary policies...
Low oil prices have discounted the stock price of this oil giant.
Exxon-Mobil (XOM)
from The Heartland Adviser
At the beginning of the year I chose Exxon Mobil (XOM) as my top stock pick.
The company was my choice in January because Exxon is a Value Line A++ company whose value fell due to...
Exxon-Mobil (XOM)
from The Heartland Adviser
At the beginning of the year I chose Exxon Mobil (XOM) as my top stock pick.
The company was my choice in January because Exxon is a Value Line A++ company whose value fell due to...
With both assets and loans growing at double-digit rates, this bank may be growing closer to a takeover.
Avid Bank Holdings (AVBH)
from Hughes Investment Management
Avid Bank Holdings (AVBH) continues to grow strongly, in the fast-paced high tech market. The bank still has almost zero charge offs for bad loans. The management...
Avid Bank Holdings (AVBH)
from Hughes Investment Management
Avid Bank Holdings (AVBH) continues to grow strongly, in the fast-paced high tech market. The bank still has almost zero charge offs for bad loans. The management...
This small cap company saw its revenues rise 35%, to a record $13.8 million, last quarter, due to expanded contracts, as well as a nice dose of new recurring revenue.
Auxilio (AUXO)
from The Quiet Investor
I continue to espouse Auxilio (AUXO), despite the sideways movement of the stock price over the past...
Auxilio (AUXO)
from The Quiet Investor
I continue to espouse Auxilio (AUXO), despite the sideways movement of the stock price over the past...
Declining oil prices affected recent earnings, but this company just received a glowing endorsement as a “bargain” in Barron’s.
Precision Castparts’ (PCP)
from Hendershot Investments
For fiscal 2015, Precision Castparts’ (PCP) sales increased 5% to $10 billion with net income declining 14% to $1.5 billion and EPS falling 10% on fewer shares outstanding...
Precision Castparts’ (PCP)
from Hendershot Investments
For fiscal 2015, Precision Castparts’ (PCP) sales increased 5% to $10 billion with net income declining 14% to $1.5 billion and EPS falling 10% on fewer shares outstanding...
The shares of this animal health and retailer are on the rise, but technical analysis indicates they have further to go.
Zoetis Inc. (ZTS)
from Shortex Market Letter
Zoetis Inc. (ZTS)
52 wk high: 49.55 52wk low: 30.50
Mkt cap: $24.44B EPS: 1.18 P/E: 41.43
Div/Yld: 0.33 (0.70%)
Ascending pattern since mid Dec ’14 (42-44), to...
Zoetis Inc. (ZTS)
from Shortex Market Letter
Zoetis Inc. (ZTS)
52 wk high: 49.55 52wk low: 30.50
Mkt cap: $24.44B EPS: 1.18 P/E: 41.43
Div/Yld: 0.33 (0.70%)
Ascending pattern since mid Dec ’14 (42-44), to...
Ross Stores (ROST 51)
from Shortex Market Letter
Please note: Shares split 2:1 on June 12, 2015
Ross Stores (ROST)
52 wk high: 54.48 52wk low: 30.92
Mkt cap: $20.28B EPS: 4.64 P/E: 21.14
Div/Yld: 0.94 (1.00%)
Operator of 1,242 Ross Dress and 157 dd’s DISCOUNTS stores. In correction/retraction mode since...
from Shortex Market Letter
Please note: Shares split 2:1 on June 12, 2015
Ross Stores (ROST)
52 wk high: 54.48 52wk low: 30.92
Mkt cap: $20.28B EPS: 4.64 P/E: 21.14
Div/Yld: 0.94 (1.00%)
Operator of 1,242 Ross Dress and 157 dd’s DISCOUNTS stores. In correction/retraction mode since...
Portfolios
Strategy
A few Cabot Options Trader subscribers have asked me about ways to protect gains in their portfolios, so I thought I would write to everyone with a couple of strategies using options to hedge your portfolio.
A subscriber recently asked me if I keep a journal of my trades. Many traders keep journals so they can look back at their trades and evaluate what they did right and what they did wrong.
Want to know how the big institutional investors use options? Here is an example of how one trader spent $132 million on three technology stocks.
Options trading has its own vernacular. To know how to do it, you need to know what every options term means. Here are some of the basics.
Our Cabot Momentum 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 Momentum Trader features.