Please ensure Javascript is enabled for purposes of website accessibility
Cabot Prime Pro Logo
Cabot Prime Pro

Cabot Prime Pro Week Ending July 15, 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, Tyler Laundon scratches the surface of the June inflation data and discusses how the market has interpreted it and where investors see the Fed taking interest rates at the upcoming FOMC meeting in late-July. Tyler then gets into a number of stocks from different industries that look good, including conservative names in the healthcare and retail industries as well as a few higher growth software and energy names.


The #1 Way to Profit From Earnings Season

FREE MEMBER BRIEFING: July 21, 2022 Sign up now.

Cabot Prime Insider Live Analyst Briefing with Q&A: 3rd Quarter 2022

FREE WEBINAR: July 13, 2022 Sign up now.

Advisory Services

Cabot Growth Investor

Bi-weekly Update July 14: Despite the tedious action and truckload of bad news, we are seeing some things pop up that are often seen near lows, such as growth stocks starting to find their footing and breadth doing the same. We’ve even seen some minor positive divergences from our Two-Second Indicator. Those are reasons to keep your head out of the sand and to keep your watch list up to date, especially with earnings season potentially providing a catalyst in the weeks ahead. Details inside.

Bi-weekly Issue June 30: The first half of the year is in the books, and it was a doozy, but we’re glad we’ve been able to sidestep a good chunk of the historic damage. Now the focus is on what’s next, and it’s important to respect the evidence today (we’re remaining highly defensive) but also stay flexible; we have seen some relative strength in some growth areas and we’re open to whatever comes.

Cabot Top Ten Trader

Movers & Shakers July 15: The market is off this week, with most major indexes down 2% to 3% but still holding above their mid-June lows (or mid-May lows, if you dig into some key growth funds). All in all, the weight of the evidence remains the same—there are many under-the-surface encouraging signs, but the primary measures are still pointing down.

Weekly Issue July 11: This week’s list is again heavy on biotech and Chinese names, though we’re also seeing some strength in a few new (but smaller and sometimes less liquid) growth names. Our Top Pick is a unique medical-related outfit whose stock is changing character for the better.

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 Weekly Update July 11: Long positions: AR, M, ONON, OXY, QQQ, XLF

Cabot Options Trader Basic Weekly Update July 11: Option activity on Friday was brutally slow, and this morning that trend has continued. It is possible, though not guaranteed, that the market could be quiet the next couple of days as we wait for the “BIG” Consumer Price Index number on Wednesday and the start of earnings season Thursday and Friday.

Cabot Options Basic & Pro Trade Alert: June 23: Adjust Existing Position: Against your ONON Stock Position, Sell the August 22.5 Call (exp. 8/19) for $0.55 or more.

Cabot Options Basic & Pro Trade Alert: June 22: Roll Existing Position/No New Capital: Sell your QQQ December 315 Calls and Buy the QQQ December 285 Calls for New Capital.

Cabot Options Basic Trade Alert: June 21: The bear market has shown no signs of slowing down as the S&P 500 posted its 10th week of losses out of the last 11, and had its worst week since 2020. The numbers weren’t pretty as the S&P 500, Dow and Nasdaq all fell between 4.5-6%.

Cabot Undervalued Stocks Advisor

Weekly Update July 13: A recession in the macro sense may not affect our Recommended companies in the usual manner – as the next recession could be very different from prior ones. We await earnings reports from our companies to better understand their specific outlooks.

Monthly Issue July 6: Investors are facing two consensus forecasts that wouldn’t seem to be possible at the same time: pending recession and stable/rising earnings estimates. We look at how our cyclical stocks have been beaten down even as their earnings estimates remain largely steady.

Cabot Stock of the Week

Weekly Issue July 11: We remain in a confirmed bear market, so caution is still appropriate. But the bear may end soon, and when it does, we’ll get back to more aggressive investing. This week’s recommendation is a healthy company that pays a very large dividend and has a solid future serving one of our country’s strongest energy sectors.

Cabot Explorer

Bi-weekly Issue July 7: No question this is a challenging market but Explorer stocks held their ground. Cloudflare (NET) had a good week up five points, and Ford (F) remains my favorite pick on risk/reward basis. This week we move to a surprising trend that will benefit America, the climate, and your portfolio.

Bi-weekly Update June 30: The S&P 500 is down about 20% so far this year, putting it on pace for the worst first half in five decades. The return of inflation, a weaker Chinese economy and the Ukraine conflict have all hit growth and weighed on stocks.

Cabot Small-Cap Confidential

Weekly Update July 14: Things were looking up until we received this week’s inflation report courtesy of the June CPI data. The higher-than-expected reading (headline: CPI +9.1% versus +8.8% expected) has investors worried that a potential soft landing (no/mild recession) could become a hard landing (deeper recession), that inflation could become entrenched, that interest rates will need to go even higher or that some combination of the above will continue to pressure consumers, corporate growth and profits and the equity markets.

Monthly Issue July 7: There are hundreds of thousands of people around the world dealing with end-stage organ failure. The underlying causes are demographic trends contributing to chronic disease.

Cabot Dividend Investor

Weekly Update July 13: It’s a bear market. And there is a good chance that stocks make new lows in the weeks and months ahead. Bear markets create fantastic opportunities for longer-term investors. History shows that bear markets create ideal entry points ahead of the next bull market. Let’s not just weather the storm. Let’s take full advantage of the very possible further downside from here in the market.

Monthly Issue June 8: It’s a raging bear market in technology. But technology has been by far the best performing sector for well over a decade for good reasons.

Cabot Early Opportunities

Monthly Issue June 15: In the June issue of Cabot Early Opportunities we add a conservative stock from our Watch List that’s acted well over the last month and also take a partial position in an emerging player in the energy space. We also refresh the Watch List with a pure-play beverage stock, a biotech stock with a big date in November and another emerging energy name.

Alert June 13: The market is taking it on the chin today (again) as interest rates soar (+6% to 3.35% and a new 2022 high) and inflation/recession fears tick up. I had ZoomInfo (ZI) on high alert last week given its proximity to support near 33.8. Today that support level has cracked. Given the move we’ll step aside from ZI now. SELL

Alert June 10: Today’s inflation data (CPI) wasn’t expected to be great but was even a little worse than anticipated as consumer prices rose 8.6%. That’s up from 8.5% in March and 8.3% in April. One can slice and dice the data a lot of ways but if you want to flag the main issues, they are probably energy and food prices.

Cabot Profit Booster

Alert July 15: Today is the expiration of five of our July covered call trades. And despite the market having some ups, and even more downs, the Profit Booster portfolio had a pretty good month. Let’s dive in …

Weekly Issue July 12: This week got off to a weaker start Monday ahead of important inflation data Wednesday and Thursday, which could set the tone for the market for the weeks to come. Buckle up!

Cabot Micro-Cap Insider

Monthly Issue July 13: Today, I’m recommending a U.K. natural gas company that is trading at a ridiculously cheap valuation and is run by capable operators who generated a 40x return on their last natural gas company.

Weekly Update July 6: Not surprisingly with the holiday weekend, last week was a quiet week. And I bet this week will be quiet too. But we did get some good news! NexPoint’s (NXDT) long-awaited transition to REIT is complete!

Cabot Income Advisor

Weekly Update July 13: Although it’s already a bear market, there is a good chance that stocks fall to new lows before the market recovers. The broader S&P 500 hit a low in mid-June on recession fears resulting from persistent high inflation and the Fed’s aggressive actions to tame it. The market has since bounced off the lows, but the issues that drove the market to those lows haven’t really improved.

Monthly Issue June 22: There is overwhelming historical evidence that buying good stocks in bear markets is a highly successful long-term strategy. After all, it’s better to buy stocks cheap. And the market always trends higher over time. The truth is that buying stocks in a bear market is the most successful investment strategy ever devised.

Cabot Turnaround Letter

Weekly Update July 15: Wells Fargo & Company (WFC) reported an encouraging quarter and the shares remain significantly undervalued. Molson Coors (TAP) will return to Super Bowl advertising after a decades-long drought.

Alert July 14: We are moving shares of Credit Suisse (CS) from Buy to Sell.

Monthly Issue June 29: The monthly issue was published this week, with updates on our outlook for the stock and high yield bond markets. Our feature recommendation is ESAB Corporation (ESAB). We comment on the sloppy earnings from Walgreens Boots Alliance (WBA), provide updates on General Electric (GE), Toshiba (TOSYY), Wells Fargo (WFC), Credit Suisse (CS), Xerox (XRX) and TreeHouse Foods (THS).

Cabot Money Club

Stock of the Month July 14: Interest rates are still rising, as the Federal Reserve boosted short-term rates by 75 basis points last month, to try to stem the growth of inflation. There are some signs that it may be working. The 30-year mortgage rate actually saw a couple of decreases early last week, but nudged a bit higher on Friday, to a 5.94% average national rate. And gas prices have declined nationwide to $4.66 per gallon, from $4.68 this time last week. I know that’s not much, but, hey, we’ll take what we can get!

Monthly Magazine June 24: Remember when COVID fees like disinfection charges, personal protection equipment fees, and other miscellaneous charges were added on to restaurant tabs? One of the steepest charges was the “temporary COVID-19 Recovery Charge” of up to 10% of total bills in New York City, approved by the New York City Council. During the pandemic, these fees were life-saving tactics for many businesses—restaurants in particular—that saw their sales drastically erode.

Cabot ETF Strategist

Monthly Issue July 12: Since last month’s issue, we’ve seen continued volatility in the U.S. equity markets. Trading volume was among the slowest this year; according to Dow Jones Market Data Group, the typical daily volume in the New York Stock Exchange is close to 5 billion. However, this year, it has been around 4 billion.

Weekly Update July 5: A rough second quarter came to an end last week. I would call this a “Nickels and Dimes” market; you make a nickel when the market goes up, and before you know it, you have lost dimes since the market goes down so fast. But that doesn’t mean you have to give up on your opportunity to profit.

Ask the Experts

Cabot Micro-Cap Insider

Question:Rich, I am a dedicated subscriber to your service and I have a question for you re: NexPoint Diversified Real Estate (NXDT): If no one objects by June 27th, what happens next? How does NXDT convert to a REIT and how long does it take for this to be official? I own the stock and would be grateful for your insight.

Rich: My understanding is as follows:

  • If the SEC hasn’t received a request for a hearing by June 27, 2022, it will issue an order granting the request to de-register, and the transition to REIT will be complete.
  • We are at the mercy of the SEC. I don’t know how quickly the order will be granted. It could be tomorrow or it could be within a month.
  • But my guess is that it happens within the next couple of weeks.
  • After the transition to REIT is official, my best guess is management of the company will start to schedule regular conference calls to share thoughts on strategy and financials.
  • Eventually, I think REIT index funds will start to come in and buy the stock.

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.