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, Tyler Laundon talks about the continued strength in energy, financial, semiconductor and networking stocks. He discusses how growth stocks continue to search for support and how Monday’s snap back rally was an encouraging sign but how many of these names have been facing stress tests later in the week. Tyler runs through a number of ETFs that could be of interest to trend followers, whether they’re looking to buy into strength or into a growth pullback that could be (hopefully) in its final stages.
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue January 13: In our last issue we talked about the growing chasm between growth stocks and the rest of the market—basically the polar opposite of 2020—and said, “It’s always possible the wacky 2021 environment will continue, though we think the flip of the calendar should provide more clarity.” And so it did, in a bearish way—growth stocks keeled over in crash-like fashion even as many cyclical areas actually perked up.
Special Bulletin January 10: The market is continuing its downdraft, with the rest of the market being caught up in the selling, with growth stocks again leading the way lower. At this point, we’re OK giving things some extra rope, as the selling has become very obvious, but we’re also not going to violate any hard-and-fast rules. In the Model Portfolio, we’re going to let go of Datadog (DDOG) today as it’s sliced through our loss limit, which will hike our cash position to around 60%.
Bi-weekly Update January 6: Stocks failed to even bounce today despite all the selling of late. At day’s end, the Dow was off 171 points and the Nasdaq dropped 19 points. Well, you can put any label you want on it, but what we’ve seen since the start of the year has basically been a follow-on mini-crash in growth stocks—the meltdown in late November and early December was one, and there was a quick retest in mid-December, but this one is even more intense.
Cabot Top Ten Trader
Movers & Shakers January 14: This week certainly wasn’t the maelstrom last week was, but after a promising bounce following Monday morning’s wipeout, the sellers have come back around for things—on the week, the major indexes are lower, though the declines aren’t horrific, especially for broader indexes like small and mid-caps.
Weekly Issue January 10: Last week was an awful one for growth stocks, many of which had already been sitting well-off their highs and then were taken apart as the calendar flipped, with 15% to 20% declines seen in some former leaders last week alone. Mike’s Top Pick Huntsman (HUN), a steady performer with a low valuation and a great cash flow outlook.
Cabot Undervalued Stocks Advisor
Weekly Update January 12: A lot can go right, and wrong, in the stock market this year. As value-oriented investors, we like our chances in both environments. We comment on encouraging news from Bristol-Myers Squibb (BMY) and raised our price target on Conoco Phillips (COP) from 80 to 89. We also update subscribers on news and some related macro drivers like interest rates, oil, gold and the dollar.
Monthly Issue January 5: We comment on the abrupt shift in market sentiment in the past two weeks that is boosting the prices of our undervalued stocks, like Arcos Dorados (ARCO), up 17%, and Coca-Cola (KO) and Sensata Technologies (ST), which are reaching new all-time highs, relative to expensive hyper-growth stocks, as investors find that their healthy fundamentals haven’t been fully reflected in their share prices.
Cabot Stock of the Week
Weekly Issue January 10: Tim’s featured stock MP Materials Corp (MP), owns Mountain Pass, the only rare earth mining and processing facility of meaningful size in the Western Hemisphere. It currently produces 15% of globally available rare earth concentrates. Mountain Pass is based in California, while MP Materials is headquartered in Las Vegas, NV.
Cabot Explorer
Bi-weekly Update January 13: There is this widely held belief that January is a great month for investors. But I always throw cold water on this claim because the fact is, over the past 25 years, it’s been one of the worst months for stocks. During that span, the Dow Jones Industrial Average has produced a negative return more often than not in the month.
Bi-weekly Issue January 6: Carl’s new recommendation Butterfly Network (BFLY), is a revolutionary medical device powered by artificial intelligence that is already saving lives and will ultimately improve healthcare for Americans and billions more overseas. It addresses the need for the country to improve the efficiency of its medical complex that accounts for an incredible 20% of our economy but still delivers uneven, slow and costly services.
Cabot Dividend Investor
Monthly Issue January 12: Tom’s featured stock Global Ship Leasing (GSL) owns and charters containerships under fixed-rate charters to container shipping companies. The company deals in mid-size and smaller container ships, which are the workhorses of the main global containerized trade routes. Global is based in the Marshal Islands, with offices in London and Athens, and the stock trades on the New York Stock Exchange.
Weekly Update January 5: It’s a new year, and a new attitude. Investors tend to sober up after weeks of holiday slacking and refocus on the market. What are they saying? Although the year is in its infancy, the message at this very early stage is loud and clear. Energy and financial stocks are the most desirable. In just two and a half days, the financial sector of the S&P 500 is up over 6%. Energy stocks are up more than 10%.
Cabot Marijuana Investor
Update January 12: In a recent update, I used the phrase, “It’s always darkest before the dawn,” as I reasoned that the marijuana sector’s dreadful performance in 2021 was likely the prelude to a well-deserved rebound in 2022. And the news is still pretty dark.
Monthly Issue December 29: This issue has all the stocks of the U.S. multistate operators rated buy, because Tim sees a good chance for a January rally, so feel free to buy a little here. But don’t go crazy; until we see real trends, we won’t know where we should focus our efforts. Tim does have one new addition, tailored for conservative investors; it’s ScottsMiracle-Gro (SMG), which we’ll take a 5% position in.
Cabot Early Opportunities
Special Bulletin January 14: As we continue to balance the pursuit of opportunities with the desire to preserve capital/current gains we’re intently focused on stocks that are breaking down to new lows. Today we’ll take partial profits on another name and step completely away from one stock.
Special Bulletin January 13: Both Sprout Social (SPT) and Kornit Digital (KRNT) have made fresh lows today so we’re going to take partial profits by selling one quarter of each position. As always when we sell on weakness, the hope is that this is a terrible decision. However, we’re locking in partial gains of roughly 230% and 46% on these positions, respectively, so it could be worse.
Monthly Issue December 15: While there is a lot we could talk about this month – the relative outperformance of mega-cap tech (MSFT, AAPL, GOOGL, NVDA), thus far a “normal” correction in software stocks (happens once or twice a year) and seemingly positive data around vaccine effectiveness against Omicron – in the immediate term investors are most focused on interest rates. Tyler’s top pick is Allbirds (BIRD).
Cabot Profit Booster
Weekly Issue January 11: After a stellar 2021, the bears took over the first week of 2022 as the Dow lost 0.3%, the S&P 500 fell 1.9% and the tech-heavy Nasdaq tumbled 4.5%. The bearishness continued throughout most of Monday’s trading session. Jacob’s new stock recommendation is Marathon Oil (MRO).
Update December 22: Last Friday the Goodyear Tire (GT) December 23 call that we sold in late November for $1.17 expired worthless, leaving us with a stock position, and without a new call sale. Today, as market conditions are improving (maybe) I am going to sell a new call against our GT stock holding to create even more yield.
Cabot Income Advisor
Weekly Update January 12: So far, 2022 is playing out as expected. But of course, this is only the eighth trading day of the year. After the sensational returns of the last 22 months, stocks simply can’t maintain that pace, especially since indexes are high and problems are gaining momentum. But it isn’t gloom and doom. We are still in the early phases of a recovery and bull market that should last years longer.
Monthly Issue November 24: This great and epoch market recovery might be finally running out of gas. The S&P 500 is up over 100% since the bottom in March 2020. That means the market has gained as much value since that bottom as it had accumulated from the beginning of time until March of last year. It’s also up about 40% from the high before the pandemic and 10% just since early October. Such returns simply cannot continue.
Cabot Turnaround Letter
Weekly Update January 14: We comment on earnings from Wells Fargo (WFC). We are placing WFC shares, as well as shares of Baker Hughes (BKR) and Marathon Oil (MRO) under review as they are trading above our price targets. Nokia (NOK), Duluth Holdings (DLTH) and Ironwood Pharmaceuticals (IRWD) provided incrementally favorable updates for their coming reports.
Monthly Issue December 29: This month’s issue includes our Top Five Stocks for 2022, our annual market review and outlook for 2022, as well as our update on the bankruptcy and high-yield bond markets. We add Brookfield Asset Management Reinsurance Partners Ltd (BAMR), an under-appreciated recent spin-off, as a new Buy.
Ask the Experts
Cabot Growth Investor
Question: Hi Mike! Thanks for the newsletter! Today for the first time I made the grave mistake of setting up a buy in a security for 930AM cuz it looked like it was going up premarket. however after it gobbled up my 15k it went for a 10%loss! Generally speaking, is 930 a bad time to buy? Is it better to wait? I also don’t want to miss it if there is a 10% jump.
Mike: Thanks for writing. So, yes, we would try not to buy right at the open – if you do, it’s not a sin, but you’re leaving yourself open to buying on some sort of gap. If possible, try to buy mid-day or something after the open (10, 1030, whatever). I think the most important thing though is to be consistent. Really, there’s no “edge” in when you buy, but usually at the open isn’t ideal.
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 member benefits.