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Explorer stocks had a good week led by Super Micro (SMCI) up 20% and Cloudflare (NET), up 9%, as PayPal (PYPL) has struggled a bit as it launches a new, higher-margin digital ad business. The S&P 500 is up 14% so far this year but the 10 biggest stocks recently represented almost 37% of the index’s total value, the highest since September 2000, according to FactSet. Use caution and take partial profits if you have some of these in your portfolio.

We have been discussing some great companies and breakthrough technologies, but it is easy to overlook that energy is the foundation of economic and technological development. It is also at the core of how countries secure and project national power.

So today, we add a U.S. renewable energy company that is a leader in an alternative energy source that’s making a comeback.

With the exception of another nice gain by NovoCure (NVCR), this was a quiet week for the Cabot Explorer portfolio as the Nasdaq continues its march, up almost 35% so far in 2020. Our Emerging Markets timer (EEM) stays positive as some of these markets bounce back against the backdrop of very weak economies. Perhaps the worst is India with its latest quarterly GDP falling 24%. This issue’s new recommendation is a high quality stock in a growth sector with a wonderful high margin, low risk business model.

After a multi-week bottoming process, the buyers showed up last week in a big way, producing a rare show of strength that, historically, has always preceded great gains when looking out six to 12 months. That said, the next few weeks are more of a toss-up, as the intermediate-term trends of most indexes and stocks are still iffy and news-driven action (like today’s commodity move) is still the norm. We’re bumping up our Market Monitor a notch and think it’s OK to extend your line a bit, but we still think it’s best to start small, aim for pullbacks and to go slow.

This week I’m in Cebu, Philippines. While in a shopping mall I spent a couple of hours analyzing a fascinating situation whereby Samsung, Apple and Huawei stores were right next to each other.

I’m not technically proficient enough to tell you which company and product offer the best value, but Huawei’s lower end smartphone was only $450 and seemed to offer everything anyone would need. Its high-end leader was just slightly cheaper relative to Apple’s most recent model, with all the bells and whistles. The store was very polished and in no way seemed to be of lesser quality to Apple or Samsung.

While Nvidia (NVDA) has pulled back more than 20% over the past two weeks, our conservative AI play IBM (IBM) has tacked on 40 points over the same period- hitting an all-time high early this week.

Cloudflare (NET) shares were up again this week and are now up 28% in 2025 to reach 140.

Dutch Bros (BROS) shares rose 8.5% this week and have surged 23% so far in 2025.

Tech stocks steadied a bit this week as quarterly earnings started coming in. Sea (SE) was up this week on two analyst upgrades. Super Micro (SMCI) will report crucial quarterly earnings early next week.

The Explorer’s one current European stock recommendation is Danish drugmaker Novo Nordisk (NVO). It has passed French luxury group LVMH Moët Hennessy Louis Vuitton to become Europe’s most valuable company.

After months of losses, Kimberly-Clark threw a lifeline to struggling Tylenol maker Kenvue by offering to buy the company, but should you buy the stock?

Commodity prices, particularly copper, are back on the uptick, and that makes these three global mining stocks potentially very strong buy-low plays.

CEO Special Bulletin: Position Updates

WHAT TO DO NOW: Remain bullish, but continue to keep some of your powder dry. The market remains in a solid uptrend, but more indexes and stocks have been stalling out. To be fair, we are seeing some growth names finally kick into gear, but we still think it’s best to ease off the accelerator a bit as we see how earnings season goes. In the Model Portfolio, we sold Uber (UBER) and bought a half-sized stake in Oracle (ORCL) on a special bulletin Tuesday; tonight we’ll make one small move, adding another 3% position to Rubrik (RBRK), which appears to be emerging from its slumber. We’ll still hold around 30% cash after these moves.

Markets are facing end-of-the-summer doldrums as concerns about job and Covid growth dampen enthusiasm. We move two stocks from buy to hold, while on the positive side, Cloudflare (NET) shares are up 73% this year and Novonix (NVNXF) shares are up 58% in the last 10 days of trading. Today we have a new semiconductor-related idea for you in an area usually overlooked by investors.

There were no earnings this past week, but earnings season is just around the corner. The beleaguered Walgreens Boots Alliance (WBA), without a permanent CEO, kicks off our season with its Thursday, October 12 report, followed the next day by Wells Fargo (WFC) and Citigroup (C).

The market remains in decent shape despite an onslaught of potential landmines, including the new conflict in the Middle East, worsening unrest domestically and the July 9 deadline on the 90-day tariff pause for some 130 countries fast approaching. It’s not raining, but dark clouds are forming, so it’s worth bringing a poncho with you the next time you leave the house (so to speak). Today, we go with what’s working, and that’s energy, as oil prices have gotten an immediate boost from the sudden Israel-Iran war. Fortunately, Cabot Dividend Investor Chief Analyst Tom Hutchinson has one of the best-performing energy-related stocks out there, and one that pays a nice dividend to boot. It’s the newest addition to the Stock of the Week portfolio.

Details inside.

Stocks continue to hold the line, even as the dual tidal waves of America’s involvement in the Iran-Israel conflict and the fast-approaching tariff deadlines threaten to submerge everything. Until that happens, though, we should invest in the market in front of us, not the one we think could materialize. And so today, that means going back to the growth well and adding a medium-sized software offering from Cabot Early Opportunities Chief Analyst Tyler Laundon to the portfolio.

Details inside.