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 bullish top-down action of the market, including some longer-term breakouts from small- and mid-cap indexes (which might be good investments in and of themselves). Individual stocks also remain in good shape, though there’s more chop and potholes there as earnings season continues. All in all, short-term dips are possible, but Mike sees far more good than bad out there.
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Cabot Growth Investor
Bi-weekly Issue November 4: In total, then, it’s still a bull market—you don’t want to blindly chase things that are super extended and it’s important to manage stocks through earnings reports, but we continue to aim to put money to work. Tonight, we’re starting a half-sized position in Dexcom (DXCM), which we believe is in the midst of a fresh, sustained advance. Our cash position will be around 18%.
Bi-weekly Update October 28: Remain optimistic. Some indexes and stocks have hit a bit of turbulence of late, and with earnings season still in full swing, the potential for further wobbles is certainly there. But our market timing indicators are still positive and the action of leading stocks remains very solid, so we’re staying mostly bullish. Ideally, we’ll put some money to work in fresh earnings winners going ahead, but tonight we’ll stand pat with our 24% cash position and current crop of stocks. We have no changes tonight.
Cabot Top Ten Trader
Movers & Shakers November 5: The major indexes have had a great week, led this time by the broader indexes—while the S&P 500 and Nasdaq are up solidly (1.5% to 3%), small caps (up north of 4%) and mid-caps have led the way. That keeps the intermediate-term trend pointed solidly up.
Weekly Issue November 1: Last week brought some renewed chop and crosscurrents, with broader indexes finding some sellers and a few stocks hitting potholes before or after earnings. Moreover, we’re seeing indications that complacency has made a quick comeback, and with many good-looking stocks set to report earnings over the next two weeks, some near-term selling wouldn’t surprise us. Mike’s Top Pick is Enphase Energy (ENPH), which appears to be getting going from a deep base 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 Basic & Pro Position Update November 5: Yesterday afternoon after the close Uber (UBER) reported OK earnings. However, this morning, sparked by positive Pfizer (PFE) Covid data, UBER is trading higher by 4.7%, while fellow “open-the-economy” stocks Jets ETF (JETS) and Boston Scientific (BSX) gained 4%.
Cabot Options Trader Basic & Pro Trade Alert November 4: Covered Call: Buy Devon Energy (DVN) Stock, and Sell the December 43 Call (exp. 12/17) for a net price of $40.70 or less.
Cabot Options Trader Basic & Pro Earnings November 4: Uber (UBER) will report earnings today after the market close. Headed into the announcement we are holding half of a position, having sold the first half for a profit of 28%.
Cabot Options Trader Basic & Pro Market Update November 3: Yesterday a hedge fund/institution aggressively sold out-of-the- money December calls in a wide variety of stocks including HD, BSX, ADSK, JNJ, DHI, VLO, SCHW, MA, APD, AMT, SCHW, CRM, VMW, NOW, MSFT, MMM, UNH, and many more. Let’s dive into one of these trades, and then what it may mean for the market.
Cabot Options Trader Basic & Pro Trade Alert November 2: Buy the Healthcare ETF (XLV) March 135 Calls (exp. 3/18/2022) for $5.50 or less.
Cabot Options Trader Basic & Pro Trade Alert November 2: Sell Half of Existing Position: Sell Half of your Marvell (MRVL) February 67.5 Calls for $6.40 or more.
Cabot Options Trader Pro Weekly Review November 1: Long positions: KWEB, CSCO, CGC, FCX, JETS, BSX, MRVL, MS, UBER. Bearish Positions: None
Cabot Options Trader Basic Weekly Review November 1: After a nearly 5% drop in September, investors once again stepped in, bought the dip, and have managed to push the market higher for a fourth straight week. Stocks added to recent gains this past week, driving the Dow and S&P 500 to fresh highs. The S&P 500 rose 1.3%, the Dow climbed 0.4%, and the Nasdaq added 2.7%.
Cabot Undervalued Stocks Advisor
Monthly Issue November 3: Along with our review of General Motors’ (GM) earnings, we briefly outline our concerns about its shares. We comment on earnings from Bristol-Myers (BMY), Merck (MRK), ConocoPhillips (COP) and Molson Coors (TAP).
Weekly Update October 27: Our view on one-trick ponies like Tesla (TSLA) and Facebook (FB). We comment on earnings from Dow (DOW) and Sensata Technologies (ST) and provide updates on our thoughts on ConocoPhillips (COP) and other recommended stocks.
Cabot Stock of the Week
Weekly Issue November 1: Tim’s featured stock Bristol Myers Squibb Company (BMY) is a global biopharmaceutical company with over $46 billion in revenues. In recent years it has divested several major businesses to focus on high-value pharmaceuticals.
Cabot Explorer
Bi-weekly Update November 4: The market was steady this past week as the Federal Reserve completed its two-day meeting and announced plans to end its stimulus program but keep rates unchanged. Some highlights among Explorer stocks: Fisker (FSR) had a nice move this week based on rumors and announcements. First, there is a rumor out there that Apple will acquire Fisker as part of its Project Titan.
Bi-weekly Issue October 28: There are many ways to get investment ideas, but more than one successful investor has told me it all begins for them with reading the humble front page of a national newspaper. Try scanning the headlines and read the stories that make the front page. Carl’s new recommendation Coupa Software (COUP), specializes in software that provides cloud-based business through its spend management platform. Its platform connects organizations with suppliers globally, and provides visibility into and control over how companies spend money, optimize supply chains, and manage liquidity, as well as enables businesses to achieve savings that drive profitability.
Cabot Small-Cap Confidential
Special Bulletin November 5: Avalara (AVLR) reported Q3 results yesterday that surpassed expectations with revenue up 42% to $181.2 million (versus $170.3 million consensus). Adjusted EPS of -$0.03 beat by $0.04. Several recent acquisitions contributed meaningful growth in the quarter ($16.2 million in revenue) which, if taken out, means the organic revenue growth rate was closer to 29%.
Special Bulletin November 4: Revolve (RVLV) announced Q3 revenue of $244.1 million, up 62% and ahead of the $228.6 million (+60%) analysts had expected. By segment, REVOLVE grew by 56% (to $204.2 million) while FORWARD grew 95% (to $39.9 million). Domestic sales were +65% while international was +49%. Big picture, it’s very encouraging to see success across the board and it’s hard not to be impressed with the growing scale of the FORWARD segment.
Monthly Issue November 8: Tyler’s new recommendation Shutterstock (SSTK) has developed an online marketplace for digital commercial imagery, including photos, 3D models, video footage and music. Its platform brings contributors and users of content together so they can supply and/or source high-quality, licensed content. The company has a market cap of $4.38 billion. Contributors simply upload their content to Shutterstock’s web properties and earn royalties based on customer download activity.
Special Bulletin November 3: Sprout Social (SPT) reported Q3 results yesterday that beat expectations. Revenue was up 46% to $49.1 million versus expected growth of 42%. Adjusted EPS was -$0.03 versus $0.01 expected. Customer count grew 20% to 30,705, customers spending over $10K in ARR grew 57% to 4,380, and customers spending over $50K grew 98% to 478.
Weekly Update October 28: This week has been all about earnings, even though we’ve only heard from one company in our portfolio. That company is Repligen (RGEN), which reported this morning (the stock is reacting well). Notes on that report are below. Bigger picture, what has jumped out to me this week is the continued impressive growth from Microsoft (MSFT) and Alphabet (GOOG) in the tech world, and Thermo-Fisher (TMO) in MedTech.
Cabot Dividend Investor
Weekly Update November 3: September was lousy. October was glorious. What can we expect in November and beyond? The market sure rebounded in October, with the S&P 500 posting a 7% gain for the month, more than offsetting the 4.8% loss in September. The market is back to its rightful place of making continuous new all-time highs as earnings are saving the day.
Monthly Issue October 13: Tom’s featured stock Compass Diversified (CODI), is a holding company that invests in niche middle-market businesses, a segment historically reserved for traditional private equity. It owns ten companies, six in branded consumer businesses and four niche industrial companies. The businesses are unrelated and therefore provide diversification. The branded businesses include companies that make and sell outdoor wear, food warming systems, baseball equipment, diamonds, and baby products. The industrial businesses make circuit boards, magnetic technologies, and custom packaging.
Cabot Marijuana Investor
Monthly Issue October 28: The good news: Both new and mature markets are still growing. U.S. sales were $17.2 billion in 2020, up 40% from 2019, and are expected to hit $36 billion by 2025 and $64 billion by 2030 (roughly the size of the current illicit market). Competition is strong, which is healthy. And even Amazon, whose expertise is getting people what they want, is backing lobbying for legal marijuana. The bad news: The administration in Washington continues to ignore voters’ appetite for legalization. But individual representatives in Washington continue to craft measures that would chip away at illegality.
Update October 13: The good news is that the marijuana industry is growing rapidly, with the leading companies continuing with their programs of store openings and acquisitions. The bad news is that the stocks of these leading companies remain in correction mode, as they have been since February.
Cabot Early Opportunities
Special Bulletin November 3: Sprout Social (SPT) reported Q3 results yesterday that beat expectations. Revenue was up 46% to $49.1 million versus expected growth of 42%. Adjusted EPS was -$0.03 versus $0.01 expected. Customer count grew 20% to 30,705, customers spending over $10K in ARR grew 57% to 4,380, and customers spending over $50K grew 98% to 478.
Special Bulletin November 2: ZoomInfo (ZI) reported Q3 results yesterday that surpassed expectations. Revenue was up 60% to $197.6 million (54% organic growth). Growth with enterprise customers continues to shine as ZoomInfo now has over 1,250 customers (74% customer growth) with over $100K in annual contract value (ACV) and total ACV growth of 85% from these customers (ZoomInfo has over 25,000 total customers).
Monthly Issue October 20: There are a lot of things investors could focus on these days, ranging from potential impacts of supply chain disruptions and labor shortages to the big-picture economic effects of inflation and rising interest rates. But really, for the coming weeks it’s going to be all about earnings season. We’re all looking for insights into how individual companies are being impacted by the aforementioned challenges (and more) and what opportunities they’re successfully chasing down. Tyler’s top pick is Dynatrace (DT).
Cabot Profit Booster
Weekly Issue November 2: After a nearly 5% drop in September, investors once again stepped in, bought the dip, and have managed to push the market higher for a fourth straight week. Stocks added to recent gains this past week, driving the Dow and S&P 500 to fresh highs. The S&P 500 rose 1.3%, the Dow climbed 0.4%, and the Nasdaq added 2.7%. And the bullish ways continued Monday as all of the major indexes piled on to recent gains. Jacob’s new stock recommendation is Marvell Technology Group (MRVL).
Cabot Micro-Cap Insider
Weekly Update November 3: Tang Capital’s standstill agreement expires at the end of this week, and traders appear to be nibbling on Aptevo (APVO) anticipating that Tang will continue his effort to buy shares of the company in the open market. Dorchester Minerals (DMLP) dropped this week, but it was because the ex-dividend date passed for the recent distribution.
Monthly Issue October 13: Rich’s new recommendation Leatt (LEAT) Corporation, is a South African company that designs and manufactures protective equipment for motor bike riders. Despite a revenue compound annual growth rate (CAGR) of 24% from 2017 to 2020, and an EPS CAGR of 165%, the stock trades at a forward P/E multiple of just 13.2x. Insiders own 45% of shares outstanding, and I expect strong growth ahead. My price target of 36 implies significant upside ahead.
Cabot Income Advisor
Weekly Update November 3: It was a glorious October. The S&P 500 was up about 7% for the month, more than making up for September’s 4.8% decline. Now what? Earnings are reviving the market. Despite the resurgence of the virus, prolonged supply-chain disruptions, a labor shortage and inflation; company earnings are killing it.
Monthly Issue October 27: The market is at another new all-time high. The S&P 500 is up almost 100% since the bear market low in March of last year. Stocks have fully recovered from the pandemic and then some, or so it may seem. Tom’s featured stock FS KKR Capital Corp. (FSK), is the second largest publicly traded BDC that specialized in high interest secured loans to middle market U.S. companies.
Cabot Turnaround Letter
Weekly Update November 5: This week’s note includes comments on earnings reports from eight recommended companies and non-earnings comments on Royal Dutch Shell’s (RDS/B) potential break-up, General Electric (GE) completing its sale of its aviation finance operations, Walgreens Boots Alliance’s (WBA) evolution compared to that of rival CVS Health (CVS), and our updated take on Macy’s (M) possible e-commerce carve-out.
Monthly Issue October 27: We make our case for four consumer staples stocks that have been discarded and now look like bargains, including Campbell Soup (CPB), Calavo Growers (CVGW), Energizer Holdings (ENR) and Utz Brands (UTZ). We also discuss four decent banks with P/Es below 10x, including Amalgamated Financial (AMAL), Citigroup (C), Hope Bancorp (HOPE) and Horizon Bancorp (HBNC). Our featured BUY is Kaman Corporation (KAMN). Investors see a low-margin aerospace contractor tied to the soft commercial jet market and a fading weapons igniter program, but we see a beaten-down stock of a company with capable new leadership that is working to highlight a valuable precision engineering segment that otherwise is hidden behind several lackluster businesses.
Ask the Experts
Cabot Small-Cap Confidential
Question: I’m a new subscriber and I have a basic question for you. Can I assume that the portfolio that you present in your advisory newsletters is a diversified one with roughly 20 stocks? In other words, can I use the Small-Cap Confidential portfolio as a stand-alone portfolio and basically have all of my equity investments in this portfolio? Or would it be advisable to diversify my equity holdings in other stocks?
Tyler: I can’t advise you specifically, but generally speaking I don’t think most investors should have all their equity investments allocated to small cap stocks. It’s pretty standard advice to have a mix more along the lines of 30/30/30/10 small cap, mid cap, large cap, international (or some other sector), or 20/20/40/20 small/mid/large/sector specific, or something like that. There are a lot of factors, including age, risk tolerance, retirement saving, etc. so certainly no one-size-fits-all approach. But again, I can’t think of a scenario in which somebody should have 100% allocated to small caps.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from July 14, 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.