By Michael Cintolo, Chief Analyst, Cabot Wealth Network
For more than half a century, Cabot has searched for the market’s next great stocks.
Since 1970, we’ve watched new technologies emerge, industries transform and new generations of market leaders take their place.
But our mission has remained consistent: find exceptional growth companies with the biggest potential gains.
That same search led us to the five stocks you’re about to discover.
For each one, we’ll show you the story driving the opportunity, the numbers behind the business and why we believe the stock deserves your attention today.
Let’s get started.
Airbnb (ABNB)
Airbnb needs no introduction, as it’s the king of home rentals—two hosts in San Francisco renting air mattresses in 2007 has now scaled to over 5.5 million hosts and 2.5 billion guest arrivals. It’s been a sleepy stock for years (no pun intended), but it changed character after its Q2 report, in part due to the firm’s shift beyond home rentals: The number of experiences (think guided hikes, cooking classes and local tours) on the platform leapt 80% in the quarter along with accelerating demand, while boutique and independent hotels (in more than 20 big-ticket cities including New York, Paris and Singapore) are seeing bookings grow roughly three times faster than the core home-rental business. Encouragingly, management notes that 35% of first-time hotel guests return in the future to book a home, meaning the hotel angle is helping directly and indirectly. As for the overall business, one of the big attractions here is the capital-light model that makes Airbnb a cash cow: Free cash flow in the past year was $4.8 billion (miles ahead of reported net income and totaling something like $7.75 per share; the margin was huge at 37%), funding lots of share buybacks ($1.1 billion of buybacks just in the latest quarter; share count is down 4.6% from a year ago). And then there’s the cost side, with the company saying AI is having a huge impact—customer support cost per booking dropped 16% in Q2, with 45% of incoming customer support inquiries now completely handled by AI! To be fair, Airbnb isn’t suddenly going to grow at triple-digit rates, but business is accelerating some and the market is sniffing out solid growth and buoyant free cash flow ahead: In Q2, revenue galloped ahead 17% and EBITDA was up 21% while booking volume was up 16% and bookings from first-time clients was up 11%, the fastest pace in four years. As for the stock, ABNB had been trapped in a humongous sideways range since late 2021, but shares took off after the August report, reaching their highest level since 2022 on two weeks of big-volume gains. The odds are that a new, big-picture uptrend is underway.
Atlassian (TEAM)
Atlassian focuses on business software that allows teams to work together, such as project planning, management and workflow applications. The company is already well-established in corporate IT departments, with 350,000 clients globally paying a subscription price for Atlassian’s suite of services, more than 600 of which pay more than $1 million annually. But investor perception tanked over the past year on fears that AI would eat into its business and the underlying cloud migration story here would run into a wall. But after the fiscal Q2 report (ending in June), it’s now looking like the long-term growth story has a lot farther to run. One reason: Atlassian’s AI assistant, Rovo, a search, chat and workflow agent, is seeing the fastest growth with usage increasing more than 50% from the prior year in the quarter (now five million monthly active users); the top brass also said firms adopting its AI tools expand their business with Atlassian by twice the rate of others, which basically upended the whole bear thesis that AI will crush the business. Meanwhile, Google Cloud is one enterprise customer, as are about 80% of the Fortune 500 companies, and those firms stepped up in a big way—Atlassian’s remaining performance obligations surged 44% in the quarter, with a near-doubling of $1 million deals. (Customers that spend at least $1 million with the firm lifted 50% from a year ago, while the titans spending north of $5 million saw their revenues to Atlassian boom 70%.) All together, the trends led to a great June quarter, with Atlassian’s top line surging 28% while earnings grew 91% (growth there has actually accelerated in the past couple of quarters), both figures breezing past estimates. To be fair, earnings are expected to fall going forward, but that’s by choice—the company is investing heavily in a sales force expansion and AI engineering, while offering new AI features for new additional fees (initially, anyway). TEAM was a horrid performer over the past year-plus, but it started to bottom out in April and then soared massively after earnings, and followed through nicely in the weeks that followed. Near-term pullbacks are certainly possible, but the trend has turned up.
Halozyme (HALO)
Halozyme is focused on developing drug-delivery technologies, with its Enhanze platform the big star: It breaks down an enzyme under the skin that is gel-like and prevents large liquid flows, allowing for quicker, bulk drug delivery (often minutes instead of hours) in a safe manner, a big plus for patient satisfaction and freeing up time in infusion centers. Enhanze is increasingly expanding its presence through partnerships that use its drug-delivery technologies to develop more convenient subcutaneous formulations of cancer therapies. Halozyme receives royalties from several leading pharma companies that have licensed the Enhanze system, including Roche, Takeda, Pfizer, Janssen (Johnson & Johnson) and Eli Lilly, with Enhanze being used in 10 commercialized drugs across more than 100 markets. A rapid increase in the royalties the company receives from the Enhanze platform is a big part of its growth story this year, with several newer products beginning to contribute meaningfully. This was highlighted in the recent Q2 results (the reason for the stock’s latest strength), which included revenue of $481 million that soared 48% from the year-ago period, earnings of $2.28 a share that topped estimates by 46 cents and adjusted EBITDA of $329 million that jumped 46%. Most importantly, royalty revenue increased 50%, to $308 million, with DARZALEX SC (Jannsen) and VYVGART Hytrulo (Argenx) royalties up 27% and 143%, respectively, while royalties from Tecentriq and others collectively rose 85%. Meanwhile, new formulations of Enhanze are ramping, including Rybrevant SC (Janssen), Ocrevus SC (Roche) and Opdivo Qvantig (Squibb), which Halozyme said can “benefit substantially” as patients switch from IV administration to subcutaneous formulations. As for new indications, VYVGART Hytrulo received approval covering all serotypes of generalized myasthenia gravis (a muscle weakness), while DARZALEX Faspro added indications in newly diagnosed and early second-line multiple myeloma (a blood cancer), further expanding the firm’s royalty opportunities. There have been patent worries surrounding the stock for years, but management remains confident the royalty business will continue to grow as some new products potentially lock in deals for a decade or two to come. Analysts see over $8 of earnings per share this year and over $10 next. Like many of today’s strong performers, HALO made no net progress for a while (May 2025 to June 2026), but began perking up and then broke out in recent weeks—a fresh breakout that should carry further.
Palantir (PLTR)
Palantir built an AIP (Artificial Intelligence Platform) on an early insight that is starting to prove true: Despite huge investment, AI models themselves are becoming more and more of a commodity (the well-known models keep getting better, and there’s a lot of debate about open-source models these days as well), so the real edge lies in wiring those models into an organization’s actual data and workflows so they can act, producing the real savings and productivity gains that AI has promised. That’s what the “ontology” (Palantir’s term) underneath AIP does — it maps a company’s or government agency’s real-world objects, processes and decision points into a structure an AI model can reason over with context, so a recommendation isn’t a generic chatbot answer (or an overly-detailed, research-like answer) but something tied directly to a specific supply chain, weapons system or claims process, for instance. In essence, then, Palantir quacks like the Microsoft of the AI age—whereas Windows made the PC useful to everyone, not just programmers, Palantir is doing the same for institutions that want AI to solve problems and save money. The numbers here are some of the best out there: Second-quarter revenue hit $1.94 billion, up 93% year-over-year, with U.S. commercial revenue — the segment most directly validating the AIP thesis — up a massive 149%. Meanwhile, the bottom line continues to soar as well, with triple-digit gains each of the past two quarters, and the forward-looking metrics (U.S. commercial deal value signed was up 156%; total remaining contract value in that segment up 124%) all point toward continued rapid growth ahead. Wall Street sees growth slowing somewhat (up “only” 49% in 2027), but the firm has been breezing past estimates for many quarters, so even that should prove too low. Even better, the stock isn’t overplayed—it corrected and consolidated for a full year, and then blasted off in early August after its huge Q2 results. We think investor perception has turned up.
SM Energy (SM)
When it comes to firms in cyclical industries, we’re frequently intrigued by companies that take advantage of slower times in the sector to build their business, and SM Energy is a good example. The firm is no longer a mid-cap, single-region energy play, but a top-10 U.S. independent oil-focused (oil is about half of output now, with 70% liquids) producer following January’s transformative all-stock merger with Civitas Resources (consolidating premier acreage across the Permian, Uinta and DJ Basins) that was a fish-swallows-whale kind of move: The merger more than doubled SM’s output, gives it a huge boost in reserves and should lead to massive synergies totaling $375 million annually (which should be fully recognized in 2027). (A big $950 million divestiture after the merger was used to pay down debt; there’s now no debt maturities until mid-2028.) So far, the early returns are fantastic: In Q2 (when oil averaged low $90s per barrel and natural gas was just under $3), the new SM cranked out $467 million of free cash flow, equal to more than 5% of the current market cap), and the firm returned about 30% of that via dividends (2.4% annual yield) and buybacks (share count down 1% sequentially)—and with leverage likely dipping below one times cash flow by year-end, buybacks should step up next year. Of course, prices are lower so far in Q3 so free cash flow should be as well, but the underlying execution is on track, with management upping SM’s full-year production outlook recently while keeping overall CapEx the same. Obviously, if oil prices really tank, all bets are off, but even at $65 oil, management thinks free cash flow can be something near $5 per share, making the new SM look like a cash cow. As for the stock, after a nice run early this year, shares bobbed and weaved for four months, but the Q2 report and an improved energy environment caused SM to lift to new highs near month’s end. Volatility with energy prices is a given, but we think this name and some peers could surprise on the upside.
These 5 Stocks Are Just the Beginning
The stocks you’ve just discovered are among the growth opportunities we believe deserve your attention today.
But Chief Analyst Mike Cintolo sees something much bigger taking shape in the market right now.
And he has already identified a select group of stocks that could be directly in its path.
Click here to learn about what Mike is following now.
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To find out more about stocks mentioned in this report or to get names of additional growth stocks, check out Cabot Growth Investor.
The advisory is your ticket to fast profits in stocks that are under accumulation now. You get 26 bi-monthly issues over a year with a panoramic view of what’s going on in the market and how it affects your investments, along with complete buy, hold, and sell recommendations. Plus, regular updates and up-to-the-minute trading alerts. Cabot Growth Investor is your best source of advice on investing in the market’s hottest stocks.
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About Cabot Wealth Network
This report is published by Cabot Wealth Network which was founded in 1970 by Carlton Lutts, a disciplined investor with an engineering mind who developed a proprietary stock picking system using technical and fundamental analyses.
Since then Cabot Wealth Network, headquartered in Salem, Massachusetts, has grown to become one of the largest and most-trusted independent investment advisory publishers in the country, serving hundreds of thousands of investors across North America and around the world.
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