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Cabot Prime Pro Week Ending February 11, 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 three-week market rally to this point, which in his mind has been par for the course -- not amazing, but solid, especially with a good number of growth stocks reacting well to earnings. He sees the next two to three weeks as being key, and reviews some stocks and sectors that are in pole position to get going if the market does.


My Favorite Cannabis Stocks for the Next Uptrend

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Cabot Retirement Club Live Analyst Briefing with Q&A

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue February 10: Two weeks ago, we thought the market had likely hit (or would soon) a workable low–and that was right, with the major indexes and (more important to us) a good number of growth stocks perking up. It’s encouraging, but we can’t say we’re bullish yet: The trends of the market and growth funds are still down, and even things that have popped nicely aren’t set up quite yet.

Bi-weekly Update February 3 :We’re actually growing optimistic that last week’s lows will hold for the near term, which should help some stocks begin the repair process. But beyond that, the evidence remains very negative, so we’re holding plenty of cash and remaining patient. We’re not ruling out a little nibble if something sets up, but tonight, we have no changes, with a cash position near 70%.

Cabot Top Ten Trader

Movers & Shakers February 11: For the first time in a while, it’s actually been a relatively quiet week—the major indexes are hovering around breakeven on the week, though broader indexes are up 1%-ish and the lagging growth areas have gotten off their knees, with many of those funds up 2% to 3% or so. It’s just a start, but that’s good to see.

Weekly Issue February 7: For many weeks the selling pressure was overwhelming, so the first thing we needed to see was the bulls at least put up a fight—and they did two weeks ago, with lots of hectic action after some oversold extremes. Our Top Pick is Stifel Financial (SF), which (interestingly) is part of a strong Bull Market stock sector and recent surged back to its peaks after a solid Q4 report.

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 AlertFebruary 11: Adjust Existing Position: Against CF May 72.5 Calls, Sell the May 90 Call for $1.80 or more

Cabot Options Trader Basic and Pro Trade AlertFebruary 10: Sell a Third of your CF Industries (CF) May 72.5 Calls for $8.80 or more.

Cabot Options Trader Basic and Pro Trade AlertFebruary 9: Sell a Quarter of Existing Position: Sell a Quarter of your FCX March 38 Calls for $5.50 or more.

Cabot Options Trader Earnings Alert February 9: Today after the close Uber (UBER) will report earnings. Headed into the announcement, we are holding half of a position, having sold the first half for a profit of 28%.

Cabot Options Trader Stocks on Watch Alert February 8: As the market mostly chops around, and ahead of the “BIG” inflation data on Thursday morning, I wanted to update you on a couple stocks I have on the top of my watchlist should the market finally get going again. Both are earnings season winners and are attracting bullish option activity today.

Cabot Options Trader Pro Weekly Review February 7: Long positions: CF, CGC, DT, FCX, F, JETS, UBER

Cabot Options Trader Basic Weekly Review February 7: After pushing into correction territory towards the latter part of January, the broad market seems, if only temporarily, to have found a foundation as it rose four of the five days last week. The Dow gained 1.0%, the S&P 500 bounced 1.5% and the tech-heavy Nasdaq pushed higher by 2.4%. Year-to-date the Dow, S&P 500 and Nasdaq are lower by 3.4%, 5.6% and 9.9%, respectively.

Cabot Undervalued Stocks Advisor

Weekly Update February 9: Earnings reports from Bristol-Myers Squibb (BMY) and Merck (MRK) were mildly encouraging. There was very little news on other recommended companies. We note our recent Sell recommendation on ConocoPhillips (COP) that produced a 41% return since our September 2021 Buy recommendation. We also briefly comment on a macro concept, “The Great Unwind,” and how it can be useful to value investors.

Alert February 3: Today we are moving ConocoPhillips (COP) from Hold to Sell. Conoco is a strong, well-managed company with outstanding assets that are producing immense free cash flow – much of which it is returning to investors.

Monthly Issue February 2: We comment on a novel motivation that may be behind Putin’s military build-up, and move shares of oil-producer ConocoPhillips (COP) from Buy to Hold. Also, we comment on earnings from Dow (DOW) and Sensata Technologies (ST) and from Barrick’s (GOLD) production update.

Cabot Stock of the Week

Weekly Issue February 7: Tim’s featured stock TaskUs is a founder-led company that provides customer support and customer experience (CX) services to “new economy” companies. This client base features high-growth, digital-first business models and includes Zoom (ZM), Uber (UBER), Netflix (NFLX), Coinbase (COIN), DoorDash (DASH) and Meta Platform’s (FB) Instagram, among others.

Cabot Explorer

Bi-weekly Update February 10: Explorer stocks were all up this past week with the exception of Ford (F) as inflation numbers out this morning are expected to show consumer-price inflation picked up again in January, to an annual pace of 7.2%. While the dominant force in financial markets these days is the increase in inflation and interest rates, after a bout of weakness tech stocks rebounded yesterday.

Bi-weekly Issue February 3: Carl’s new recommendation QuantumScape (QS), is working on some breakthrough electric vehicle battery technology backed by some heavyweight industrialists as well as Volkswagen (VWAGY). The reason is two-fold: a stock price that is about 75% off its 52-week high and a new, large, high-growth market outside of electric vehicle batteries.

Cabot Small-Cap Confidential

Alert February 11: Avalara (AVLR) reported Q4 results yesterday after the bell that surpassed expectations. Revenue grew by 35% to $195 million (beating by $10.8 million) while adjusted EPS of -$0.06 beat by a penny. For the full year 2021, revenue grew 40% to $699 million while adjusted EPS dipped to -$0.15 from $0.11 a year earlier.

Weekly Update February 10: The S&P 600 SmallCap index continues to firm up and even make some progress moving off support near the 102 level (the IJR ETF is at 107 now). At the same time, growth-oriented stocks have firmed up and even made upside progress over the last week. Most of our positions are up double digits since last Thursday and some, like CS DISCO (LAW) and Revolve (RVLV) are up 25% to 30%.

Alert February 3: After the close yesterday, SiTime (SITM) reported Q4 results that handily beat expectations. Revenue of $75.7 million was up 88% and beat by $4.7 million while adjusted EPS of $1.32 was up 207% and beat by $0.23. Gross margins increased 2.5% to 69.4%. The company ended the quarter with $559 million in cash (partially thanks to $460 million raised through equity offerings in 2021) and no debt.

Monthly Issue February 3: Tyler’s new recommendation Nova LTD (NVMI) is a leading provider of dimensional and materials metrology solutions for process control used in semiconductor manufacturing. The company offers a portfolio of high-precision metrology tools (hardware) and related services and software that help integrated circuit (IC) manufacturers manage yield through the semi fabrication process.

Cabot Dividend Investor

Weekly Update February 2: It’s not a great year so far. In fact, it stinks. January was the worst month for the market since March of 2020. The S&P 500 was down 5.38% and the technology-heavy Nasdaq fell 10% for the month. But stocks are recovering so far in the first week of February as earnings come to the rescue.

Monthly Issue February 9: Tom’s featured stock Discover Financial Services (DFS) is the fourth-largest credit card company in the country and one of the largest in the world. The company issues credit and debit cards, offers consumer banking products and provides loans.

Cabot Early Opportunities

Alert February 11: Cloudflare (NET) reported Q4 results yesterday that surpassed expectations. Revenue was up 54% to $193.6 million while adjusted EPS came in at $0.01. As compared to some other software stocks that have beat expectations, Cloudflare reinvested the surplus cash in growth initiatives, so it didn’t flow to the bottom line.

Monthly Issue January 20: We’re officially in a bear market in growth. Stocks of good companies have consistently failed to hold at expected support zones and trading patterns have completely disconnected from company-specific factors. It’s all about Omicron/Covid, interest rates, inflation and the potential market impacts of a dozen other risks. Tyler’s top pick is Airbnb (ABNB).

Cabot Profit Booster

Weekly Issue February 8: After pushing into correction territory towards the latter part of January, the broad market seems, if only temporarily, to have found a foundation, as it rose four of the five days last week. Today, I’m adding specialty metals company Allegheny Technologies (ATI).

Alert January 21: 2022 has gotten off to a rough start for the bulls as growth stocks have gone through a mini-crash, and of late the selling has moved to the rest of the market. Whether this is the start of a real market correction, or simply a normal pullback, is anyone’s guess. Regardless, because we are selling calls to lower our breakeven on our stock purchases, the Profit Booster portfolio has held up much better than the overall market.

Cabot Micro-Cap Insider

Weekly Update February 2: After a sharp pullback in January, the market has started to snap back this week. Nonetheless, I wouldn’t be surprised in the market tests new lows in February. Usually when the market is down in January, February weakness follows. Still, I continue to feel good about the stocks in the Cabot Micro-Cap Insider portfolio.

Monthly Issue February 9: Rich’s new recommendation Crossroad Systems (CRSS) is a “jockey bet.” In other words, we are betting on the management team and board of directors to create significant value going forward. The investors that control Crossroad Systems are the same investors that control P10 Holdings (PX), a Cabot Micro-Cap Insider recommendation that is up 323% since I originally recommended it. I think a similar situation could play out with Crossroad Systems as the stock is cheap, trading slightly above book value, yet has significant option value that is being heavily discounted by the market.

Cabot Income Advisor

Weekly Update February 9: After a rough start to the year, the market has stabilized and recovered somewhat. Earnings are terrific again. About 80% of S&P 500 companies have reported, with average earnings growth of around 23%. Earnings have saved and revitalized the market throughout the pandemic recovery. And this is another stellar quarter for corporate profits.

Monthly Issue January 26: The S&P 500 is on the cusp of a correction, down 10%. The technology- laden NASDAQ is already well beyond a correction. Energy is the only S&P 500 sector in positive territory YTD. The problem is inflation and the Fed raising rates to combat it. There is a realization that inflation can’t be handled seamlessly.

Cabot Turnaround Letter

Weekly Update February 11: We comment on earnings from Brookfield Re (BAMR), Credit Suisse (CS), Mattel (MAT), Newell
Brands (NWL) and The Western Union Company (WU). Also, we raise our price targets on Wells Fargo (WFC), Marathon Oil (MRO) and Shell plc (SHEL) as these stocks continue to move up. Vodafone (VOD) gets an offer for its Italy operations which may exert pressure to break up the entire company. And, rooting for the turnaround Cincinnati Bengals.

Monthly Issue January 26: We discuss high-quality small caps with beaten-down shares, including Circor (CIR), DistributionNOW (DNOW), Marcus Corp (MCS) and Unifi Corp (UFI). Amidst the IPO rubble, we discuss three worthwhile companies whose shares trade below their offering price: Krispy Kreme (DNUT), Petco (WOOF) and Weber (WEBR). Our featured recommendation this month is Polaris (PII) – shares of this powersports equipment make are significantly undervalued.

Cabot Money Club

Monthly Magazine February 2: You have, no doubt, seen the real-estate commercials, “Sell Your Home as Is,” “We’ll Buy Your Property Fast,” and “Sell Your Home for Cash Now,” all touting easy-peasy methods to sell your home without a Realtor. These ads are the work of iBuyers (instant buyers)—companies that use technology and algorithms, such as an Automated Valuation Model (AVM), instead of a local and experienced salesperson, to price, buy, and sell your home.

Cabot ETF Strategist

Monthly Issue February 8: With the markets in a cyclical rally, rebounding from January lows, it’s an excellent time to review your ETF holdings to make sure you’re invested properly for the current market conditions. In this issue of the Cabot ETF Strategist, you’ll find fully diversified portfolios tailored for aggressive, moderate and conservative risk tolerances.

Ask the Experts

Cabot Top Ten Trader

Question: Hi Mike, regarding CTRA and JNPR and others in general, could you clarify what a minor or modest pullback would be more specifically? (In other words), buy range for JPNR is 34-35 and it is a buy recommendation there. However, at 35, it is in buy range but has not had a modest pullback.

Mike:Good question.I’d just stick to the buy ranges, which line up with the words at the time of publication. If it’s in the buy range, it’s buyable, though at this time we’d be keeping positions on the small side.

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.