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Turnaround Letter
Out-of-Favor Stocks with Real Value

April 12, 2024

Wells Fargo (WFC) kicked off the Cabot Turnaround Letter earnings season today, showing EPS of $1.26/share, which exceeded estimates by 17 cents. WFC also beat top-line revenue estimates by $710M, coming in at $20.86B. Despite the comfortable beats, WFC shares are essentially flat for the day.

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Wells Fargo (WFC) kicked off the Cabot Turnaround Letter earnings season today, showing EPS of $1.26/share, which exceeded estimates by 17 cents. WFC also beat top-line revenue estimates by $710M, coming in at $20.86B. Despite the comfortable beats, WFC shares are essentially flat for the day.

Friday, April 12, 2024 Subscribers-Only Podcast:

Covering recent news and analysis for our portfolio companies and other topics relevant to value/contrarian investors.

Today’s podcast is about 10 minutes long and covers:

  • Initial note
    • Introduction – a quick look at Wells Fargo earnings and some thoughts on insider transactions.
  • Comments on recommended companies
    • Dril-Quip (DRQ) CEO Jeffrey Bird sold 7,500 shares of the company according to a recent SEC filing. While insider sales often stir up questions about management’s commitment to the company, shares are usually just part of normal compensation. We believe that to be the case here.
    • Adient (ADNT) announced they will release earnings on Friday, May 3.
    • Xerox (XRX) announced the nomination of seven new candidates for election to its Board of Directors. The election will be held at the Annual Shareholder Meeting on May 22.
    • Treehouse Foods (THS) announced they will release earnings Monday, May 6.
    • Western Union (WU) announced they will release earnings Wednesday, April 24.
    • JanusHenderson Group (JHG) announced they will release earnings Thursday, May 2.
    • Advance Auto Parts (AAP) director Brent Windom bought more than $800k worth of company stock recently. Unlike sales – which are often completely uncorrelated to the company itself – purchases do at least tend to convey positive sentiment around valuation. That said, they are not very predictive, which I discuss a bit in today’s podcast.
    • Mohawk Industries (MHK) announced they will release earnings Friday, April 26.
    • Barnes Group (B) subdivision Barnes Aerospace announced the completion of its expanded Maintenance, Repair, and Overhaul (MRO) facility in East Granby, CT.
    • Macy’s (M) ended its proxy battle with Arkhouse Management and Brigade Capital Management after rejecting their takeover bids. The company will, however, add two directors nominated by Arkhouse.
    • Newell Brands (NWL) announced they will release earnings Friday, April 26.
    • Volkswagen (VWAGY) unveiled plans to invest US$2.68B in China to help expand its production/innovation hub in Hefei, Anhui Province.
    • Bayer AG (BAYRY) had the US$1.56B verdict against its Roundup weed killer cut to US$611M by a Missouri judge last week.

Please know that while I don’t yet personally own shares of all Cabot Turnaround Letter recommended stocks – including the stocks mentioned in this note – that will materially change over time.

Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at or to our friendly customer support team at Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.


Market CapRecommendationSymbolRec.
Price at
Current Price *Current
Rating and Price Target
Small capGannett CompanyGCIAug 20179.22 2.34 -Buy (9)
Small capDuluth HoldingsDLTHFeb 20208.68 4.88 -Buy (20)
Small capDril-QuipDRQMay 202128.28 23.20 -Buy (44)
Small capL.B. FosterFSTRJul 202313.60 27.17 -SELL
Small capKopin CorpKOPNAug 20232.03 1.64 -Buy (5)
Small capAmmo, Inc.POWWOct 20231.99 2.66 -Buy (3.50)
Mid capMattelMATMay 201528.43 19.31 -Buy (38)
Mid capAdient plcADNTOct 201839.77 31.15 -Buy (55)
Mid capXerox HoldingsXRXDec 202021.91 17.285.6%Buy (33)
Mid capViatrisVTRSFeb 202117.43 11.804.1%Buy (26)
Mid capTreeHouse FoodsTHSOct 202139.43 37.48 -Buy (60)
Mid capThe Western Union Co.WUDec 202116.40 13.506.9%Buy (25)
Mid capBrookfield ReBNREJan 202261.32 40.350.8%Buy (93)
Mid capPolarisPIIFeb 2022105.78 97.272.7%Buy (160)
Mid capGoodyear Tire & RubberGTMar 202216.01 12.95 -Buy (24.50)
Mid capJanus Henderson GroupJHGJun 202227.17 32.514.7%Buy (67)
Mid capSix Flags EntertainmentSIXDec 202222.60 25.32 -Buy (35)
Mid capKohl’s CorporationKSSMar 202332.43 25.507.0%Buy (50)
Mid capFrontier Group HoldingsULCCApr 20239.49 7.13 -Buy (15)
Mid capAdvance Auto PartsAAPSep 202364.08 77.341.2%Buy (98)
Mid capMohawk IndustriesMHKJan 2024103.11 122.36 -Buy (165)
Mid capVF CorporationVFCMar 202416.24 13.762.4%Buy (25)
Mid capBarnes GroupBApr 202436.55 35.831.7%Buy (55)
Large capGeneral ElectricGEJul 2007304.96 156.300.2%Buy (160)
Large capNokia CorporationNOKMar 20158.02 3.493.3%Buy (12)
Large capMacy’sMJul 201633.61 18.583.5%Buy (25)
Large capNewell BrandsNWLJun 201824.78 7.233.6%Buy (39)
Large capVodafone Group plcVODDec 201821.24 68.5811.6%Buy (32)
Large capBerkshire HathawayBRK.BApr 2020183.18 418.62 -HOLD
Large capWells Fargo & CompanyWFCJun 202027.22 57.402.4%Buy (64)
Large capWestern Digital CorporationWDCOct 202038.47 73.11 -Buy (78)
Large capElanco Animal HealthELANApr 202127.85 15.56 -Buy (44)
Large capWalgreens Boots AllianceWBAAug 202146.53 19.134.8%Buy (70)
Large capVolkswagen AGVWAGYAug 202219.76 16.036.1%Buy (70)
Large capWarner Bros DiscoveryWBDSep 202213.13 8.32 -Buy (20)
Large capCapital One FinancialCOFNov 202296.25 143.521.7%Buy (150)
Large capBayer AGBAYRYFeb 202315.41 7.557.0%Buy (24)
Large capTyson FoodsTSNJun 202352.01 59.053.3%Buy (78)
Large capAgnico Eagle MinesAEMNov 202349.80 62.002.8%Buy (75)
Large capFidelity Natl Info ServicesFISDec 202355.50 0.082.0%Buy (85)
Large capBaxter InternationalBAXFeb 202438.79 42.622.7%Buy (60)

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Matthew Warder is Cabot Wealth Network’s Chief Analyst of Cabot Turnaround Letter