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America’s housing market has been in a deep freeze for years, thanks to high borrowing costs and skyrocketing prices. But signs of hope are starting to emerge, and it’s possible a long-anticipated thaw is coming now that mortgage rates have dipped below 6%.

Could 2026 be the year of the U.S. housing turnaround? Possibly. But even if it isn’t, today we add a housing-adjacent stock that should fare well either way – especially since it’s trading at a deep discount. I see 36% upside, possibly within a matter of months. It’s a name you know well – whose products you’ve almost surely used and likely have in your garage right now.

Details inside.

Let’s talk about the power of staying invested.

Sure, when the market turns south – and I’m not even sure last week’s mini-dip qualifies – it makes sense to pare back on your weakest stocks and put a larger portion of your portfolio in cash. But taking your ball and going home – selling out of all of your stocks when times are tough – is not a winning strategy. Here’s why.

Hello from sunny Florida!

I am on vacation with my family this week, taking a much-needed break from the harsh, snowy Vermont winter (and narrowly making it down here ahead of the latest blizzard to dump another foot or two of snow on the Northeast). But with so much going on in the market – tariffs rejected! GDP growth slowing! AI panic! – I wanted to provide an update on everything that’s going on with our stocks.

Inflation is still a problem for many Americans, and it feels unavoidable when it shows up every day at the dining room table. We may not be able to control the price of goods, but this month we’re fighting back against inflation by spending smarter with nine tips that can help keep inflation from busting your budget.

The market is hitting new highs, thanks to Nvidia (NVDA). And while blowout earnings from the artificial intelligence leader were good for the many AI-related plays we have in the Stock of the Week portfolio, we have more than our share of non-AI stocks that are thriving as well (see American Eagle Outfitters (AEO) and Aviva (AVVIY)). Today, however, we add a hiding-in-plain-sight all-star, a company so mainstream and obvious that it may already be in your portfolio … or it’s possible you sold out of it along with many other institutional investors during a brutal stretch in 2022. Now, it’s fully back – and yet the shares still trade well below their 2021 peak. It’s a new recommendation from Tyler Laundon in his Cabot Early Opportunities advisory.

Details inside.

We’ve all seen the data: Nvidia (NVDA) shares have jumped 59% in this still-young (37 trading days) year and 615% since touching $112 in October 2022. The 171x gain in the past decade – turning a $4,500 purchase into $800,000 – makes Nvidia’s price increase among the largest in market history over such a brief period, and certainly the largest for a company that began its 10-year run at a not-small $11.6 billion market value.

Tariffs are back in the news. And the stock market doesn’t like it.

Investors shrug off a lot of things these days – geopolitical turmoil (lots of it), flagging jobs growth, a record-long government shutdown, wars, etc. But tariffs, and tariff threats, are still a four-letter word on Wall Street. So it was no surprise that stocks had their worst day of the young year on Tuesday after President Trump threatened high tariffs on Europe over the Greenland situation, and European leaders responded in kind.

Perhaps the whole kerfuffle will be settled over a catered lunch at the World Economic Forum in Davos this week. Or maybe tensions will escalate further. Either way, this feels like a pivotal week for stocks.

Warner Bros. shareholders have enjoyed double-digit gains in December following buyout offers from Netflix and Paramount. Here’s how to play it.

Landmines abound out there, especially as it relates to the Fed, with two inflation prints coming this week and the Department of Justice launching an investigation into Jerome Powell. And yet, volatility is low, stocks are near all-time highs, and another potentially strong earnings season gets underway this week. So, there’s reason for optimism, particularly given that growth stocks haven’t gone anywhere since late October. Small-cap stocks are starting to gain momentum, and today we add a Canadian one courtesy of Carl Delfeld, who last month recommended our newest portfolio addition to his Cabot Explorer audience.

Details inside.

Value stocks are outperforming growth stocks right now.

That’s not a sentence that’s been uttered (or written) often over the past decade and a half. But for the past three months, it’s definitely true. Growth stocks – as measured by the Investors’ Business Daily 50 ETF (FFTY) – peaked in late October and are still 10% off their pre-Halloween apex. Value stocks – as measured by the Vanguard Value Index ETF (VTV) – have risen more than 4% during that time and have really come on since the calendar flipped to 2026, advancing nearly 3%.

The bull market enters its fourth year, with no signs of slowing. That bodes well for all stocks; growth is likely to continue to outperform, though the gap between growth and value titles appears to be narrowing. To kick off 2026 in style, today we fuse the two by investing in a traditional growth stock (and a household name) that has been so beaten down in recent months that it is now deeply undervalued, at least compared to its historical norm. We also “Retire” a stock from our Growth & Income Portfolio after it eclipsed our price target in just four months.

Details inside.

Just days after Netflix (NFLX) offered to acquire most of Warner Bros. Discovery (WBD), Paramount (PSKY) has made its own hostile bid. Here’s how it affects shareholders.

After a brief tariff scare early last week, stocks resumed their regularly scheduled uptrend. All told, the stock market is doing just fine, with the major indexes touching new record highs. But certain sectors are doing more than fine.

Sector rotation is in full swing, with investors piling into some of last year’s most unloved sectors to kick off 2026. While technology continues to wallow, up less than 1% year to date and having topped right around Halloween three months ago, the following sectors have picked up the slack...

Thank you for subscribing to the Cabot Value Investor. We hope you enjoy reading the November 2023 issue.

We discuss recent earnings from our companies and move shares of Sensata Technologies (ST) from Buy to Hold given the company’s lower overall quality compared to our initial understanding.

We also include some thoughts on the current stock market and how rising interest rates and other factors have led investors to unload shares of most companies and riskier companies in particular.

The market remains in full bull mode, despite the “shocking” (to some) news that the U.S. economy contracted by 2.9% in the first quarter. We’re not easily shocked, and we know that the message of the market is what matters, so we continue to recommend that you invest heavily in leading stocks, particularly those that present attractive entry points. Happily, there are plenty to choose from these days, and this week’s issue offers a fine variety, from energy to medical to retail to restaurants to automobiles.

Our favorite stock in today’s crop is Agnico Eagle Mines (AEM), a gold miner that has solid growth prospects and a great technical set-up. While the big jump in gold stocks two weeks ago got a lot of attention, Agnico’s capable management has made a lot of moves that augur well for the long term.

Stock Name	Price	Buy Range	Loss Limit
Tesla, Inc. (TSLA)	818.87	232-245	215-216
Sanchez Energy (SN)	0.00	35-37.5	32-32.5
Schlumberger (SLB)	0.00	109-113	102-103
SolarCity (SCTY)	0.00	68-70	59-60
KapStone Paper (KS)	0.00	32-33	29-30
JD.com (JD)	39.58	27-28	24-25
InterMune (ITMN)	0.00	42-45	37-38
Buffalo Wild Wings (BWLD)	0.00	160-165	147-148
Allegheny Technologies (ATI)	27.78	42.5-44.5	39-40
Agnico Eagle Mines (AEM)	79.05	35-37	33-34

There are a decent number of warts on this market, including some lackluster action from the broad market, the fact that big-cap indexes have been chopping up and down for the past few weeks, and that small-cap indexes look sick. However, the major trends of the indexes remain up, and most leading stocks, while not tearing up the charts, are still in decent shape. (The many earnings reports last week brought a mixed bag of gaps up and down.) We have our antennae up, especially as more earnings reports push stocks this way and that, but right here the evidence continues to tell us to lean bullish and give our top performers a chance to keep rising.

This week’s list has a bunch of recent earnings winners; if the market is going to continue trending higher, most of these names should do well. Our Top Pick is Steel Dynamics (STLD). We’re usually not big fans of highly-cyclical steel stocks, but STLD just had a big quarter and an even bigger acquisition, with huge earnings forecasts for the next 18 months.

Stock Name	Price	Buy Range	Loss Limit
Under Armour (UA)	0.00	65-70	59-60
Steel Dynamics (STLD)	0.00	20.5-22	18.5-19
Silver Wheaton (SLW)	0.00	25-26	23-24
Royal Caribbean Cruises (RCL)	0.00	59-62	55-56
Patterson-UTI Energy (PTEN)	0.00	36-37	33-34
Polaris Industries (PII)	0.00	143-147	136-137
HCA Healthcare (HCA)	137.60	61-63	56-57
Canadian Pacific Railway (CP)	0.00	190-195	178-180
Cameron (CAM)	0.00	71-73	66-67
Apple (AAPL)	248.94	95-98	89-90

Current Market Outlook


The good news is that the market found some support in the middle of last week and has finally been able to get off its knees during the past couple of days; some potential growth stock leaders, too, have bounced back nicely, including a few in today’s issue. We do think the current bounce will likely go further given the severe selling of the past month and some of the climactic readings seen last week. But it’s going to take more than a couple of up days to change the market’s intermediate-term trend, which remains firmly down. We’re keeping our Market Monitor in bearish territory, and while a little nibbling is fine, the main goal is to remain defensive until a sustained uptrend emerges.

This week’s list is very interesting, as there are a few vibrant growth stocks that have snapped back nicely. Still, our Top Pick is more slow-and-steady —Domino’s Pizza (DPZ) just leapt out of a tight base on huge volume thanks to a bullish earnings report. Dips look buyable.

Stock Name	Price	Buy Range	Loss Limit
Zoës Kitchen (ZOES)	0.00	32-34	29.5-30.5
XPO Logistics (XPO)	0.00	34-37	31-32
Sherwin-Williams (SHW)	526.09	213-217	204-206
Regeneron Pharmaceuticals (REGN)	512.96	350-365	335-340
Pacira Biosiences (PCRX)	54.85	97-101	90-92
Palo Alto Networks (PANW)	236.92	95-98	88-89
Jack in the Box (JACK)	0.00	65-68	62-63
Domino’s Pizza (DPZ)	339.47	82-84.5	78-79
Autohome (ATHM)	98.65	44-47	39-40
Advance Auto Parts (AAP)	0.00	135-138	129-130