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Cabot Prime Plus Week Ending October 7, 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 talks about the market’s interesting week, with some noteworthy early-week breadth on the upside and more than a few stocks that perked up. Of course, two days isn’t enough to change the trends, so Mike remains heavily in cash, is keeping any positions small and is building a watch list of resilient names for when the bulls show up for good. Stocks included in this video: LVS ASO NBIX LPLA CHRD FANG DKS ISEE.


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Advisory Services

Cabot Growth Investor

Bi-weekly Issue October 6: From a top-down perspective, there are some rays of light out there–some of this week’s up volume has been very rare, and it comes on the heels of an onslaught of pessimism. That said, none of our indicators have flashed green, and the biggest thing we’re still seeing is selling on strength–this week, Enphase cracked and forced us to sell. We are adding two half-sized positions tonight in stocks from our watch list, but we’re remaining defensive with 78% in cash.

Alert October 5: The market has a solid start to the week, and there were some intriguing breadth measures during the pop. But our market timing indicators are still clearly negative, and more important, we’re actually seeing growth stocks either not participate much on the upside—or start to crack on today’s selling. This bulletin concerns Enphase (ENPH), which has been a port in the storm but is decisively breaking down today; we’re cutting bait here and holding the cash.

Bi-weekly Update September 29: Remain cautious. There’s not much new to say about the market—it’s weak, the trend is clearly down and more resilient stocks are beginning to get hit. Panic is clearly setting in, so our antennae are up for any sort of turn higher, but as always, we have to see it first before acting on it. We sold our stake in Devon Energy (DVN) on a special bulletin earlier this week, leaving us with just two stocks and a cash hoard of 79%. Details below.

Cabot Top Ten Trader

Movers & Shakers October 7: Overall, it’s been an interesting week: The major indexes have bounced nicely even including a morning selloff on the jobs report, up in the 3% range, and early this week we did see some unusual upside breadth—Tuesday’s NYSE up volume outpaced down volume by 20- to 25-to-1 (depending on exactly how you measure it), which, when coming after a selling deluge, has frequently marked low points.

Weekly Issue October 3: This week’s list has another crop of resilient stocks from a variety of different areas, from medical to energy to restaurants. Our Top Pick is a familiar growth stock that went through the wringer and is now base-building normally despite the market’s grumpiness.

Cabot Undervalued Stocks Advisor

Monthly Issue October 5: Many industries are undergoing the first major inventory cycle in a generation, which investors may not be evaluating properly. Also, barring an economic collapse, buying Gates Industrial (GTES) at 8.1x estimated 2023 earnings, Dow (DOW) at 7.9x and Allison Transmission (ALSN) at 5.3x seem like smart opportunistic moves for long-term investors and traders alike.

Weekly Update September 28: Investing lessons from football coaching legend Woody Hayes (Ohio State) and Warren Buffett. A quiet week for news on our recommended companies.

Cabot Stock of the Week

Weekly Issue October 3: Stocks were basically neutral in the last week, with some signs of life bubbling up beneath the surface. In fact, most of our stocks had good weeks – and a couple of them were very good. Still, it remains highly volatile out there, and the selling isn’t necessarily over. And that makes it a good time to add another contrarian play. This week, that means adding our first (ever?) fund, which takes advantage of the fast growth happening outside U.S. borders – and it’s severely undervalued. It’s a recent recommendation from Cabot Explorer chief analyst Carl Delfeld.

Cabot Explorer

Bi-weekly Update October 6: Stocks struggled back from early losses yesterday after blue chips posted their biggest two-day gains in more than two years.

Bi-weekly Issue September 29: All three major U.S. indexes were up around 2% yesterday as the Bank of England stepped in to stabilize the pound, but the recovery looks fragile as sentiment remains mixed at best in the short term. Explorer stocks drifted lower this past week and we remain defensive looking for asymmetric plays where the upside potential exceeds downside risk.

Cabot Small-Cap Confidential

Monthly Issue October 6: The market has been trying to climb off its knees this week as we’re finally getting some solid evidence that both inflation and the job market are cooling.

Weekly Update September 22: Well, the market got exactly what it expected yesterday when the Fed hiked by 75bps (the odds were over 80% that’s what they’d do). Fed Chair Jerome Powell’s messaging was consistent with what he said back in August in Jackson Hole.

Cabot Dividend Investor

Weekly Update October 5: After an awful September and third quarter, the market roared back earlier this week on bad economic news.

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

Alert September 23: With the market continuing to have indigestion following the Fed’s 75bps rate hike and higher-for-longer messaging (regarding interest rates), we’re going to trim our position in Toast (TOST) today to reduce the risk of things getting away from us. This sale follows sales of other names last week and early this week, several of which were to lock in partial gains.

Monthly Issue September 21: This month’s issue features a couple of old friends that are shaping up again, plucks one healthy stock off the Watch List and digs into two fresh names that seem to have the wind at their backs.

Alert September 16: With the market looking iffy, the Fed on tap next week and a new Issue slated for Wednesday, I’m going to reduce our exposure a little today by selling Samsara (IOT).

Cabot Profit Booster

Weekly Issue October 4: The month of September was flat-out ugly for the market as the S&P 500 fell 9.3%, its worst monthly drop since March 2020 (Covid). And the numbers were similarly negative this last week as the S&P 500 and Dow lost 3%, and the Nasdaq fell another 2.7%.

Alert September 16: August and September have brought plenty of ups and downs for the stock market, and not surprisingly the Profit Booster also had its ups and downs. One of our trades didn’t work, two are good, and two will expire for full profits. Let’s dive in …

Cabot Micro-Cap Insider

Weekly Update October 5: I love Twitter. The social media platform, not the stock. While it’s easy to get lost “doom scrolling” on Twitter, I find it to be an incredibly helpful investment tool. Two terrific charts showed up in my feed this week.

Monthly Issue September 14: This month, I pulled the plug on Dorchester Minerals (DMLP). I still love the business model and hope to be able to buy it at another time, but it didn’t seem like an obvious opportunity (like it did in 2020).

Cabot Income Advisor

Weekly Update October 5: It’s been a furious rally so far this week. It’s only lunchtime on Tuesday. But I’ll take it. September was an abysmal month, in a rotten third quarter, in an awful 2022. Investors can’t contend with persistent high inflation, a hawkish Fed, and a recession. The most recent selloff took just about every stock down with it.

Monthly Issue September 28: Markets go up and down. Economies boom and bust. Investors get scared and they get greedy. But one of the few constants in an ever-changing investment landscape is the need for income. And investor demand for income is growing as the fastest growing segment of the population is 65 and older and retired.

Cabot Turnaround Letter

Alert October 7: Today we are raising our rating on shares of Macy’s (M) from Hold to Buy.

Weekly Update October 7: What to buy when the bear market drags down every new idea? We screen for attractive stocks with low P/E multiples (below 5.5x) and rising estimates, and find Chord Energy (CHRD), Group 1 Automotive (GPI), Jackson Financial (JXN) and Sylvamo Corporation (SLVM). Our second screen is for attractive stocks with high dividend yields, producing KeyCorp (KEY) and Weyerhaeuser (WY), and we suggest investors avoid Altria Group (MO) and 3M Corporation (MMM) whose dividends look vulnerable. Our feature recommendation this month is Dow (DOW), a high quality company with beaten down shares and a 6.3% dividend yield. Check out the unique and valuable Catalyst Report.

This week: Raising our rating on Macy’s (M) from Hold to Buy, with a $20 price target, as investors are pushing the shares down past what is reasonable for this improved company. And, it is time for investors sitting on excess cash to nibble on overly discounted shares. Our annual trip to the shopping mall finds immense discounts but also a lot of unmerchantable goods.

Monthly Issue September 28: What to buy when the bear market drags down new idea? We screen for attractive stocks with low P/E multiples (below 5.5x) and rising estimates, and find Chord Energy (CHRD), Group 1 Automotive (GPI), Jackson Financial (JXN) and Sylvamo Corporation (SLVM). Our second screen is for attractive stocks with high dividend yields, producing KeyCorp (KEY) and Weyerhaeuser (WY), and we suggest investors avoid Altria Group (MO) and 3M Corporation (MMM) whose dividends look vulnerable. Our feature recommendation this month is Dow (DOW), a high quality company with beaten down shares and a 6.3% dividend yield.

Cabot Money Club

Monthly Magazine October: Finding the right time to retire is tough in any market, but today’s volatility, inflation and rising rates make that decision even harder. If you’re considering (or are in) retirement, here’s how to save, how to spend, and, most importantly, how to boost your retirement nest egg.

Stock of the Month September 15: The market has continued its volatility since mid-August, rising above 34,000 on the DJIA, then contracting, just to bolt upward again at the end of last week. Economic uncertainty and fears of a recession, although recently economists have been decreasing their likelihood for a 2022 recession, effectively pushing that into 2023.

Ask the Experts

Cabot Top Ten Trader

Question: Hi Mike - As Growth Investor (and me) is holding so much cash, I’ve wondered if I should be doing something smarter with my cash as I wait to reinvest it. What’s your perspective? Is it worth moving it to a high-yield savings account? Or money market account? Or treasuries? I don’t have any experience with the latter two options. Thanks for any input you have,

Mike: Thanks for writing. Popular question these days.So we value liquidity so we can quickly put stuff back to work, so we just use money market funds … though, at least at Fidelity (where I personally use it), it actually does yield 2% to 2.5%. But the point is that’s a growth portfolio and we’re trying to make money in growth stuff – if you have “extra” money you want to invest for income, sure, no problem, but we’d prefer just keeping it liquid so you can take advantage of any opportunities, especially if you’re getting 1% to 3% anyway at a money fund – the extra juice from a savings account likely isn’t much anyway.

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.