Cabot Stock of the Week Issue: October 13, 2025

Stocks hit another pothole this week, most notably on Friday, when President Trump dusted off his China tariff rhetoric on social media, only to walk at least some of his fiery comments back after seeing what it did to the market, which appeared genuinely spooked for the first time in months. We’ll see what happens with the U.S.-China trade war in the coming weeks. Today’s bounce-back is encouraging, although the S&P 500 is still down more than 1% since our last issue.

To steer well clear of the U.S.-China rivalry until the dust settles, today we add something that’s a little outside our normal sandbox: a foreign currency. More specifically, it’s a fund that offers exposure to a well-known European currency, and it’s a fund that has risen more than 12% year to date – with more potential upside ahead. The fund was recently recommended by Carl Delfeld to his Cabot Explorer audience.

Here it is, with Carl’s thoughts.

NEW RECOMMENDATION

CurrencyShares Swiss Franc Trust (FXF)

One of the most glaring concerns to many investors is that the annual interest on the U.S. national debt is rising along with higher debt and interest rates.

It is now higher than our $900 billion-plus defense budget, and the annual interest bill paid by taxpayers to the domestic and international holders of Treasury debt now represents about 14% of the entire U.S. budget. Hopefully Washington will wake up and get spending under control before it impacts markets and sinks the value of the dollar.

But just in case, you should consider putting some portfolio hedge positions in place, such as gold and bitcoin, as well as diversifying into some high-quality international stocks and currencies. Switzerland is a good place to start.

Switzerland’s $937 billion-plus economy has a substantially higher average income than America, with levels of income inequality that are comparable to those in Scandinavia. Furthermore, average family wealth in Switzerland is over $700,000 – about twice the Nordic average. Moreover, Swiss public spending accounts for 35% of GDP, versus 55% in higher-tax Sweden.

It has an open international economy with 40% of its population foreign-born. Outward looking, Switzerland has 40% of its gross domestic product attributed to exports.

While only 137 miles by 216 miles in size, with a population of 7.2 million, Switzerland packs a punch and is a financial and multinational powerhouse. Swiss multinational firms account for 15 of the top 100 European companies by stock market capitalization. Even so, small companies deliver two of every three jobs and only one in six Swiss work for the government, half the Scandinavian average.

Now let’s tick off some reasons I’m recommending the Swiss franc today.

The Swiss franc is backed by ample gold reserves, fiscal discipline, a trade surplus, and very little foreign debt.

Switzerland represents the third-largest financial center in the world after New York and London.

Switzerland enjoys a stable government, vibrant democracy and a reputation as an asset haven in times of stress.

The Swiss have had a functioning democracy for 500 years with a legislature that meets for only two weeks, four times a year.

You can clearly see how Switzerland and the Swiss franc fit our hedge needs nicely.

It is also home to world-beating pharmaceutical, engineering and food companies

For exposure to the Swiss franc, I recommend the CurrencyShares Swiss Franc Trust (FXF). BUY

Current Recommendations

Changes Since Last Week:

D.R. Horton (DHI) Moves from Buy to Sell

Helen of Troy Ltd. (HELE) Moves from Hold to Sell

Main Street Capital Corp. (MAIN) Moves from Buy to Sell

We have three sells this week – one at a substantial profit, and two at a loss – as all three stocks have fallen out of favor, quite quickly in Helen of Troy’s case, despite easily outpacing earnings estimates last week. With the addition of FXF, that cuts out portfolio down to a more manageable 22 positions. Ideally, I’d like to get it down to 20, but I’m not going to force things. Besides, the vast majority of the stocks in our portfolio are thriving – namely AST SpaceMobile (ASTS), which has not only more than doubled in the last month but has easily been the best-performing stock in our portfolio since we added it 15 months ago. Coeur Mining (CDE), Oracle (ORCL) and Netflix (NFLX) also made big upward moves this week, swimming against the market’s slight downward tide.

Here’s what’s happening with all our stocks.

Updates

Agnico Eagle Mines (AEM), originally recommended by Carl Delfeld in his Cabot Explorer advisory, pulled back about 3% despite gold prices surging above $4,000 an ounce for the first time ever. Having more than doubled this year, AEM shares were perhaps due for a pullback, especially given the downturn in the market last week. We still have a better than 65% gain on this gold mining stock, and the runup in gold prices clearly isn’t over, so this dip could be a buying opportunity for anyone who doesn’t yet own AEM. BUY

Airbus (EADSF), originally recommended by Carl Delfeld in his Cabot Explorer advisory, pulled back 1% this week. There was no news, so the pullback is likely in sympathy with the market. Plus, the stock had just topped new record highs above 238, so a 1% pullback in a down market is pretty mild. The stock is up more than 43% year to date thanks to strong revenue growth prospects through 2030, a deep order backlog for its aircraft and a long-delayed replacement cycle forthcoming for airlines that will require new jets. Given rival Boeing’s (BA) struggles of late, I think the run is far from over for this French aircraft maker. BUY

Alibaba (BABA), originally recommended by Carl Delfeld in his Cabot Explorer advisory, had a rough week, falling more than 10%, with the majority of the losses coming after President Trump escalated tariff threats against China last Friday. Alibaba, of course, is China’s biggest e-commerce company, but it does most of its business in China, so U.S. tariffs likely won’t have much of an impact on Alibaba. The reasons we added BABA to the Stock of the Week portfolio – that it’s becoming a global AI leader – still hold true. So I view this sharp pullback – in a stock that we still have a 14% gain on in just over a month – as a buying opportunity. BUY

American Electric Power Company (AEP), originally recommended by Tom Hutchinson in the Safe Income Tier of his Cabot Dividend Investor advisory, gained another 2.5% this week on no news. In his latest update, Tom wrote, “Utilities are hot. It’s the second-best performing market sector over the last month, just a fraction behind technology. The AI data center-induced electricity trade has heated up again, and utilities are benefiting. AEP had been wallowing but is up over 10% in the last couple of weeks. There is a strong chance that the skyrocketing growth in electricity demand will transform performance into something much better than it has been. It is well positioned for growth ahead as well as a possible down market.” BUY

ArgenX (ARGX), originally recommended by Mike Cintolo in his Cabot Top Ten Trader advisory, was up 1% this week on no news. The stock is now up 13% in the last two weeks, rebounding from a rare downturn as both Truist Securities and Morgan Stanley have raised their price targets on the stock by a considerable margin. ArgenX is a promising biotech and the maker of Vyvgart, which has blockbuster potential. It’s just moving from clinical trials to market, and the drug has various applications for autoimmune diseases. Vyvgart got U.S. approval in June to treat chronic inflammatory demyelinating polyneuropathy (CIDP), and it’s also now on the shelves in Europe and Japan. Given the drug’s potential, earnings estimates have been accelerating, up from a $21 per share estimate in 2026 to $25 after the second-quarter earnings report. There’s a lot to like with this large-cap biotech, and Wall Street recognizes it. BUY

Armstrong World Industries (AWI), originally recommended by Mike Cintolo in his Cabot Top Ten Trader newsletter, gave back the 1.5% it had gained from the previous week. There was no news. The company will report earnings on October 28. We have a modest gain on this manufacturer of wall and ceiling building materials thus far. BUY

AST SpaceMobile (ASTS), originally recommended by Tyler Laundon in his Cabot Early Opportunities advisory, is off to the moon, adding another 17% this week after running up 44% the previous week. The stock is now up more than 120% in the last month! Why? Because the up-and-coming space-based internet provider just inked a huge deal with Verizon to connect its BlueBird satellites with smartphones across the U.S. as early as next year. The deal comes on the heels of several successful tests of AST’s satellites’ ability to deliver voice, video and data connectivity. The Verizon deal further legitimizes AST in its mission to become the first space-based straight-to-smartphone internet provider, as it had already signed a pact with AT&T. The company launched its first five BlueBird satellites into low-Earth orbit last September; it plans to launch another 45-60 satellites next year. We added this stock to the portfolio in July 2024 based on its immense, potentially revolutionary promise. And now it’s delivering on that promise, quickly becoming the best-performing stock in our portfolio for the last 15 months, with shares up well over 600%. We sold half our stake a couple months back in an effort to book profits and are letting the rest ride. Right now, it’s quite a ride! HOLD HALF

Banco Santander (SAN), originally recommended by Carl Delfeld in his Cabot Explorer advisory, was off about 1.5% this week after it and other big banks revealed plans to launch a new jointly owned, reserve-backed stablecoin that will be pegged to G7 currencies. It’s an interesting development, and one that puts Santander in bed with some of the top U.S. banks (Bank of America, Citigroup, Goldman Sachs, etc.), but because its impact on the business is unknown, it didn’t move the needle in terms of share price yet. What likely will move the needle is the October 29 earnings report. With SAN shares having already doubled year to date, the bar may be high for it to continue its torrid ascent. But the stock hasn’t disappointed, and Santander’s inclusion in the stablecoin consortium says a lot about the Spanish bank’s newfound prominence in the global economy. BUY

BYD Co. Ltd. (BYDDY), originally recommended by Carl Delfeld in his Cabot Explorer advisory, pulled back about 2.5%, mostly in sympathy with other Chinese stocks last Friday after President Trump escalated U.S.-China tariff rhetoric. But shares of the Chinese EV maker are bouncing back today, probably because Wall Street realized the U.S. tariffs will have virtually no impact on BYD’s business since it does not currently sell its cars in the U.S. The stock has gone through a rough patch since a rare underwhelming earnings report in late July. Perhaps it can redeem itself in a couple weeks, when it reports Q3 earnings on October 29. In the meantime, we still have a solid gain on it, and the stock is holding above support in the low 13s. BUY

Cinemark Holdings (CNK), originally recommended by yours truly in the Buy Low Opportunities portfolio of my Cabot Value Investor advisory, was off another 5% this week and is dangerously close to its August lows in the high 24s. If it gets there, we’ll likely cut bait. For now, though, the stock has pulled back for no good reason after running up to 29 in late September; meanwhile, JPMorgan just nudged up its price target on the movie theater chain from 37 to 38 – roughly 50% higher than the current price. With movie theaters on track for their best year since Covid and Cinemark on pace for its best year of ticket sales ever, I still think this stock is woefully undervalued, and Wall Street will soon realize, perhaps starting with the October 30 earnings report, if it comes in ahead of estimates. BUY

Coeur Mining (CDE), originally recommended by Carl Delfeld in his Cabot Explorer advisory, remains on fire, adding another 8.5% this week as gold and silver continue to soar to new heights. There was no major company-specific news, though silver prices topped $50 an ounce for the first time ever. This mining stock was already a double for us, which is why we downgraded to Hold a couple weeks ago. Now it’s up well over 150% in the four and a half months since we added it to the Stock of the Week portfolio – with no slowdown in sight. HOLD

DoorDash Inc. (DASH), originally recommended by Mike Cintolo in Cabot Top Ten Trader, finally pulled back after a monster run, sagging about 4% since our last issue. The pullback comes despite the company inking a new food delivery deal with Serve Robotics. DoorDash will use Serve Robotics’ army of delivery robots to help with online food delivery in select cities (Los Angeles, Miami, Dallas, Chicago, Atlanta). The impact the Serve Robotics deal will have on DoorDash’s business is unknown, but the stock has been on fire of late, with shares touching new highs prior to this week and up 60% year to date, even after this week’s pullback. We booked profits on half our shares once the stock reached a double a few weeks ago and, like with ASTS, are letting the rest ride. HOLD HALF

Doximity (DOCS), originally recommended by Tyler Laundon in his Cabot Early Opportunities advisory, continued to retreat this week, down more than 6% as Goldman Sachs downgraded the stock to Sell and JPMorgan downgraded to Underweight (Keybanc, on the other hand, raised its price target from 75 to 80). Valuation concerns were the main reasons for the downgrades, as DOCS’ enterprise value is 36x forward EBITDA. Still, we have a solid double-digit gain on this software stock that services healthcare professionals. Let’s see if it bounces back. Keeping at Buy for now. BUY

D.R. Horton, Inc. (DHI), originally recommended by Mike Cintolo in his Cabot Top Ten Trader newsletter, has totally collapsed in October, and it’s time to sell. We added the stock in late August in anticipation of a bump to homebuilders as the Fed started to slash interest rates; that clearly isn’t happening yet, as homebuilder stocks as a whole are down 10% in the last month. So we may have been too early on this one. Let’s sell before our modest loss (less than 10%) turns into something more. SELL

FedEx Corp. (FDX), originally recommended by yours truly in my Cabot Value Investor newsletter, pulled back more than 7% in its first week in our portfolio as escalating trade tensions prompted some investor concern about the global economy – which FedEx is basically a proxy for. Not exactly the rousing start we were looking for, but it makes this undervalued play on a still-strong global economy even more undervalued, trading at 13x forward earnings estimates and a mere 0.66x sales. If you didn’t do so last week, this looks like a prime buying opportunity for one of the world’s great companies. BUY

Fidelity National Financial (FNF), originally recommended by Tom Hutchinson in the Dividend Growth Tier of his Cabot Dividend Investor advisory, was off nearly 5% this week on the aforementioned tariff-related economic fears. There was no company-specific news. Here’s what Tom had to say about it: “The title insurance company stock has levelled off since the recent peak in August. Fidelity should benefit from Fed rate cuts and hopefully a reduction in mortgage rates. Business is affected by the housing market as more home purchases result in more business. And the biggest impediment right now is high mortgage rates. FNF is around the highest price since the spring. But it will likely be range-bound until there is some significant improvement in the mortgage rate/housing market situation. Perhaps the situation will improve in the months ahead as the Fed continues to cut rates.” BUY

Helen of Troy Ltd. (HELE), originally recommended by Clif Droke in his Cabot Turnaround Letter, fell hard (-25% one trading session) on earnings last Thursday, as we noted in a trading alert in which we downgraded the stock to Hold, despite beating both top- and bottom-line estimates. It hasn’t bounced back yet, and I don’t plan on waiting around for it to do so after that kind of implosion. Let’s sell and cut our losses at right around 20%. SELL

Life360, Inc. (LIF), originally recommended by Mike Cintolo in Cabot Growth Investor, retreated by about 7.5% since we last wrote, as investors came for stocks with plenty of meat on the bone. The stock is up roughly 150% year to date, even after this past week’s slide. There’s been no company-specific news, and no red flags that prompted the mini-sell-off, so I’d buy the dip here if you don’t already own shares. BUY

Main Street Capital Corp. (MAIN), originally recommended by Tom Hutchinson in the High Yield Tier of his Cabot Dividend Investor advisor, was off 11% this week and has fallen below its 200-day moving average for the first time since April. This high-yield business development company has been a solid performer for us since we added it to the portfolio in March 2024, but momentum has clearly turned south on it, so it’s no longer worth keeping around. MAIN did its job, delivering double-digit share price growth and a very high monthly yield, but let’s clear another spot in the portfolio for something with a bit more upside. SELL

Netflix, Inc. (NFLX), originally recommended by Tyler Laundon in Cabot Early Opportunities, quickly got back the 5% it lost the previous week, going against the grain of a down market. Seaport Global snatched up the stock on weakness, upgrading the stock to Buy with a 1,385 price target. Citigroup also raised its price target. Earnings are due out next Tuesday, October 21, which could help the stock get out of its recent funk. Regardless of the results, this streaming giant is still one of the market’s great growth stocks and belongs in any long-term portfolio. BUY

Oracle Corp. (ORCL), originally recommended by Tom Hutchinson in the Dividend Growth Tier of his Cabot Dividend Investor advisory, continues to rebound, adding more than 6% this week. In his latest update, Tom wrote last Tuesday, “This newfound AI powerhouse has pulled back 20% from the September high. It is likely consolidating after the remarkable one-day 36% surge after the earnings report. Future revenue projections have exploded. Revenue for its AI-infused Cloud infrastructure service grew 77% over last year’s quarter to $18 billion. But the company said it anticipated that revenue to grow to $144 billion by 2030. The 700% revenue growth by the end of the decade was not expected. Oracle also reported a massive backlog of potential customers for its services that grew to $455 billion from $130 billion two quarters ago. Soaring revenue is a very good reason for a stock price to surge.” HOLD

Sea Limited (SE), originally recommended by Carl Delfeld in his Cabot Explorer advisory, was off about 3% this week, consolidating after nearing 52-week highs a week ago. There was no company-specific news, so the pullback was likely in sympathy with the broad market’s minor downturn. This Singapore-based conglomerate remains one of the better holdings in our portfolio, a play on Southeast Asian growth – and one that trades at roughly half its 2021 highs despite more than tripling since we added it to the portfolio in early 2024. BUY

Stoxx Europe Total Market Aerospace & Defense (EUAD), originally recommended by Carl Delfeld in his Cabot Explorer advisory, was off more than 3% this week after recently touching new 52-week highs. We still have a gain north of 30% on this niche European play. BUY

Tesla (TSLA), originally recommended by Mike Cintolo in Cabot Top Ten Trader, declined nearly 6% this week after the rollout of its new, cheaper Model Ys and Model 3s after a cryptic Elon Musk tweet got people’s hopes up. The price cuts amount to a mere $5,000 discount from current prices for its two most popular models. That’s not much and is the latest example of Musk’s knack for over-promising and under-delivering. On a brighter note, Tesla has begun to ramp up production at its gigafactory in Shanghai – its largest assembly plant by volume. That’s giving investors hope for Q4 and beyond. In the more immediate term, next week’s (October 22) third-quarter earnings report will likely go a long way in determining whether TSLA can maintain its recent momentum (+41% since the start of August). Let’s keep holding and see what happens. HOLD

If you have any questions, don’t hesitate to email me at chris@cabotwealth.com.

Here, too, is the latest episode of Cabot Street Check, the weekly podcast I host with my colleague Brad Simmerman.

The next Cabot Stock of the Week issue will be published on October 20, 2025.

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