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

Cabot Prime Pro Week Ending July 8, 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 runs through the performance of the major market indices in the first half of the year and discusses projections for market moving data - including GDP and interest rates - in the coming months. He highlights the ongoing and historical small cap discount then dives into four stocks from different industries that have compelling setups, even in this bear market.


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 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.

Bi-weekly Update June 9: The major indexes are down modestly today after the European Central Bank laid out a plan to tighten policy. As of 215 pm, the Dow was down 157 points and the Nasdaq was off 129 points.

Cabot Top Ten Trader

Weekly Issue July 5: This week’s list is a hodgepodge of ideas, from big, steady-Eddies to smaller up-and-comers that want to get moving if the market can stabilize. Our Top Pick is an off-the-bottom name whose RP line has turned strong and whose growth is rapid and should accelerate.

Movers & Shakers July 1: It’s been a down week thus far for the market with most major indexes down in the 2% to 4% range coming into Friday. Really, nothing has changed from what we wrote last week—the intermediate-term trends are still down for the indexes, for growth funds and for the vast majority of stocks and sectors.

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 Basic Weekly Update June 27: It’s often hard for investors to rationalize, but bad economic news is sometimes “just what the doctor ordered” for the market; and that was the case last week as housing numbers again disappointed, consumer sentiment hit a record low, and perhaps for the first time in months, an inflation-related data point may have cooled off. What this means is it appears the economy is slowing down, which could allow the Federal Reserve to slow down the speed at which it raises interest rates.

Cabot Options Trader Pro Weekly Update June 27: Long positions: AR, M, ONON, OXY, QQQ, XLF

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

Monthly Issue July 6: Investors are facing two 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.

Weekly Update June 29: Stock buyers are on strike, and we see no urgency to buy – why not wait a few days to see if the shares get cheaper? Shares of MolsonCoors (TAP) are rising as investors focus on value, while we keep our Hold rating on Merck (MRK) and The Coca-Cola Company (KO) as the approach all-time highs.

Cabot Stock of the Week

Weekly Issue July 5: We remain in a confirmed bear market, so caution is still appropriate. But there’s always something interesting to consider buying, and this week’s recommendation is a young stock with a good story, which involves helping the oil and gas industries use water more efficiently.

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

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.

Weekly Update June 30: There are a lot of negatives out there these days. The AAII Sentiment Survey shows optimism is in the tank while pessimism is through the roof.

Cabot Dividend Investor

Weekly Update July 6: The market has moved off the lows of last month. But stocks really aren’t going anywhere. The problem is recession. An increasing number of economists are calling for a recession in the next year as the Fed aggressively raises rates and pulls back stimulus in an effort to tame this high and persistent inflation. Stocks are already at least partially pricing in a recession that may not even happen.

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

Weekly Issue July 6: The first half of 2022 came to a close last week, and the numbers weren’t pretty; the S&P 500 fell 20%, the Dow was lower by 15% and the Nasdaq declined by 30%. How the second half of the year will play out is anyone’s guess. However, until stocks show any real signs of sustained momentum, I will continue to keep the portfolio diversified, and will lean defensive with our options selling strategy

Alert June 17: Despite many ups and downs, and a trade that went south fast (ZIM), the CPB portfolio held up fairly well during the most recent market rout. Not all trades are winners, but big picture, given the carnage, I’m fairly happy with June expirations trades. Let’s dive in

Cabot Micro-Cap Insider

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!

Monthly Issue June 8: Today, I’m recommending a company that has grown revenue at a 30% CAGR and EBITDA an 80% CAGR over the past 10 years. Despite this impressive growth, the company trades at just 5.3x EBITDA.

Cabot Income Advisor

Weekly Update July 6: The first half results are in. The S&P 500 has had the worst first half since 1970. Not good. All year long the market has grappled with the strong possibility that the Fed will have to induce a recession in order to tame the high and persistent inflation. There had been hope that a recession might be avoided. But recent evidence is indicating the recession scenario.

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 1: This week’s Friday Update includes a summary of the recent Cabot Turnaround Letter and comments on earnings from Walgreens Boots Alliance (WBA). There were no ratings changes. We also summarize the podcast and include The Catalyst Report.

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

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.

Stock of the Month June 9: Are you tired of turning on your television first thing in the morning and getting heartburn over the market’s gyrations? Yeah, me, too. So, I’m swearing it off. I’m only going to peek at it a couple of times a day, since it doesn’t seem to be finishing the day as it starts, and I just don’t need the angst.

Cabot ETF Strategist

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.

Monthly Issue June 14: The S&P 500 is now in bear territory, which should not be particularly surprising to anyone. The economy is slowing, inflation is high, war is still raging in Ukraine and China’s economy is not in good shape.

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.