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Cabot Prime Plus Week Ending May 13, 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 says the story remains the same -- there are many signs flashing now that usually flash near major lows, but to this point the market hasn’t responded, which has kept him in a defensive stance. He does review many commodity names, especially in the energy sector, where he sees some potential near-term setups, but for the most part he’s sitting on his hands and practicing patience until the sellers finish up their work.


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Advisory Services

Cabot Growth Investor

Alert May 9: The market’s implosion is continuing today, with the indexes hitting new lows and many individual stocks in freefall. The selling is getting emotional, and the conditions are in place for some sort of low in the market soon, but those secondary indicators have had no effect in recent days.

Bi-weekly Issue May 5: The market has been up and (mostly) down, but not much has changed with our thoughts: The primary evidence remains terrible, though we continue to see more than a few rays of light from some secondary indicators. For now, we’re remaining defensive (we sold two more half positions this week) and are patiently awaiting the bulls to return.

Bi-weekly Update April 28: In the Model Portfolio, we’re now 64% in cash after another partial sale of Devon Energy (DVN) earlier this week; our only change tonight is moving Palo Alto Networks (PANW) to Hold.

Cabot Top Ten Trader

Weekly Issue May 9: Today was another day of bloodletting, with the major indexes and many former leaders continuing to melt down. Short-term, there’s little doubt things are getting emotional—thus, it’s certainly possible we’re close to a low point, but of course you could have said that a few days ago as well.

Movers & Shakers May 6: After two straight horrible weeks, the major indexes are actually about unchanged so far this week, but that doesn’t really tell the full story. Markets did stage a nice rebound after a tedious early-Monday-morning dip, rallying even after the Fed’s rate hike on Wednesday, but yesterday’s action brought the market right back down to its lows.

Cabot Undervalued Stocks Advisor

Weekly Update May 11: The stock market’s enduring slide must be driven by something – the S&P500 rarely (but occasionally) falls 16% in four months for “no reason.” No doubt the long list of issues led by inflation, war in Europe, the end of cheap and easy money, the cut-off of generous stimulus checks and a possible recession feature large.

Monthly Issue May 4: It seems that most of the pandemic-driven adrenaline rush in speculative stocks has burned off, with literally hundreds of names down 60% or more from their peak prices. And, more than a few highly notable stocks, including Netflix (NFLX) and DocuSign (DOCU), have given up all of their pandemic gains and then some.

Cabot Stock of the Week

Weekly Issue May 9: The market was hit hard again last week, so all trends remain down, and increased caution is still advised. This week I’m selling two stocks that have weakened since reporting first-quarter results last week, but I’m also upgrading one to buy!

Cabot Explorer

Bi-weekly Issue May 12: A difficult stretch causes us to sell two underperformers this week but we move forward today with a high-quality Japanese company at the heart of an unstoppable trend and a high-quality stock on sale.

Bi-weekly Issue May 10: Based on market conditions and to limit losses, I suggest you sell the following two Explorer recommendations: StoneCo (STNE), Fisker (FSR)

Bi-weekly Update May 5: The Federal Reserve, America’s central bank, raised its benchmark rate a half percentage point yesterday as assets that investors perceive as safer were among those to rally. While macro issues such as inflation and interest rates are certainly important, in the end it will be company performance relative to expectations that will be decisive.

Cabot Small-Cap Confidential

Update May 12: There is no shortage of data pointing to just how bad this market is. With year-to-date (YTD) performance for the S&P 500, Nasdaq and S&P 600 of -17%, -27% and -18%, respectively, this is one of the worst YTD starts in decades.

Alert May 11: Xometry (XMTR) delivered quarterly results ahead of expectations this morning. Revenue of $83.7 million (+91%) beat by $2 million while adjusted EPS of -$0.27 beat by $0.09. Active buyers up 44% to 30,683.

Monthly Issue May 5: The market remains very challenging for high-growth stocks. While I have a list of innovative companies I’m excited to recommend (at some point), for now we’ll continue to diversify our portfolio with more value-oriented names.

Cabot Dividend Investor

Monthly Issue May 11: It might not be too early to bargain hunt very selectively. Companies that are likely to continue to grow earnings and the dividend are likely to recover. There is one such opportunity in the cannabis sector.

Weekly Update May 4: The Fed meets today and is widely expected to raise the Fed Funds rate by 0.50%. That would be the largest single-meeting rate hike in more than twenty years. It’s necessary because the Central Bank is a million miles behind the curve in countering this high and persistent inflation, currently running at more than 8%.

Cabot Early Opportunities

Alert May 10: Earnings Updates: Shockwave (SWAV) Remains a HOLD. TaskUs (TASK) Moves to SELL.

Alert May 9: Earnings Updates: Sell Piedmont Lithium (PLL) and Triumph Group (TGI). Sell One Quarter CrowdStrike (CRWD)

Monthly Issue April 20: In the April Issue of Cabot Early Opportunities, we take a look at the earnings calendar for our current portfolio and spread new research around by covering a diverse group of small-cap companies. We have a newly public (again) pet retailer, a leaner and meaner defense and aerospace company, and a rising star in the fitness studio space. We also upgrade two stocks from our Watch List (and ditch a few others), including a key supplier for the EV market and a rapidly growing IT services company.

Cabot Profit Booster

Weekly Issue May 10: There is no sugarcoating it: We are in the midst of a pretty nasty bear market, which unfortunately means we are going to be stopped out of our Cleveland-Cliffs (CLF) position today.

Alert April 14: Today is the expiration of April options. Because I am on vacation this week I won’t dive deep into the profits, and one potential loss, for these positions until next week. However, most importantly, for today the “headline” is that you don’t need to act on any of our April positions.

Cabot Micro-Cap Insider

Monthly Issue May 11: Today, I’m recommending a company that will benefit from the post-pandemic travel boom.

Weekly Update May 4: While I’m grateful that the pandemic has faded and everyone is getting back to normal, there is one downside. During the pandemic, my family had a stretch of two years of amazing health. No Covid (luckily!), no flu, and no colds. That has all changed.

Cabot Income Advisor

Weekly Update May 11: It looked grim for a while there. And we’re certainly not out of the woods yet. But hope has stopped the market decline, at least for now.

Monthly Issue April 27: Stocks are turning distinctly more bearish in the near term as slower growth in China hits a market that was already teetering in anticipation of a more aggressive Fed.

Cabot Turnaround Letter

Monthly Issue May 4: One of the enduring features of the stock market is that near-term share prices are driven by momentum and narratives. While this may yield huge money-making stocks on the way up, losses can be devastating on the way down. Fortunately for value investors, downturns driven by negative momentum and unfavorable narratives can create impressively attractive opportunities.

Weekly Update May 6: This week’s Friday Update includes a summary of the recent Cabot Turnaround Letter, and comments on earnings from 12 companies including Adient (ADNT), Berkshire Hathaway (BRK/B), Conduent (CNDT), Gannett (GCI), Goodyear Tire & Rubber (GT), Ironwood Pharmaceuticals (IRWD), Kaman (KAMN), Marathon Oil (MRO), Molson Coors Beverage Company (TAP), Organon (OGN), Shell plc (SHEL) and ZimVie (ZIMV).

Cabot Money Club

Stock of the Month May 12: As Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader always says, “you shouldn’t fight the tape.” The markets are battling it out these days, trying to find a bottom. The constant news cycle of Russia-Ukraine, rising rates (up 0.5% last week) and increasing inflation are causing a severe case of market indigestion and volatility.

Monthly Magazine April 29: Since the market bottom on March 6, 2009—when the Dow Jones Industrial Average sunk to 6,469.95—investors have lined their pockets with lots of coin. Sure, COVID sent the markets reeling—down to 19,173.98 on the Dow in March 2020—but since then, boy, have we recovered! Despite recent volatility—due to rising interest rates and inflation, as well as the war in Ukraine—the Dow is getting close to breaking records again, closing at 35,116.35, as I write this.

Cabot ETF Strategist

Monthly Issue May 10: One key tenet of asset allocation is risk management. You’ll find that principle to be much more salient when it comes to investing an entire portfolio, as opposed to simply trading individual stocks.

Weekly Update May 3: Investors always like a safe place to salt away some cash, particularly during a period of market volatility. Traditionally, that’s been money market funds, or as part of an asset allocation strategy, many have turned to short-term investment-grade bonds.

Ask the Experts

Cabot Small-Cap Confidential

Question: Hi Tyler, thoughts on this market?

Tyler: Big picture, there are so many transitions in the economy/world that it’s hard for most investors to have much conviction, and so we get these volatile swings, which only exacerbates uncertainty. Not a lot of incentive to step in to buy in a meaningful way. Maybe we’re in the final innings of putting in a workable low (hopefully market can hold today). Sentiment sure is the pits. Obviously I can’t speak for others but some of these stocks seem silly to sell at these levels. Even if they go a little lower, and we get a recession. A lot of the conference calls I listen to sound pretty good. But we sure operate in a humbling field. Bottom line for me is trying to maintain some exposure (even if dwindling position sizes) to those names I think can be up significantly 6, 12, 18 months from now. I also have a list of names that seem to have powerful business momentum, but aren’t getting credit for it now. Being patient with those.

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.