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Stock of the Week
The Best Stock to Buy Now
Issues
With one month left to go in this miserable year, the stock market picture is the brightest it’s been in some time. The S&P 500 is up 11% since its mid-October bottom, volatility is way down, and December is traditionally (though not always) one of the better months on the calendar for investors. The next Fed meeting or inflation data point could throw cold water on all that, but for now the water is at least lukewarm, which means it’s time to take a chance and dive in head-first with a new small-cap financial recommendation courtesy of Cabot Early Opportunities Chief Analyst Tyler Laundon.

Details inside.
Happy Thanksgiving! The market is relatively quiet at the moment, and will likely continue to be ahead of the Thursday holiday. And as we head into the final month of the year, our portfolio is in good shape, with most of our stocks acting well. But it can never hurt to add a bit of safety, especially in a bear market, which is why this week we’re adding a reliable real estate investment trust (REIT) that tends to outperform coming off of down periods for the market. The company comes highly recommended by Cabot Dividend Investor Chief Analyst Tom Hutchinson.

Details inside.
A better-than-expected inflation rate saved the day last week, and stocks are back on the rise after their single best day since April 2020. Will the latest rally last, or is it yet another bear market fake-out? Time will tell. In the meantime, we’re adding a stock that should prosper regardless of which way the market heads next because the company improves access around the world to one thing everyone needs: food. It’s a recent recommendation from Cabot Explorer Chief Analyst Carl Delfeld, and it’s already up more than 40% year to date.

Details inside.
It’s an extremely pivotal week for stocks, as the midterm elections and latest round of inflation data could go a long way toward determining how markets will finish out this difficult year. In the meantime, we’re adding the rare growth stock that has held up well amidst all the ups and downs of late, which should bode well for the coming months. It’s a retail favorite of Cabot Growth Investor Chief Analyst Mike Cintolo – and thus may look familiar to some of you.

Details inside.
Happy Halloween! True to the occasion, the final day of October is cause for investor celebration this year – all three major indexes were up sharply this month (one more sharply than the other two). Yet, with the Fed set to talk interest rates again this week and midterms and more inflation data on tap for next week, things also still feel a bit spooky out there. So, to fortify our portfolio against any further impending doom, today I’m adding a household name that has a proven track record, pays a hefty dividend, and has been overly punished by all the selling over the past year. In fact, value expert Bruce Kaser just added it to his Cabot Undervalued Stocks Advisor portfolio.

Enjoy!
Stocks were up for a second straight week, which might as well be a full-on rally in 2022 terms. At the very least, it’s a good time to add a beaten-down growth stock with immense potential – in a sector that has brought us our biggest winner (by far) to date. It’s a stock that was recently recommended by Tyler Laundon in his Cabot Early Opportunities advisory.

Details inside.

It’s still a bear market, but there were some positive signs this past week, including the market’s surprisingly positive response to another disappointing inflation report last Thursday. With so many stocks and sectors down 20%, 30%, 40% or more, the odds favor a rebound at some point – it’s just a matter of when. Perhaps the most beaten-down subsector has been cannabis, so today we want to take the contrarian route and buy (very) low on a recommendation from new Sector Xpress Cannabis Advisor Chief Analyst Michael Brush. It’s a company that’s growing just fine but whose shares have been overly pummeled like most other marijuana stocks.

Details inside.

Stocks continue to slide, prompting us to add some more safety to the Stock of the Week portfolio in the form of a gold mining stock recommended by Sector Xpress Gold & Metals Advisor analyst Clif Droke this week. It’s one of the few gold miners that’s actually growing revenues, and is in fact the only stock Clif is currently recommending. It also may benefit from ongoing global efforts at “de-dollarization.”


Details below.
Stocks were basically neutral in the last week, with some signs of life bubbling up beneath the surface. In fact, most of our stocks had good weeks – and a couple of them were very good. Still, it remains highly volatile out there, and the selling isn’t necessarily over. And that makes it a good time to add another contrarian play. This week, that means adding our first (ever?) fund, which takes advantage of the fast growth happening outside U.S. borders – and it’s severely undervalued. It’s a recent recommendation from Cabot Explorer chief analyst Carl Delfeld.

Details inside.

It’s ugly out there, as virtually everything has been caught up in the merciless selling the last couple weeks. As a result, we are parting ways with three more stocks this week before their losses become even bigger. But we’re not completely battening down the hatches: Today’s addition to the Stock of the Week portfolio is a small-cap growth stock courtesy of Cabot Early Opportunities Chief Analyst Tyler Laundon. It’s not a household name, but it’s growing fast by taking full advantage of the return to relative normalcy in a post-Covid world.

Details inside.

The market continues to retrace its steps back toward mid-summer lows, but not all stocks are suffering. Renewable energy names, including several in the Stock of the Week portfolio, are holding up quite well thanks in large part to lingering good vibes from the passage of the Inflation Reduction Act. So we’re not fighting the tape – today, we’re adding another clean energy stock to the portfolio, recommended by our Greentech expert, Brendan Coffey.

Details inside.

The bulls came out swinging after Labor Day, putting at least a brief half to all the late-summer selling. Whether the mini-rally lasts another week (or longer) may depend on the new inflation data, due out tomorrow morning before the opening bell. For now, the bear market remains, but it was a good week for stocks – and an even better week for the Stock of the Week portfolio, with several of our stocks up double-digit percentages since we last spoke. And today we add a new stock that’s poised to lead the next true market rally – whenever it arrives – but in the meantime is faring quite well in its own specific niche.

Details inside.

Alerts
Montauk Renewables (MNTK) reported third-quarter earnings after the bell on Wednesday and they weren’t good – at least not compared to estimates.
In recent days, several stocks recommended by Cabot analysts have rocketed to new highs, propelled by the twin forces of social media and short-covering, and our Virgin Galactic (SPCE) is one of them.
Long-term, the odds are very good that this recommendation will move higher, so there is an argument for holding patiently. But we will sell.
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.”
In this rare, mid-week update I will try to be brief, because I know you have a lot to read, including numerous notices of cancellations and closings.
One of our stocks is now rated Sell, simply because it has come so far so fast.
One of our stocks reported results on Thursday and investors didn’t care for the results.
While many investors will be selling stocks in panic today, fearful of the unknown, I recommend that you sit calmly. Wait for the panic to pass and the dust to settle.
Abiomed (ABMD) and GrubHub (GRUB) snapped their uptrends and are now rated Sell.
Twilio (TWLO) sold off in a big way this morning because late last Friday, the company announced that it will sell shares in a secondary offering—but it didn’t say how many!
Tonight I’m recommending selling National Storage Affiliates (NSA) (ideally tomorrow on a bounce), and redeploying the profits into one of my other buy-rated stocks.
If you own TSLA with a large profit, as many of my early subscribers do, I recommend that you continue to hold your shares.
Strategy
Cabot Stock of the Week is a great way to build a diversified portfolio of the top growth, undervalued, momentum, international, dividend and small-cap stocks selected for current market conditions from seven Cabot investment advisories.