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Cabot Prime Pro Week Ending April 30, 2021

Cabot Prime Pro Week Ending April 30, 2021

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 discusses the high level strength in the market and how that masks some of the turbulence that continues under the surface in certain sectors. He runs through major economic news from the last week and looks at earnings reactions from mega cap tech stocks. Tyler then jumps into small and mid cap names that should be on your radar ahead of earnings reports next week. Stocks discussed: MSFT, AAPL, FB, GOOG, AMZN, SHOP, PINS, TWTR, VRNS, SPT, UPWK, HUBS, QTWO, BILL, AVLR.


3 Power Stocks to Buy Right Now


Cabot Micro-Cap Insider Member Call


Advisory Services

Cabot Growth Investor

Bi-weekly Update April 29: It remains a very tricky environment for growth stocks, with most names near new highs finding sellers and earnings reactions (so far) being underwhelming (Pinterest is now on a tight leash). That said, we do see a lot of high-quality setups, so we’re ready to put some money to work, but we need to see buyers actually step up before stepping further into the meat-grinder environment. We have no changes tonight, though we’ll be on the horn if some bullish earnings moves have us putting money to work in the days ahead. Our cash position stands just south of 50%

Bi-weekly Issue April 22: Two-plus months ago, speculation was running rampant and most growth stocks had made giant moves over the prior six to nine months. So when the sellers finally stepped up and cracked the intermediate-term uptrend in many growth stocks and the Nasdaq itself, our main thought was that time would be needed to wear/scare out the weak hands and re-set these stocks’ longer-term advances.

Cabot Top Ten Trader

Movers & Shakers April 30: For the second straight week, the major indexes didn’t do much of anything; as of Friday morning, most are higher by 0.5% or less. And individual stocks, while obviously a bit more hectic, also didn’t see many major moves (major breakouts or breakdowns), except for a couple earnings reactions. Mike has four buy recommendations.

Weekly Issue April 26: Earnings season is always important, but it looks even more so this time—many growth stocks have been sitting around for the past two to three months (some even longer), while a decent number of cyclical names have been mostly up-and-down for the past four to five weeks. Thus, a collection of positive, powerful reactions to earnings could result in a bunch of good-looking buying opportunities … but, as always, we have to wait to see that happen before pouncing. Mike’s Top Pick Steel Dynamics (STLD), just leapt to new highs out of a tight area on huge volume.

Cabot Options Trader and Cabot Options Trader Pro

Note that the current week’s Weekly Update, earnings updates, position updates and stocks on watch are posted on the website in the Market Update section, which is deleted each week.

Cabot Options Trader Pro Trade Alert April 30: Hedge: Buy the S&P 500 ETF (SPY) September 415/375 Bear Put Spread (exp. 9/17) for $10.00 or less.

Cabot Options Trader Basic Trade Alert April 30: Hedge: Buy the S&P 500 ETF (SPY) September 415 Puts (exp. 9/17) for $19.00 or less.

Cabot Options Trader Pro & Basic Stocks on Watch April 29: Last week Snap (SNAP) reported a blowout earnings report, and in the initial reaction to this news the stock rose from 57 to a high of 63. However, that earnings pop was short lived as the stock fell back to a low of 57/58 in the days that followed.

Cabot Options Trader Pro & Basic Earnings and Stocks on Watch April 28: Earnings season is full of ups and downs, and unfortunately our first portfolio holding to report is having a sour reaction, as PINS is trading lower by 13% this morning. The earnings from Pinterest were good, though the company did acknowledge user growth could slow in the coming quarters.

Cabot Options Trader Pro & Basic Earnings April 27: Pinterest (PINS) will report earnings tonight after the close, and Ford (F) will report Wednesday after the close. Rather than sending two emails, because we are going to hold both positions through the events, this morning I am going to combine both stocks’ earnings preview.

Cabot Options Trader Pro Weekly Update April 26: Long positions: FCX, SONO, XLF, PINS, UBER, DKNG, F, GPS, CGC

Cabot Options Trader Weekly Update April 26: After weeks of steady decline to fresh one-year lows, the Chicago Board of Options Exchange Volatility Index (VIX) came alive again early last week as stocks struggled. The VIX spiked over 20% higher in the first two days of the week, before ending last week near it’s lows.

Cabot Undervalued Stocks Advisor

Weekly Update April 28: When looking at an investment idea, investors may want to replicate this intake process, tweaked of course for a clearly different (and less urgent) task. By using a consistent process, regardless of whether the idea comes from a friend, that off-beat relative, an investment broker or a newsletter, you can better categorize and screen incoming ideas. Bruce has one new buy: Arcos Dorodos (ARCO).

Monthly Issue April 7: As one might expect in a value-oriented investment advisory, we focus a lot on a company’s valuation. We want to understand what the company is worth, both today and in the foreseeable future, and then buy its shares at some discount to that value. Determining a company’s underlying value is difficult, and more of an art than a science. There are many valuation approaches, including using a price/earnings multiple, discounted cash flow, EV/EBITDA multiple and net asset value. Bruce has one portfolio change: Tyson (TSN) is moving from Buy to Hold.

Cabot Stock of the Week

Weekly Issue April 26: The bull market is alive and well, though divergences and rotation continue to add a challenge to the process of identifying the market’s leaders. Tim’s featured stock Nvidia (NVDA), has thrived because it has exposure (usually a top position) in a couple of long-term growth areas. The first is gaming, where Nvidia has long been a major player. As gaming systems have become more advanced, they’ve generally leveraged use of the company’s many graphics processors. Tim has no portfolio changes.

Cabot Explorer

Bi-weekly Issue April 29: Major corporations are sitting on a pile of cash. Wouldn’t that be a nice problem for all of us? This has been a decade-long cash buildup but it has gotten quite a boost from the pandemic. And the trend is even starker outside America. Carl’s new recommendation Draganfly (DFLYF), manufactures and sells commercial drones, also known as unmanned aerial vehicles (UAVs), worldwide. Its products include quad-copters, fixed wing aircraft, ground based robots, and handheld controllers, as well as software used for tracking, live streaming, and data collection. Carl has no portfolio changes.

Bi-weekly Update April 22: Wall Street has finally woken up to Southeast Asia’s great promise. The region is more populous than the European Union or North America and western investors are now looking for a chance to invest in this dynamic region that’s home to almost 700 million tech-savvy consumers. Specifically, they are hopeful of finding another Sea (SE), an Explorer recommendation based in Singapore that listed in New York in 2017 and has quintupled in the past year, to a mighty $125 billion market cap. Carl has one portfolio change: Anglo American (NGLOY) moves from Buy to Hold.

Cabot Small-Cap Confidential

Special Bulletin April 30: Goosehead Insurance (GSHD) reported after the close yesterday that Q1 revenue rose by 53% to $31.2 million (beating by $2.5 million) and adjusted EPS rose to $0.03 from $0.01 in the year-ago quarter (missing by $0.03). That pace of revenue growth was up from 48% in the quarter ended December 31, and well above the 13% revenue growth rate reported in the year-ago quarter.

Weekly Update April 29: Even though stocks have been wobbly today the last week has been very constructive for our portfolio. As of mid-day today, our portfolio is up an average of 4% from last Thursday’s close, and only two positions are down (neither by more than 2%). Several positions are up double digits, including Cardlytics (CDLX), Sprout Social (SPT) and Goosehead Insurance (GSHD), which reports after the close today. Tyler has no portfolio changes.

Monthly Issue April 1: Tyler’s new recommendation, Revolve (RVLV) is an e-commerce fashion retailer that focuses on Millennial and Gen Z consumers (ages 18 to 39) through two differentiated websites, REVOLVE and FORWARD. The company has a portfolio of 24 owned brands, each of which has unique attributes and is supported by independent marketing and relationships with influencers. Additionally, Revolve continuously finds new brands and designers to feature on its websites. Revenue growth from 2017 through 2019 averaged 25%, with revenue up 21% to $601 million in 2019. Revolve has been consistently profitable; 2019 adjusted EPS rose 14% to $0.50. The pandemic had a negative impact in all quarters of 2020, driving sales to drop 3% to $581 million and a 1% reduction in active customers. Management made operating adjustments to maintain profitability, and EPS rose 58% to $0.79.

Cabot Dividend Investor

Weekly Update April 28: The market just keeps marching higher despite increasing skepticism. The Promise Land of booming economic growth, trillions in stimulus and low interest rates continues to lure stocks higher. But many Wall Street analysts, in an effort to justify their salaries, are trying to get ahead of the curve and predict worsening times for the market. Tom has one portfolio change: Altria (MO) moves from Hold to Sell.

Monthly Issue April 14: This is an unusual environment to say the least. The market is looking ahead to the highest GDP growth in decades as vaccines end the lockdowns and restrictions. And forecasts continue to rise. At the same time, trillions in government stimulus will flood into the economy. Tom’s featured stock AGNC Investment Corp. (AGNC),is a mortgage real estate investment trust (mREIT) that invests predominantly in U.S. Government backed residential mortgages. It pays a high dividend yield, currently 8.4%, and makes dividend payments on a monthly basis.

Cabot Marijuana Investor

Monthly Issue April 28: One of the many adages about investing in stocks says, “Never sell a dull market short.” The theory, basically, is that if the market isn’t going up or down, it’s likely to go up, given that that’s the long-term trend of the market and that a “dull” market is eventually likely to be followed by an exciting market. Well, the marijuana sector has been “dull” for only a few weeks, but before that the sector had a broad decline that pulled the marijuana index down 50% in just 10 weeks, so it’s logical that the sector’s next major move will be up. Additionally, the broad market is still acting well, with major indexes hitting record highs frequently, so it makes sense that the marijuana sector should turn around and rejoin the party, eventually taking the industry leaders out to new highs.

Weekly Update April 21: Today Canopy Growth (CGC), announced Southern Glazer’s Wine & Spirits as the distribution partner for its U.S. portfolio of CBD-infused beverages. This partnership announcement follows the recent launch of Quatreau – Canopy’s first line of CBD-infused beverages sold in the U.S market. Southern Glazer’s will distribute Canopy’s CBD beverages, beginning with Quatreau, across seven states, with additional states in the months to come.

Cabot Early Opportunities

Monthly Issue April 21: As investors we need to keep our eyes open and ears to the ground as we seek out opportunities to participate in what that new normal could be. Today’s Issue covers five candidates, all of which have been acting reasonably well. Tyler’s Top Pick AtriCure (ATRC), is a small-cap MedTech company that plays in the atrial fibrillation (AF, or Afib) and left atrial appendage (LAA) management markets, which top 30 million people worldwide and six million in the U.S.

Special Bulletin April 20: It is a stink fest out there in the market today and Fisker (FSR) has looked like a hot pile of garbage for weeks. But today we see another big bank jumping in with a buy rating.

Special Bulletin April 19: The market has hit an air pocket over the last few sessions and SPAC IPOs have been particularly soft for a few weeks now. Today we’re taking partial gains in a few positions and cutting losses short in another. Read bulletin for all recommendations.

Cabot Profit Booster

Weekly Issue April 27: Not to sound like a broken record, but day-to-day sector rotation continues to be the story of the last week of trading, and almost all of 2021. The good news is that this is a fine situation for the Cabot Profit Booster portfolio as we are rotating with the market, buying the best stocks, and keeping the portfolio as diversified as possible. Jacob’s new stock recommendation is Harley-Davidson (HOG).

Cabot Micro-Cap Insider

Weekly Update April 28: The big news this week is taxes. President Biden proposed to raise the capital gains income tax on long-term capital gains from 20% to 39.6% for millionaires. Who knows if this law will actually get passed. I have my doubts. For years, Republican and Democratic politicians have tried unsuccessfully to close the carried interest loophole which allows private equity and hedge fund managers to treat profit windfalls as long-term capital gains not ordinary income. Rich has one portfolio change: BBXIA moves to Sell Half.

Monthly Issue April 14: Rich’s new recommendation Atento SA (ATTO), is a Latin American customer relationship management (CRM) business that is growing, generating positive free cash flow, and is an acquisition candidate. It’s majority owned by sophisticated private equity investors who are restricted from selling the company until May 2022. At that time, Rich expects a sale of the company for more than 100% above Atento’s current price. It is currently trading at 3.6x forward EBITDA. This is truly a distressed valuation that is usually associated with a company that is on the verge of bankruptcy.

Cabot Income Advisor

Monthly Issue April 28: The market is still creeping higher and is near the all-time high. But skepticism is rising. The S&P 500 has risen 28% since the beginning of November and over 80% since the lows of last year. Sure, the likely economic boom ahead, complemented by trillions in stimulus, is a compelling catalyst. But when is that priced in? The market anticipates. It started flying after the vaccine announcement but before the economy took off. At some point it will anticipate beyond the full economic recovery.

Weekly Update April 21: It’s earnings season. So far, it has mainly been just the big banks that have reported. And the results have been largely positive. Earnings come at a time when the market can’t seem to make up its mind. Technology stocks have been strong since selling off last month. But the sector seems to get periodically knocked back before it really gains traction. Cyclical stocks are hot, and then they’re cold. Meanwhile, defensive utilities and healthcare stocks have been stronger.

Cabot Turnaround Letter

Monthly Issue April 28: With the stock market continuing to reach record highs, and with most stocks either participating in the rally or facing structural, fundamental challenges that they won’t likely overcome, finding new ideas can be a challenge. As contrarians, we want to look for stocks in places that others find too unconventional or uncomfortable, as bargains may be found there. One such place is in stocks with low share prices, generally under $10. Bruce’s has one buy recommendation: Dril-Quip (DRQ).

Weekly Update April 23: There were no ratings or price target changes this past week. Adient (ADNT) is above our price target – we are reviewing this name. Also, Jeld-Wen Holdings (JELD) is above our price target. The company reports next Friday. There is upside potential but we are weighing this against rising lumber costs and slowing housing demand. Click here to listen to the podcast.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from April 21, 2021 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.

Stock Recommendations Tracker

The table below lists all of the stocks held in any Cabot portfolio.
Updated or revised recommendations from the past week are in purple text.
Stocks added to a portfolio are highlighted in green text.
Closed stock positions in the past week are highlighted in red text.

StockCabot Small-Cap ConfidentialCabot ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
ABBVHold 2/3
BFTBuy 1/2
BIPBuyBuy 2/3
BMYStrong Buy
CGCSee Advisory
CRLBFSee Advisory
CRNCHold 3/4
CURLFSee Advisory
FNDBuy a Half
FVRRHold 1/2
GRWGSee Advisory
GTBIFSee Advisory
IIPRSee Advisory
JUSHFSee AdvisoryHold 2/3
LLYHold 2/3
NETHold 1/2
PGXHold 1/2
QCOMHold 2/3
SEBuy 1/2Buy
SLQTBuy a HalfBuy
SPCEHold 1/2Take Partial Profits
TCNNFSee AdvisoryBuy
TPBSee Advisory
TRSSFSee Advisory
TSMBuy 1/2
TWLOHold 3/4
XELBuy 2/3