“Resilient” is not a word that would have described stocks in 2022, but through the first quarter of 2023, that’s precisely what they’ve been in the face of a bank meltdown, more interest rate hikes and still-high inflation. It bodes well for the back half of the year when perhaps some – maybe all? – of those worries subside. In the meantime, we have to say goodbye to a couple underperforming stocks today, while adding a growth play that lies outside U.S. borders. It’s a Mexican consumer products stock that takes advantage of Mexico’s cheap manufacturing costs – and the stock is up 22% year to date!
Banking crisis fears have subsided, and while the fallout from Silicon Valley Bank, Silvergate and Signature Bank simultaneously going under is sure to be felt in the market for weeks and months to come, it’s also not looking like 2008 out there, at least not at the moment. Still, we could use some more safety in the portfolio, and today we add it in the form of a large-cap healthcare giant that’s a reliable dividend payer, boasts one of the industry’s best drug pipelines, and has been outperforming the market for years. It’s a favorite of Cabot Dividend Investor Chief Analyst Tom Hutchinson, who recently upgraded the stock to Buy.
All Quiet on the Western Front is an ironically titled movie about war that won several awards at last night’s Oscars. It could loosely describe the last few days in the U.S. stock market too, as the collapse of three major banks (and counting?) has abruptly sent stocks tumbling back down into bear market territory and brought anxiety, uncertainty and volatility back to the forefront. So today, we’re selling our one bank stock, plus one other shaky growth stock, but making room for a cookie-cutter retail company that’s on solid ground. It’s a longtime favorite of Cabot Growth Investor Chief Analyst Mike Cintolo.
Stocks rebounded nicely last week, giving hope that the 2023 stock market may be far more resilient than the 2022 market – which could eventually get us out of this bear market malaise. That makes it a good time to buy one of the blue-chip tech stocks that were infamously beaten into submission by last year’s indiscriminate selloff in all things technology. Fortunately, Tyler Laundon is recommending just such a stock – a name this is familiar to all, and yet is embarking on some exciting new ventures that the general public might not be fully aware of. Today, we add this mega-cap technology giant to the Stock of the Week portfolio.
Stocks continued to retreat last week, ensuring a down February after a very promising January. Still, the latest pullback has been fairly modest, with the 200-day moving average now acting as a floor instead of a ceiling, as it did for most of 2022. With the market in a state of flux, we’re adding another dividend stock today – a household name that used to be part of the Stock of the Week portfolio before we sold it late last summer. That looks like a mistake, as the stock has risen 11% since, and seems to be gathering more steam of late. It’s a longtime recommendation of Cabot Dividend Investor Chief Analyst Tom Hutchinson.
The market has hit its first real rough patch of 2023, but so far the damage has been fairly limited. Still, it makes sense to add some protection, so today we’re adding a value stock that’s been one of the better performers in Bruce Kaser’s Cabot Undervalued Stocks Advisor portfolio for the past six months – but still has plenty of upside. Also, with the Stock of the Week portfolio at max capacity, we are parting ways with several positions to clear out some room for better opportunities in the coming weeks.
An improving stock market brings our Stock of the Week portfolio to capacity, 20 stocks, with today’s addition of a fallen growth stock whose name you will almost certainly recognize. It’s a company whose business was hampered more than most during Covid, but has now returned to pre-pandemic levels – and is on track to resume its prior growth trajectory in the years ahead. And the stock is finally playing catch-up. It’s a new addition from Cabot Growth Investor Chief Analyst Mike Cintolo.
The stock-market picture continues to improve, and it’s possible the current rally is more than yet another head fake; it could be the start of a new bull market. While we’re not there yet, there’s reason for optimism. So today, we take another big swing by adding a fast-emerging electric vehicle maker that has struggled since its IPO last June but is showing signs of life lately. It’s a recent recommendation from Cabot Explorer Chief Analyst Carl Delfeld.
It’s been an encouraging start to the year for stocks, but another Fed rate hike – and whatever choice words Jerome Powell has to say – could throw the brakes on the rally this week, at least temporarily. To prepare for another potential pullback, today we’re adding some protection in the form of a high-yield dividend payer from the healthcare industry. It’s a stock with some real momentum – up 18% in the last five weeks – but still trades at about half of where it was a year ago. And Tom Hutchinson just upgraded it to Buy in Cabot Dividend Investor.
The market has been resilient through the first few weeks of 2023, giving hope that a much better year lies ahead for investors. Potential potholes abound (earnings season is underway, another Fed rate hike next week, a possible recession looming, etc.), but for now, there’s reason for optimism. With that in mind, we take another big swing today by adding a mid-cap technology stock that was just recommended by Cabot Early Opportunities Chief Analyst Tyler Laundon.
The new year is off to a good start, with stocks across the board showing true signs of momentum and very few still in the doldrums. Several of our Stock of the Week positions, in fact, are hitting either all-time highs or 52-week highs! But just in case this is yet another bear market rally, today we’re covering our bases by adding a big, well-known bank trading at bargain prices. It’s a longtime recommendation from Cabot Undervalued Stocks Advisor Chief Analyst Bruce Kaser – and one that Bruce says has more than 60% upside.
2023 has started with a bang, pushing a couple stocks in our portfolio to new all-time highs! Both of those high fliers have benefitted greatly from the return to relative normalcy in the wake of Covid, so today we add another stock that stands to get a direct bump from China’s reopening – or at least the loosening of its draconian “zero Covid” policies. The company was a pre-pandemic favorite of Cabot Top Ten Trader Chief Analyst Mike Cintolo and looks like a great value pick now as its business picks up in earnest. So, he’s recommending it again.
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.
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.