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Cabot Prime Plus Week Ending August 26, 2022

Stock Recommendation Tracker

The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any changes to our recommendations over the previous week. We include this table at the bottom of the Weekly Summary, and provide a link here at the top to the Stock Recommendations Tracker.

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo discusses the market’s pullback, which represents the first real test of the rally; it’s not pretty (especially not on Friday), but nothing has really changed with the evidence — and in fact, the most encouraging thing is that so many high relative strength stocks are still acting well. That doesn’t mean Mike’s pushing the envelope, but if you’ve been going slow and being selective like him, he’s OK mostly standing pat and seeing how the pullback plays out. Stocks discussed include ALB CELH DVN CF NUE NBIX PANW FSLR


How to Profit and Protect Your Portfolio in the Age of the US-China Rivalry

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue August 25: Most people in the market (and in life) think of a lot of things as black and white, good or bad, bull or bear … and, frankly, for the market anyway, that’s often a good approach. We’re trend followers, after all, and we’ve designed our indicators to mostly be green or red, telling us whether stocks are headed up or down. It’s often best to play things in a decisive manner.

Bi-weekly Update August 18: Continue to go slow but keep your optimist’s hat on, while looking for fresh leadership. In the Model Portfolio, we’re repositioning a few things—we’re cutting bait on Bumble (BMBL) and Halozyme (HALO), but we’re adding a half-sized position in Celsius (CELH) and doing the same in ProShares Ultra S&P 500 Fund (SSO). Our cash position will still be a bit below 60%.

Alert August 3: Today, we’re going to add a half-sized stake in Enphase Energy (ENPH), leaving us with around 70% in cash. We could have another new addition or two (or, ideally, average up in one of our current names if it reacts well to earnings), but today we’ll nibble on ENPH and go from there.

Cabot Top Ten Trader

Movers & Shakers August 26: The sharp dip that started late last week continued early in the week, but since then the market has stabilized somewhat—as of Friday morning (after Fed chief Powell started to speak, with what most see as some hawkish words), the major indexes are down in the 2% range, and, looking at their charts, the pullbacks to this point have been sharp but normal, with most hanging around their rising 25-day lines and still 3% to 4% above their rising 50-day lines. Yes, things could change, but the action to this point keeps the intermediate-term trend pointed up.

Weekly Issue August 22: This week’s list has a broad mix of names, some of which would look good on modest weakness. Our Top Pick is Wolfspeed (WOLF), which isn’t free and clear but showed outstanding power last week after earnings.

Cabot Undervalued Stocks Advisor

Weekly Update August 24: We moved shares of The Coca-Cola Company (KO) from Hold to Sell on valuation, and provide our view of Cisco Systems’ (CSCO) recent earnings report. Retailer Big Lots (BIG) reports soon. Who is making the right call on the market: Captain Tyne or crew member Bobby?

Monthly Issue August 3: The earnings deluge is here. We comment on earnings from our recommended companies including Merck (MRK) and Molson Coors (TAP).

Cabot Stock of the Week

Weekly Issue August 22: Qualcomm (QCOM) is the world’s largest supplier of chips for mobile devices. It also holds the patents for the key technology systems that are the backbone of all 3G and 4G networks. Chips account for over 70% of revenues while licensing from patents accounts for the rest, although the smaller area is more profitable and better insulated from competition.

Cabot Explorer

Bi-weekly Update August 25: This rise of the U.S. dollar against the yen, euro and pound as well as most other currencies in the world is a mixed blessing for investors. You can take your capital gains and head to Europe or Japan for a trip and imported goods will be cheaper. On the other hand, American companies and stocks will be hurt by their exports being more expensive to overseas buyers and their overseas earnings will be worth less in U.S. dollars when brought back to America.

Bi-weekly Issue August 4: Explorer stocks had a great week as Centrus (LEU) is up another 10%, Cloudflare (NET) adds 20%, Infineon (IFNNY) reports revenue jumping 33% and Ford (F) reports eye-popping sales results for July. Data and analysts are divided so stay cautiously optimistic and consider today’s new recommendation at the heart of U.S.-China rivalry.

Cabot Small-Cap Confidential

Weekly Update August 25: After bumping up against its 200-day moving average line the S&P 500 has pulled back this week. The S&P 600 Small Cap Index has followed suit. Thus far this doesn’t look like anything other than a normal pullback, and one that’s not at all surprising given the big-picture cross currents out there. An uncontested break and rally above either index’s 200-day line would have been more surprising.

Monthly Issue Aug 4: The market is getting stronger and higher-growth names are leading the charge. This month we dig into an overlooked company with a global payments platform that’s helping solve digital payment challenges in complex industries.

Cabot Dividend Investor

Weekly Update August 24: The torrid 17% rally from the June low is sputtering. That makes this market dangerous. After bleeding all year because of persistent high inflation and a hawkish Fed, the market rallied on newfound optimism. The market anticipates six to nine months down the road and investors envisioned a Fed that is all done hiking rates by then amid falling inflation. But that’s optimistic. And the optimism has been waning.

Monthly Issue August 10: We are likely in a recession. Meanwhile, inflation continues to rage on. That means stocks will have to navigate an environment of both recession and inflation, at least for the rest of the year.

Cabot Early Opportunities

Monthly Issue August 17: With inflation data showing progress in the right direction (i.e., down), U.S. GDP growth not looking awful (Atlanta Fed model now saying Q3 GDP growth of 1.8%) and expectations for the Fed’s target interest rate topping out at 3.5% to 3.75% (end of this year/beginning of 2023), the market appears to be a firm believer in the “bad to better” trend.

Alert August 16: With the market having put on a great show over the last month and a new Issue of Cabot Early Opportunities on deck for tomorrow, let’s take this opportunity to trim our portfolio a little.

Cabot Profit Booster

Weekly Issue August 23: Today we are adding a recent earnings season winner, though because of the weakness in the market the last two trading days, we are playing it somewhat defensively.

Cabot Micro-Cap Insider

Weekly Update August 24: After quite a strong rip higher the first half of August, U.S. markets have pulled back sharply. The S&P 500 touched its 200-day moving average last week and then immediately started to retreat.

Alert August 17: Sell Dorchester Minerals (DMLP)

Monthly Issue August 10: Is the Bear Market Over? The first half of the year was painful, with the S&P 500 falling ~20%. July was a lot more fun, as the S&P 500 rallied 9%.

Cabot Income Advisor

Monthly Issue August 24: The recent rally caused much consternation on Wall Street. The main question has been this: Is it the end of the bear market or a bear market rally? After the pandemic low, the market took off and never looked back. But that was a very unusual situation. In most bear markets, rallies like we just saw are common. In fact, there were six or seven double-digit rallies during the financial crisis bear market of 2008-09 before the indexes bottomed. The fact that the recent rally seems to be petering out well below the high is raising concern that it was indeed a bear market rally.

Weekly Update August 17: It’s starting to feel like a bull market. But let’s not bank on it just yet. Inflation is moderating, and many see an end to the Fed tightening cycle by early next year. The Fed part is probably true.

Cabot Turnaround Letter

Weekly Update August 26: We are moving shares of Lamb Weston Holdings (LW) from Buy to Sell as the shares have essentially reached our price target. We also comments on Macy’s (M) earnings, the Jackson Hole Economic Symposium and some irony provided by LastPass.

Weekly Alert August 26: Today, we are moving shares of Lamb Weston Holdings (LW) from Buy to Sell.

Monthly Issue August 3: This note includes our review of earnings from Adient (ADNT), Conduent (CNDT), Gannett (GCI), Goodyear Tire & Rubber (GT), Ironwood Pharmaceuticals (IRWD), Kaman Corporation (KAMN), Molson Coors (TAP), Organon & Co. (OGN), Vodafone (VOD), Western Digital (WDC) and Western Union (WU).

Cabot Money Club

Monthly Magazine September: remember when most people didn’t give too much thought to health insurance. And if they did, it was in a positive light. For example, my first memory of health insurance was when my sister Pat had her tonsils removed when she was 15. Right after that, my parents bought her a stereo! Of course, I asked why she got a stereo and my brother and I didn’t get anything—it wasn’t even her birthday!

Stock of the Month July 14: Interest rates are still rising, as the Federal Reserve boosted short-term rates by 75 basis points last month, to try to stem the growth of inflation. There are some signs that it may be working. The 30-year mortgage rate actually saw a couple of decreases early last week, but nudged a bit higher on Friday, to a 5.94% average national rate. And gas prices have declined nationwide to $4.66 per gallon, from $4.68 this time last week. I know that’s not much, but, hey, we’ll take what we can get!

Ask the Experts

Cabot Top Ten Trader

Question: Hi Mike. So since the S&P got rejected at the 200-day (moving average) ... doesn’t look good based on past bear markets. Any thoughts?

Mike: Well, I dunno, never found an edge there. I would say our long-term model never turned up, so that’s a reason we haven’t plowed in. If we had, yes, I would say the recent action might change that, but we’re still more than half cash and frankly many leaders are holding up, so I wouldn’t draw deep conclusions, at least not yet.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from January 12, 2022 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Pro member benefits.