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Cabot Prime Pro Week Ending September 23, 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 talks about the market’s move in the context of the Fed’s latest interest rate hike. He lays out the Fed’s expected roadmap for the rest of the year and discusses some of what might change their thinking. With investors hyper-focused on interest rates and the odds of recession rising Tyler suggests it’s not time to be a hero. But he’s intrigued by some stocks that, like the broad market, are trading at or near support zones and moving average lines. Stocks discussed include MSFT, GOOG, CVS, ACN, NFLX, SNOW, PINS, SPT, ELF, AXNX, XPOF, AVO, INST, CYTK, XENE, SIBN.


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Advisory Services

Cabot Growth Investor

Bi-weekly Issue September 22: There’s been a lot of bad news in the past couple of weeks, but nothing has changed with the market–it’s still trending down, and the broad market remains on the outs, and today, we started to see the first signs that even the many resilient stocks are coming under the gun. Big picture, we’re continuing to advise a cautious stance with much more cash than stocks and patience as we wait for the bulls to re-take control.

Bi-weekly Update September 15: Remain cautious but continue to keep your eyes open. This week’s inflation-induced plunge is obviously a negative, but nothing has really changed with our overall view—the market’s trends are mostly down, and the broad market is unhealthy, so we’re holding lots of cash, but there remain many stocks/sectors that are holding their own, too. In the Model Portfolio, we’re again standing pat with around 65% in cash and four stocks. Details below.

Alert August 30: The market’s rally continues to take on water, and while it’s not a wipeout, many of our intermediate-term indicators are back on the fence. Happily, we’re still seeing good action from many emerging and potential leading stocks, including a few we own, so we think the market remains in sort of an in-between phase, but we are taking some action today—in an unusual about-face, we’re going to sell our entire position in ProShares Ultra S&P 500 Fund (SSO) and hold the cash for now, while looking to redeploy into resilient names should the market stabilize. Our cash position will now be around 67%.

Cabot Top Ten Trader

Movers & Shakers September 23: Late September is usually the weakest part of the year for the stock market, and when you throw in a still-aggressive Fed, you have the result you see this week, with the major indexes effectively giving up the ghost, falling another 4% to 5% on the week (as of early this morning), which obviously keeps the intermediate-term (and longer-term) trends pointed down.

Weekly Issue September 19: This week’s list has another batch of resilient stocks, and our Top Pick has been bottoming out for months, and a decisive push higher should be buyable.

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 Alert Basic and Pro September 22: Sell/Adjust Two Positions: Sell your AR November 45 Calls for $0.55 or more and Half of your GOOGL February 120 Calls for $2.50 or more.

Cabot Options Trader Pro Weekly Update September 19: Long positions: AR, XBI, GOOG, M, OXY, SBUX, XLF. Bearish Positions: SPY

Cabot Options Trader Basic Weekly Update September 19: Sparked by a “hotter”-than-expected inflation report on Tuesday, the market had its worst week since June. The numbers were not pretty as the S&P 500 fell 5.15%, the Dow lost 4.13%, and the Nasdaq declined by another 5.5%.

Cabot Options Trader Alert Basic and Pro September 19: Covered Call: Buy Cameco (CCJ) Stock and Sell the October 28 Call (exp. 10/21) for a net price of $26.15 or less.

Cabot Options Trader Position Update September 14: Position Update – SBUX and PYPL, and STILL Watching CCJ

Cabot Undervalued Stocks Advisor

Weekly Update September 21: Suggesting that shareholders with limited appetite for further share price decay should sell Big Lots (BIG) shares. We are keeping our formal Hold recommendation, however, for more risk-tolerant investors. Gates Industrial Corporation (GTES) speaks at a conference about their mixed outlook. Rate hikes are starting to get serious.

Monthly Issue September 7: Our commentary includes some perspective on forecasting from Warren Buffett and baseball legend Yogi Berra. The earnings report from Big Lots (BIG) last week was awful but better than dour expectations, and we are keeping our Hold rating.

Cabot Stock of the Week

Weekly Issue September 19: The market continues to retrace its steps back toward mid-summer lows, but not all stocks are suffering. Renewable energy names, including several in the Stock of the Week portfolio, are holding up quite well thanks in large part to lingering good vibes from the passage of the Inflation Reduction Act. So we’re not fighting the tape – today, we’re adding another clean energy stock to the portfolio, recommended by our Greentech expert, Brendan Coffey.

Cabot Explorer

Bi-weekly Update September 22: FedEx (FDX) reports earnings later today and all will be watching as its shares tumbled last week after it issued a sales warning. The Federal Reserve issued its fifth interest rate hike of 2022, and it certainly won’t be the last one, warned dove-turned-hawk Fed Chairman Jerome Powell. This brisk run-up in rates, which should have been earlier and faster, is hitting growth stocks hard since those are mostly high revenue growth companies that are not yet profitable. The market is punishing this group to levels that tempt longer-term investors.

Bi-weekly Issue September 15: Explorer stocks held up pretty well during this turbulent week as almost all were steady or up, with Chile’s SQM up five points. Stocks stabilized yesterday after a sharp pullback on Tuesday. While prices of gasoline are down, prices of most of other things like food, rent, and medical care are still rising. This week we dive into semiconductor stocks with a return to Taiwan for a new recommendation.

Cabot Small-Cap Confidential

Weekly Update September 22: Well, the market got exactly what it expected yesterday when the Fed hiked by 75bps (the odds were over 80% that’s what they’d do). Fed Chair Jerome Powell’s messaging was consistent with what he said back in August in Jackson Hole.

Monthly Issue September 1: The market has been iffy since Fed Chair Jerome Powell’s “prepare for pain” speech at Jackson Hole last Friday. With interest rates up and (most) stocks down since I’m going with a high-quality name this month.

Cabot Dividend Investor

Weekly Update September 14: In this issue, I highlight a company in one of the most defensive and recession-resistant industries on the market that currently pays a massive 8% yield. The stock is already cheap and likely near the trough of its own bear market with far more upside than downside over time to complement the high dividend.

Monthly Issue August 10: We are likely in a recession. Meanwhile, inflation continues to rage on. That means stocks will have to navigate an environment of both recession and inflation, at least for the rest of the year.

Cabot Early Opportunities

Alert September 23: With the market continuing to have indigestion following the Fed’s 75bps rate hike and higher-for-longer messaging (regarding interest rates), we’re going to trim our position in Toast (TOST) today to reduce the risk of things getting away from us. This sale follows sales of other names last week and early this week, several of which were to lock in partial gains.

Monthly Issue September 21: This month’s issue features a couple of old friends that are shaping up again, plucks one healthy stock off the Watch List and digs into two fresh names that seem to have the wind at their backs.

Alert September 16: With the market looking iffy, the Fed on tap next week and a new Issue slated for Wednesday, I’m going to reduce our exposure a little today by selling Samsara (IOT).

Cabot Profit Booster

Weekly Issue September 20: Before we dive into this week’s idea, let’s clean up a couple of positions that expired last week. Because of the general market weakness, today we are going to sell our stock positions in Qualcomm (QCOM), Oak Street Health (OSH), and Global Foundries (GFS). Once these sales are made, we will no longer own a stock or option position in these stocks.

Alert September 16: August and September have brought plenty of ups and downs for the stock market, and not surprisingly the Profit Booster also had its ups and downs. One of our trades didn’t work, two are good, and two will expire for full profits. Let’s dive in …

Cabot Micro-Cap Insider

Monthly Issue September 14: This month, I pulled the plug on Dorchester Minerals (DMLP). I still love the business model and hope to be able to buy it at another time, but it didn’t seem like an obvious opportunity (like it did in 2020).

Weekly Update September 21: Given the volatility of September, I want to revisit my “bear market” analysis. Typically, bear markets last about 14 months and average a peak to trough drop of 35.7%.

Monthly Issue August 10: Is the Bear Market Over? The first half of the year was painful, with the S&P 500 falling ~20%. July was a lot more fun, as the S&P 500 rallied 9%.

Cabot Income Advisor

Weekly Update September 21: The market has turned decidedly negative after last week’s worse-than-expected inflation report. This week, all eyes are on the Fed.

Monthly Issue August 24: The recent rally caused much consternation on Wall Street. The main question has been this: Is it the end of the bear market or a bear market rally? After the pandemic low, the market took off and never looked back. But that was a very unusual situation. In most bear markets, rallies like we just saw are common. In fact, there were six or seven double-digit rallies during the financial crisis bear market of 2008-09 before the indexes bottomed. The fact that the recent rally seems to be petering out well below the high is raising concern that it was indeed a bear market rally.

Cabot Turnaround Letter

Weekly Update September 23: Updates on Xerox (XRX), Volkswagen (VWAGY), our retail stocks, and Walgreens Boots Alliance (WBA). Interest rates are increasing so quickly that it would be a surprise if nothing breaks. And, are the impressive fundamental results of nearly every company over the past decade irrelevant?

Monthly Issue August 31: One of our more productive methods for finding attractive turnaround stocks is to see what other like-minded investors are holding. We culled the list of hundreds of positions held by our evolving list of 50 or so preferred managers, as reported in the quarterly 13F filings, and discuss three of the most promising.

Cabot Money Club

Stock of the Month September 15: The market has continued its volatility since mid-August, rising above 34,000 on the DJIA, then contracting, just to bolt upward again at the end of last week. Economic uncertainty and fears of a recession, although recently economists have been decreasing their likelihood for a 2022 recession, effectively pushing that into 2023.

Monthly Magazine September: remember when most people didn’t give too much thought to health insurance. And if they did, it was in a positive light. For example, my first memory of health insurance was when my sister Pat had her tonsils removed when she was 15. Right after that, my parents bought her a stereo! Of course, I asked why she got a stereo and my brother and I didn’t get anything—it wasn’t even her birthday!

Ask the Experts

Cabot Top Ten Trader

Question: Is e.l.f. Beauty, Inc. (ELF) a stock that you would consider for your growth portfolio?

Mike: Thanks for asking. So, it’s not really, partially because it’s not liquid enough ($25M per day), and also because the projections for growth (which admittedly can be low) are in the single digits going ahead. If I owned it I’d hold on and trail a stop, but it’s not a name I’m likely to dive into.

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.