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Cabot Prime Pro Week Ending February 4, 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 up a bit of short-term optimism, thinking last week’s lows can hold for a bit, allowing some stocks and indexes to start repairing the damage of their recent declines. That’s a bit of sunshine, but he hasn’t changed his overall defensive stance, as the intermediate-term (and even longer-term) trends are pointed down and most stocks aren’t set up. In the meantime, he’s flagging positive earnings reactions, bullish relative strength and sectors that are acting well — and relays a dozen names to keep an eye on.


Cabot Micro-Cap Insider Live Analyst Briefing with Q&A

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My Favorite Cannabis Stocks for the Next Uptrend

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Cabot Retirement Club Live Analyst Briefing with Q&A

FREE MEMBER BRIEFING: February 24, 2022 Sign up now.

Advisory Services

Cabot Growth Investor

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%.

Bi-weekly Issue January 27: The market remains under pressure, with our Cabot Tides and the “Growth Tides” (see more in this issue) negative, and even our longer-term Cabot Trend Lines on the verge of a sell signal. To be fair, we are starting to see some “real” extremes in terms of some sentiment and oversold measures, so we’re hopeful a bounce could get underway soon; we’re not ruling out some nibbling or re-jiggering in the Model Portfolio.

Cabot Top Ten Trader

Movers & Shakers February 4: Not many people will claim this was a great week, including us, but taken in combination with last week’s action, and we’re actually optimistic that Monday was the workable low we’ve been looking for. It started, of course, with some real extremes seen last week, including nearly 34% of Nasdaq issues hitting new lows (January 24) and 86% of Nasdaq stocks closing below their 200-day lines (January 27).

Weekly Issue January 31: As we wrote in last week’s issue, we started to see some extremes out there when it comes to selling pressure, with a few different breadth-related measures nearly reaching levels seen at prior major lows of the past decade. Our Top Pick is Corning (GLW), which isn’t their fastest horse, but it has a solid business and a very good chart, having just enjoyed a nice buying cluster after earnings.

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 Market Update February 3: This update is going to go in a bunch of different directions. First, let’s start with my general thoughts on the market … After several really strong days for the market that were somewhat led by the beaten-down growth stocks, today the S&P 500 is down 1.25%, while the Nasdaq is lower by 2.5%. The weakness in the Nasdaq follows a couple ugly days for market leaders PYPL and FB, both of which fell approximately 24% following earnings.

Cabot Options Trader Earnings Update February 1: Tomorrow morning, before the market open, Dynatrace (DT) will report earnings. Headed into the event our calls are essentially at a breakeven.

Cabot Options Trader Position Update January 31: In this morning’s Weekly position update I noted that we would likely sell calls against our Canopy Growth (CGC) stock holding. For now, and this is subject to change, I might hold off on that plan as a trader bought 5,000 February 7.5 Calls for $0.79 shortly after the open.

Cabot Options Trader Pro Weekly Review January 31: Long positions: CF, CGC, DT, FCX, F, JETS, UBER

Cabot Options Trader Basic Weekly Review January 31: After three straight weeks of losses the bulls finally stepped up on Friday, salvaging what was an ugly start to the week. The Dow gained 1.3%, the S&P 500 bounced 0.8% and the tech-heavy Nasdaq closed the week flat. Year-to-date the Dow, S&P 500 and Nasdaq are lower by 4.4%, 7.0% and 12.0%, respectively.

Cabot Undervalued Stocks Advisor

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.

Weekly Update January 26: We discuss the Fed’s Dilemma and offer a quote from Jim Rogers and provide updates on Barrick Gold’s encouraging production outlook and our other stocks. There were no earnings updates this week.

Cabot Stock of the Week

Weekly Issue January 31: Tim’s featured stock Organon & Co. (OGN), is a United States-based global pharmaceutical company with sales of $6.3 billion. About 80% of its sales are produced outside of the United States. Founded in the Netherlands in 1923, the company was spun off from Merck in June, 2021. Organon is a member of the S&P 500.

Cabot Explore

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.

Bi-weekly Update January 27: Stocks hopefully have settled down after facing a rough market in recent weeks fed by expectations that the Fed soon will embark on raising interest rates. This has led to sharp pullbacks for growth stocks with high valuations and no earnings. Quality and value are beating risk right now.

Cabot Small-Cap Confidential

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.

Alert February 1: Xometry (XMTR) has just announced that preliminary Q4 revenue will be $65.5 – $67.5 million. This is in the range of what we expected when factoring in the $3.5 to $4.5 million of acquired revenue from the Thomas Publishing business.

Weekly Update January 27: The real short version of what’s going on out there is … we’re officially in a bear market in growth. And it’s been particularly tough going in the super-fast-growing small-cap stock arena.

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 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.

Cabot Early Opportunities

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 1: As for market performance, speculative and growth areas continue to struggle while stocks tied to rising rates and cyclicals managed to garner the most attention from buyers. However, the recent short-term rally could see higher-beta areas come back into play. Today, I’m adding Corning (GLW), which reported blowout earnings last week.

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 January 12: Rich’s new recommendation NexPoint Diversified Real Estate Trust (NXDT), is a closed end fund that is transitioning into a real estate investment trust (REIT). It trades at a 40% discount to NAV and is significantly below where it traded pre-pandemic. Once the transition to REIT is complete, it will be eligible for many more investors to own including funds and ETFs. This will likely drive indiscriminate buying pressure.

Cabot Income Advisor

Weekly Update February 2: The first month of 2022 is in the books. And it wasn’t good. It was the worst month since March of 2020. The S&P 500 was down 5.38% in January. The technology-heavy Nasdaq finished the month down 10%. And the numbers were only that good because of the big up day on Monday.

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 4: We comment on earnings from Vodafone (VOD), Nokia (NOK), Shell (SHEL) and Adient (ADNT), a new $100 million share buyback at Gannett (GCI), trapdoor tech stocks and the possibility of a massive economy-wide inventory downcycle. We also discuss our intentional foot-dragging on any ratings changes for Marathon Oil (MRO) and Shell plc (SHEL).

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 January 11: Does your ETF portfolio look the same this year as it did in 2021, or even for the past five or 10 years? With this first issue of the Cabot ETF Strategist, you’ll get the essential portfolio allocations to get the year started right. Whether you’re an aggressive, moderate or conservative investor, theres’s a portfolio for you.

Ask the Experts

Cabot Growth Investor

Question: Thoughts on Nextera energy?

Mike: Thanks for writing. Honestly, it’s totally not my kind of stock so I hesitate to offer an opinion. To me it looks like a big breakdown after a long run, so I wouldn’t grab it, but obviously this isn’t a true growth stock, so my methodology probably isn’t the best thing to apply to a stock like NEE. I would say that it’s trading at 30 times earnings and has a yield of 2%, which seems rather pricey for a single-digit grower, but again, these things are evaluated using other criteria.

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.