October is the most celebrated month in Cabot’s native home of Salem, Massachusetts (i.e., home of the Salem Witch Trials). All month long, it’s one costume-heavy Halloween party. Will a similar party commence on Wall Street? The odds favor it. October has a long history of being a month where markets bottom – and rallies begin. In fact, it happened just last year. One area of the market that has already begun to rally is cannabis, thanks to some (long overdue) new legislation. So today, we add back a bit of cannabis exposure courtesy of Cabot Cannabis Investor Chief Analyst Michael Brush.

Details inside.

So much for the market being boring! The Fed – with its “higher for longer” vow – broke up the recent monotony, albeit not in a good way. The S&P 500 has dipped to its lowest level since June, and growth stocks have had a rough go these last two months. But all signs point to a fourth-quarter bounce-back – new bull markets almost never up and fizzle within a matter of months. Knowing this, today we add a beaten-down biotech stock with plenty of upside, a recent recommendation from Cabot Early Opportunities Chief Analyst Tyler Laundon.

Details inside.

The market has been stagnant for the last month, but that’s not necessarily a bad thing. It could be a nice, long deep breath – in what is historically the market’s worst-performing month – before the next big push in this still-new bull market. But just in case it goes the other direction, today we add a low-risk utility stock that’s having a down year but tends to beat the indexes over time. It’s a longtime favorite of Cabot Dividend Investor Chief Analyst Tom Hutchinson.

Details inside.

Stocks took a predictable early-September hit last week, but the damage was minimal, and it appears the indexes want to go up – pending the results of this Wednesday’s inflation data, of course. Chinese stocks, meanwhile, haven’t gone anywhere but down for a while, but today we take a contrarian view by adding a big-brand Chinese company that Carl Delfeld just added to his Cabot Explorer portfolio. Sure, China’s economy has underwhelmed, but that’s not likely to be the case for long. And today’s addition is poised to lead China’s recovery.



Details inside.

It’s September, which normally spells doom for investors. Even if that’s the case again this month, the “doom” is likely to be short-lived, as new bull markets like the one we saw in the first half of 2023 almost never up and fizzle. Short-term wobbles aside, share prices are likely to be higher by year’s end – perhaps much higher. With that in mind, today we take another dip in the growth pool by adding a favorite of Cabot Growth Investor Chief Analyst Mike Cintolo – a high-tech stock that’s already up more than 50% year to date and yet trades well off its late-2021 peak.

Stocks are finally showing signs of life after a brutal August, and many of our Stock of the Week positions have fared even better than the market of late. Don’t expect much movement this week as investors will likely play out the summer string until they lock in after Labor Day. Will the (modest) recent gains hold in September, notoriously the weakest month on the investment calendar? We’ll start to find out next week. In the meantime, we won’t try and do too much, which is why today we’re adding a solid-if-unspectacular big-cap retailer that has a habit of beating the market. It’s a new addition from Cabot Dividend Investor Chief Analyst Tom Hutchinson.

Dog days of August, indeed! The market’s late-summer swoon continues, but that doesn’t mean the bull market party is already over; the power simply went out and we’re waiting for the generators to bring it surging back to life. In the meantime, opportunities to buy good companies at discounted prices abound. With that in mind, today we add a former market darling that fell on very hard times in 2021 and 2022 but is having a solid 2023, with even better growth likely to return in 2024 as the Fed is poised to (likely) cut sky-high interest rates next year. It’s a new addition from Cabot Early Opportunities Chief Analyst Tyler Laundon.

August has been a slog for investors, as an uneven earnings season has given the sellers the full buckets they needed to throw a bit of cold water on the 2023 bull market. While high-flying growth stocks have certainly taken it on the chin, especially on earnings, the overall market pullback has been fairly modest, and probably healthy in the long run. With prices lower than they were in July, particularly among growth stocks, today we add a big name with a revolutionary product that many people already use regularly – though only about half the country has access to it. That will soon change, which is why Cabot Growth Investor’s Mike Cintolo is high on it.

The new bull market encountered its first real hiccup last week, as second-quarter earnings season hasn’t been kind to growth stocks in particular – even ones that blow estimates out of the water. So, a few of our stocks retreated after earnings, only one of which was enough to warrant selling. I view most of the earnings-induced pullbacks as buying opportunities. And today, we add a stock that has something for everyone – it’s a big-cap technology company with an artificial intelligence tilt, plenty of momentum and it pays a dividend. It’s a longtime holding of Cabot Dividend Investor Chief Analyst Tom Hutchinson.

Another interest rate hike and negative second-quarter earnings growth have done little to slow the bull market rally or investor confidence, so this week we add a “Bull Market Stock” to take advantage of the strength. It’s a term coined by our Mike Cintolo, so naturally, today we add Mike’s favorite Bull Market Stock, one he recently recommended to his Cabot Top Ten Trader audience, a company that benefits directly anytime there’s a bull market and the big institutions are buying stocks hand over fist.

The bull market keeps rolling along, though both the Fed and a busy, star-studded earnings slate could provide a couple speed bumps this week. Still, I wouldn’t bet against this market right now, at least not in the intermediate or long term, so today we’re adding another high-upside pick. It’s a mid-cap software stock that’s trading well below its post-IPO highs, but that has built up a full head of steam the last two-plus months. It’s a new addition from Cabot Early Opportunities Chief Analyst Tyler Laundon.

Details inside.

The new bull market went into hyperdrive last week, fueled by lower-than-expected inflation and an encouraging start to earnings season. With another interest rate hike and weak Q2 earnings expectations looming in the back half of this month and beyond, there could be some speed bumps ahead. But for now, the good times are rolling, and that means taking more big swings. This week, we do so in a small-cap, Canada-based rare earths producer that is a brand new recommendation from Cabot Explorer Chief Analyst Carl Delfeld.

It was a tale of two earnings responses with Eli Lilly (LLY) and Si-Bone (SIBN) yesterday.

On Holding (ONON) is in full retreat mode since reporting what appeared to be mostly good earnings on Tuesday this week.

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!

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.