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The market remains in good shape, with the major indexes hitting slightly higher highs and most stocks acting well. Granted, many growth stocks have been consolidating their strong mid-May to early-June advances, but we’re actually encouraged by that—despite strong run-ups back to (or somewhat above) their springtime highs, the sellers haven’t been able to make any headway. Sure, that could always change, but right now there’s no question that selling pressures are light and the buyers remain in control. Hence, it’s best to remain bullish and pick up shares of new leaders either on powerful breakouts or on dips toward support.

This week’s list has more solid growth ideas than we’ve seen in many weeks. Our favorite idea is GasLog (GLOG), which has gotten a boost from international events, but whose short- and long-term growth story is compelling. Last week, the stock blasted off on its heaviest volume ever.

Stock Name	Price	Buy Range	Loss Limit
TripAdvisor (TRIP)	55.14	99-104	92-93
SunPower (SPWR)	12.26	38-39	34-35
Royal Gold, Inc. (RGLD)	129.66	70-75	65-66
Palo Alto Networks (PANW)	236.92	77-81	70-71
Lithia Motors Inc. (LAD)	146.30	90-93	78-80
GasLog (GLOG)	21.39	28-31	26-26.5
Electronic Arts (EA)	0.00	35-37	31-32
Celgene (CELG)	0.00	160-166	148-150
Arris Group (ARRS)	0.00	31.5-33.5	30-30.5
Apple (AAPL)	248.94	89-91	83-84

The market continues to chop around, with forays into new-high ground inviting plenty of sellers and sharp dips quickly attracting bargain-hunting buyers. We are seeing more set-ups out there, which is a good sign—if the market does kick into gear, there should be some solid leadership. However, until then, this is about as neutral and choppy an environment as we can remember. That doesn’t mean you shouldn’t take any action (this isn’t 2008!), but it’s best to wait for the market to show some bullish action before getting heavily invested. Patience and cash are your allies today.

This week’s list is the first in a while that has a growth tilt to it; there are still some cheap, stable-type stocks, but also some real potential leaders of the next advance. Our favorite is Arris Group (ARRS), which has excellent growth prospects, a huge backlog and a nice-looking launching pad.

Stock Name	Price	Buy Range	Loss Limit
WhiteWave Foods (WWAV)	0.00	29.5-31	26.5-27
Vipshop Holdings (VIPS)	14.25	150-160	138-140
Trinity Industries (TRN)	0.00	78-82	73-74
Rice Energy (RICE)	0.00	29.5-31	27.5-28
Pacira Biosiences (PCRX)	54.85	72.5-75.5	67-68
InterMune (ITMN)	0.00	36-38	33-34
Gilead Sciences (GILD)	75.10	79-83	75.5-76.5
CBRE Group (CBG)	0.00	28-29	26-26.5
Arris Group (ARRS)	0.00	29-31	26.5-27.5
Apple (AAPL)	248.94	580-600	530-540

Current Market Outlook


The broad market continues to be challenging, with last week’s low having the potential to kick off a renewed market uptrend and at the same time holding the potential to establish a floor that—if it collapses—could bring a fresh round of pain. In short, the path ahead is foggy and continued caution is advised. But don’t put your head in the sand! Our OptiMo system continues to dig up top-performing stocks with the potential to bring you substantial profits, if you play your cards right—and one of the most promising characteristics of these stocks is that they tend to be under-owned, meaning far more institutional money could arrive to boost them higher over time.

Today’s roster includes some strong breakouts and a handful of set-ups, and our Top Pick is AMN Healthcare (AMN), which has a steadily growing business in the field of healthcare staffing.

Stock Name	Price	Buy Range	Loss Limit
AMN Healthcare Services Inc. (AMN)	0.00	62-67	57.5-60
Chipotle Mexican Grill (CMG)	773.32	405-420	375-385
Dexcom (DXCM)	421.36	71-74	64-67
Integra LifeSciences (IART)	0.00	57-62	52.5-54
Michael Kors Holdings Limited (KORS)	73.22	67-70	66-64
Novocure (NVCR)	0.00	25-27	23-24
Oil States International (OIS)	0.00	35-37	32-33
Phillips 66 (PSX)	0.00	107-111	99-102
SVB Financial Group (SIVB)	0.00	285-295	265-270
Transocean Ltd. (RIG)	0.00	11.7-12.5	10.2-10.6

Current Market Outlook


The market is coming off another very solid week, with the major indexes tagging higher highs on solid volume and the early returns from earnings season generally positive. It is fair to say the advance is becoming more selective, with some factors (bad earnings, rising interest rates, falling U.S. dollar) causing certain areas to stall out. Overall, we remain bullish, especially in the longer-term, as this recent unusual strength has historically portended good things down the road. In the near-term, though, you should be taking things on a stock-by-stock basis, ditching stocks that break their intermediate-term uptrends and looking for buying opportunities either on shakeouts (in established leaders) or earnings blastoffs.

This week’s list has everything from turnarounds to speculations to recent earnings winners—there’s a lot to like here. Our Top Pick is AbbVie (ABBV), which has been a steady liquid leader in the biotech space and just popped on earnings.

Stock Name	Price	Buy Range	Loss Limit
AbbVie Inc. (ABBV)	93.53	117-123	106-109
G-III Apparel (GIII)	45.25	37-39	33.5-35
Helmerich & Payne (HP)	63.68	70-74	63-65
Ligand Pharmaceuticals (LGND)	267.14	161-167	147-151
Neurocrine Biosciences (NBIX)	123.40	86-90	77-79
Shopify (SHOP)	585.00	122-128	108-112
Spectrum Pharmaceuticals (SPPI)	19.31	21.5-23	19-20
Sprouts Farmers Market (SFM)	19.00	26-28	24-25
Varian Medical (VAR)	118.33	122-126	113-115
Weibo (WB)	98.16	128-134	115-118

Current Market Outlook


The market’s story has remained the same since the new year began—the major indexes and most leading stocks are in firm uptrends, with many longer-term indicators and studies pointing to higher prices in the months ahead. That said, most stocks are extended to the upside (and, now, earnings season is getting underway), so be sure to keep your feet on the ground and look for good entry points. Right now, we’re mostly looking for pullback entries; if the market does relax, the odds are good that there will be opportunities in stocks that have recently gotten going. All in all, we remain bullish and heavily invested.

This week’s list again contains a wide mix of stocks (big, small, growth, commodity, turnarounds, etc.), which isn’t surprising given the market’s broad advance. Our Top Pick is ASML Holding (ASML), which was one of the first chip stocks to re-emerge following a great earnings report.

Stock Name	Price	Buy Range	Loss Limit
ASML Holding (ASML)	350.01	197-203	184-187
Canada Goose Holdings (GOOS)	46.21	30.5-32.5	27.5-28.5
Continental Resources (CLR)	66.19	53-56	49-50.5
Corcept Therapeutics (CORT)	16.06	22.5-24	20-210
Global Blood Therapeutics (GBT)	0.00	51-55	44-46
Kohl’s (KSS)	70.62	60.5-64.5	55.5-57.5
Lowe’s Companies (LOW)	98.15	99-103	91.5-94
ON Semiconductor (ON)	24.07	23.5-25	21.5-22.5
Teck Resources Limited (TECK)	26.07	27.5-29.5	24.5-26.
Wynn Resorts (WYNN)	121.08	184-192	168-172

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the July 2023 issue.

While much of our emphasis is on mid-cap and large-cap turnarounds, there are often attractive turnarounds in the small-cap segment of the market. Companies in this group, with market values generally below $1 billion, can offer worthwhile investment opportunities. This month, we are focusing our research exclusively on small-cap turnarounds and discuss eight names with interesting potential.

Our feature recommendation this month is L. B. Foster Company (FSTR), a small-cap manufacturing and distribution company focused on the railroad, precast concrete structures and customized steel fabrication, coatings and measurement industries. After years of difficulties, a diligent and impressive turnaround effort is underway and starting to show progress, even as investors overly discount its prospects.

Current Market Outlook


Last week was a great one for the major indexes and leading stocks, with many surging higher on big volume to notch new highs, a good sign that big investors are putting money to work in growth stocks. That said, it’s not all peaches and cream out there—hundreds of stocks are actually hitting new 52-week lows (mostly energy and interest rate-sensitive stocks, but others, too), and to this point, only the Nasdaq has reached new high ground; the intermediate-term trend for most indexes remains neutral. Reflecting the terrific action of Top Ten stocks, we’ll nudge our Market Monitor up a notch; if you see a good set-up, go ahead and take it. But we’re still advising holding some cash on the sideline and being selective on the buy side.

This week’s list has a hodgepodge of stocks, many of which haven’t been featured here for a long time. For our Top Pick, we’ll stick with the big-cap growth stock theme that’s working well—Celgene (CELG) just popped out of a four-month base on big volume last week following a major acquisition. It’s buyable around here.

Stock Name	Price	Buy Range	Loss Limit
Intrexon (XON)	0.00	55-57	49-50
Take-Two Interactive (TTWO)	123.32	29.5-31	27.5-28
Progressive Corp. (PGR)	0.00	30-31	27-28
Blackhawk Network (HAWK)	0.00	41-43	38-38.5
Alphabet, Inc. (GOOGL)	0.00	675-700	630-635
Fitbit Inc. (FIT)	0.00	42-46	37-38
Domino’s Pizza (DPZ)	339.47	128-134	117-118
Celgene (CELG)	0.00	130-135	119-121
Barnes & Noble (BKS)	0.00	27.5-29	24-25
Alaska Air Group (ALK)	0.00	72-74	66-67
ACADIA Pharmaceuticals (ACAD)	47.84	47-50	42-43

Current Market Outlook


Last week brought another small improvement in the market, both for the major indexes (the S&P 500 and Nasdaq notched their fifth straight up week and are holding above some key longer-term moving averages) and for some leading stocks—more growth stocks with top-notch fundamentals have reacted well to earnings, offering some much-needed leadership for this rally. Of course, the flip side is also true, as a bunch of stocks have been crushed on earnings, and the broad market’s action is just decent. Overall, we’re a bit more constructive than we have been, so we’ll bump the Market Monitor up a notch, but it remains vital to be selective—buy what’s working, keep losses small and avoid or sell anything that breaks down.


This week’s list has an encouraging batch of growth stocks with good stories and numbers (not as many defensive-type stocks this week). Our Top Pick is LinkedIn (LNKD), a dynamic big-cap growth stock that’s come back to life after its quarterly report blew away expectations.

Stock Name	Price	Buy Range	Loss Limit
Ultimate Software (ULTI)	0.00	200-205	185-186
Lending Tree (TREE)	411.51	108-116	95-97
Royal Caribbean Cruises (RCL)	0.00	96-99	87-88
Proofpoint (PFPT)	113.79	67-70	60-61
The Priceline Group Inc. (PCLN)	0.00	1380-1440	1300-1310
LinkedIn Corporation (LNKD)	0.00	234-242	214-216
IntercontinentalExchange, Inc. (ICE)	0.00	245-255	230-235
Expedia Group (EXPE)	0.00	130-133	119-120
Ctrip.com International Ltd. (CTRP)	34.94	91-95	83-85
Boyd Gaming Corporation (BYD)	0.00	19-20	17-17.5

Current Market Outlook


Last Friday saw a big, broad selloff in the market, not unlike what we’ve seen a few times so far this year. But, interestingly, while those other selloffs lasted a few days, this one might not—the market snapped back vigorously today. All of this is short-term stuff, of course; the overall trend is still generally sideways and few stocks are running away on the upside, so we’re not suggesting it’s time to become fully invested. But we’re seeing evidence that selling pressures are fading, which, if earnings season goes well, could launch a sustained advance.

This week’s list has a nice mix of charts; some are super-strong, some are tight after prior advances. Our Top Pick is MobilEye (MBLY), a company with as big a growth story as you’ll find and a chart that’s showing strength after a long decline. Stick with a small position and expect volatility.

Stock Name	Price	Buy Range	Loss Limit
WABCO Holdings (WBC)	0.00	124-126.5	116-117
Qunar (QUNR)	0.00	43-44.5	39-40
Universal Display (OLED)	187.54	45.5-47.5	41-42
Newfield Exploration (NFX)	0.00	36-37.5	33.5-34
Netflix, Inc. (NFLX)	423.92	540-560	490-500
Mobileye N.V. (MBLY)	0.00	43-46	38-39
First Solar (FSLR)	83.74	60-63.5	54-55
Esperion Therapeutics (ESPR)	0.00	98-100	89-90
Depomed (DEPO)	0.00	25-27	22-22.5
Builders FirstSource (BLDR)	44.12	12.5-13.5	11-11.5

Current Market Outlook


The market was due for a pullback after three straight good weeks, and that’s what we’re seeing now as investors ponder 50-50 polls on Britain’s upcoming E.U. vote (a yes vote is generally considered bearish), the Fed’s meeting this week and Sunday’s horrible terrorist attack. The bottom line is that many indexes are approaching their 50-day lines, though few leading stocks have broken down. As always, you should play it by the book: By our measures, the market’s trends are still sideways-to-up, so we’re sticking with our overall bullish stance; dips following strong advances still look buyable. That said, you should also honor your stops and loss limits, jettisoning any stocks that break support. Further market weakness would have us turning cautious, but today we’ll keep our Market Monitor where it’s been.

Encouragingly, we had no problem finding some great-looking stocks. Our Top Pick is Dave & Buster’s (PLAY), which has a newer retail concept that’s working well, and the firm is on a solid expansion pace.

Stock Name	Price	Buy Range	Loss Limit
Dave & Buster’s (PLAY)	57.01	44.5-46.5	41-42
Penumbra Inc. (PEN)	173.25	57-59	53-54
Match (MTCH)	0.00	13.5-14.5	12-12.5
LLL (LLL)	0.00	142-146	132-134
Halliburton (HAL)	0.00	43-44.5	39.5-40
Cornerstone OnDemand (CSOD)	51.01	39.5-41.5	36.5-37
CDK (CDK)	0.00	54-56	51-52
Burlington Stores (BURL)	193.95	61-63	56-57
AMN Healthcare (AHS)	0.00	38-40	35-36
Agnico Eagle Mines (AEM)	79.05	49-51	45-46

Current Market Outlook


There’s no question the rally of the past four weeks has done the market a lot of good—the intermediate-term trend remains up, the broad market has returned to health and many stocks are setting up nicely. However, we’re sticking with a relatively neutral stance until we see the final pieces fall into place—many stocks lifting to new highs while the longer-term trend turns up. We’re optimistic that can happen soon (though possibly after a little digestion phase), but we want to actually see it occur before advising you to become heavily invested. For now, then, we’ll leave the Market Monitor where it is and will be watching the action of potential leaders closely for signs the buyers are stepping up in a big way.

This week’s list is another batch of high-potential stocks from a variety of industries. Our Top Pick is Blue Buffalo Pet (BUFF), a maker of organic pet food whose stock came public just last July. It addresses a huge market and is just beginning to attract institutional investors.

Stock Name	Price	Buy Range	Loss Limit
Ulta Beauty (ULTA)	331.95	185-190	172-174
Steel Dynamics (STLD)	0.00	20-21	17.5-18.5
Silver Wheaton (SLW)	0.00	16-17	15-15.5
Las Vegas Sands Corp. (LVS)	0.00	50-52	46-47
Hewlett Packard Enterprise (HPE)	0.00	15-16	13.5-14.5
Barrick Gold (GOLD)	27.20	87-89	80-82
Express (EXPR)	0.00	19.5-20.5	17.5-18
Ellie Mae (ELLI)	0.00	78-83	70-72
Blue Buffalo Pet Products (BUFF)	0.00	21.5-22.5	18.5-19
Briggs and Stratton (BGG)	0.00	22-23.5	19.5-20.5

Current Market Outlook


The market has now been pulling back for nearly three weeks following a strong two-month rebound; currently, most indexes are hovering just above their 50-day lines (though the Nasdaq is living below its 50-day). Among individual stocks, the action has been mixed, with many stocks and sectors breaking down but a fair number holding up well (and some even emerging on positive earnings reports). All in all, we’re nudging our Market Monitor down a notch, but the rubber should meet the road in the coming days—a decisive break of support would have us advising holding more cash, while a strong resumption of the uptrend should present some excellent buying opportunities. For now, we continue to lean bullish, but we’re taking things on a stock-by-stock basis and watching the action closely.

This week’s list is another broad collection of stocks and sectors, though we’re seeing more good growth stories pop up. Our Top Pick this week is one of them: Align Technologies (ALGN) isn’t a barn-burner, but growth is accelerating, earnings estimates are excellent and the stock is hitting new highs.

Stock Name	Price	Buy Range	Loss Limit
Zillow (Z)	76.64	25-26.5	22.5-23
Pioneer Natural Resources (PXD)	0.00	155-159	141-143
Huntsman (HUN)	0.00	13.5-14.5	12-12.5
Home Depot (HD)	0.00	133-136	124-125
Facebook, Inc. (FB)	0.00	116-120	108-110
Cynosure (CYNO)	0.00	46-48.5	43-44
Continental Resources (CLR)	66.19	36-38	33-34
Activision Blizzard, Inc. (ATVI)	0.00	35-37	32.5-33
Align Technology (ALGN)	316.20	73-75.5	68-69
AMN Healthcare (AHS)	0.00	36-38	32.5-33

Current Market Outlook


Since our last issue, the market has rebounded nicely from its sharp one-week pullback in early November, which is obviously good to see. However, not that much has changed from a big picture point of view—the major indexes are in decent shape (the trends remain up), but the advance remains narrow, with a few dozen stocks doing well but many stocks and sectors simply chopping around or trending down. Bottom line, we’ll keep our Market Monitor where it is and stick to our game plan: you should hold your best performers (though taking some partial profits on the way up makes sense), but also hold some cash and be very selective on the buy side.

What’s encouraging is that our screens are finding more and more good growth stories, which is what we see this week. Our Top Pick is a big-cap stock that’s gathering strength as it transitions to the cloud—Autodesk (ADSK) leads its field, but the stock has come alive as big investors anticipate huge recurring revenue ahead.

Stock Name	Price	Buy Range	Loss Limit
Stamps.com (STMP)	0.00	98-103	88-89
PBF Energy (PBF)	38.93	38.5-40.5	36-36.5
Universal Display (OLED)	187.54	49-52	45-46
Monster Beverage Corporation (MNST)	0.00	150-155	139-140
Heartland Payment (HPY)	0.00	76-79	71-72
Home Depot (HD)	0.00	130-133	123-124
Hawaiian Holdings Inc. (HA)	0.00	35-37	31.5-32
General Motors Company (GM)	0.00	35-36.5	32-33
Ctrip.com International Ltd. (CTRP)	34.94	98-104	89-90
Autodesk (ADSK)	229.00	60-63	55.5-56.5

Current Market Outlook


After a hot and heavy few weeks, the growth stock sellers came out of the woodwork during the past two days, driving many down sharply to support. What happens from here will tell the tale in our view—if most growth stocks hold up in this vicinity or push nicely higher, then the odds will favor this being another shakeout. But should we see a weak bounce (or, worse, no bounce), then it’s likely growth stocks will be entering a longer consolidation following their heady runs. We’ll see how it goes, but right now, you should honor your stops and maybe even take a couple of partial profits if you haven’t recently. As for buying, we’re OK with it, but look for stocks near support and keep new positions small.

This week’s list has far more non-growth ideas, which have found some buying in recent days. Our Top Pick is Penn National Gaming (PENN), which is part of a strong group and looks relatively early in its overall advance.

Stock Name	Price	Buy Range	Loss Limit
Abiomed (ABMD)	0.00	136-139	128-131
Berry Global (BERY)	64.22	56.5-58	52-53
CBOE Holdings (CBOE)	0.00	87-90	81-83
Grand Canyon Education (LOPE)	121.03	77-80	70-72
Hancock Holding (HBHC)	0.00	49-51	45-46
ILG Inc. (ILG)	0.00	24.5-26	22-23
Penn National Gaming (PENN)	45.38	20.3-21.3	18.7-19.4
Sherwin-Williams (SHW)	526.09	340-350	320-325
Terex (TEX)	0.00	35.5-37	32.5-33.5
Workday (WDAY)	194.88	94-98	87-90

Current Market Outlook


The market has turned into a case of the haves and have nots, as most major indexes and many cyclical sectors (materials, energy, industrials, transports) remaining in clear uptrends, while growth stocks and indexes either mark time or come under severe distribution. It’s not the healthiest situation—the market tends to do best when everything is in gear—but at this point, we’re not willing to make any broad statements. In other words, we’re just taking the evidence for what it is: The trends of the overall market are up and many stocks are acting well, so you should focus your attention on those strong sectors, while honoring stops and cutting losses in the areas that are under pressure. We’re keeping our Market Monitor at a level seven.
This week’s list is heavy on the market’s strongest areas, with materials, energy, financials and some retail represented. Our Top Pick is Freeport-McMoRan (FCX), the largest copper firm in the world, which appears to be just starting a new uptrend after a horrible bear phase. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
Burlington Stores (BURL)	193.95	86-90	78-80
Children’s Place (PLCE)	0.00	100-105	94-95
Dave & Buster’s (PLAY)	57.01	51-55	45-48
Deere & Company (DE)	0.00	97-101	91-93
Freeport-McMoRan Inc. (FCX)	13.78	14.5-15.5	13-13.5
Halliburton (HAL)	0.00	52-55	48-50
Helmerich & Payne (HP)	63.68	77-80	70-72
iRobot (IRBT)	103.17	53-56	48-50
Jack in the Box (JACK)	0.00	103-107	87-99
Stifel Financial (SF)	56.32	48-50	44-45

Whether you’re kicking up your feet at the beach, cruising through the Caribbean or flying to foreign locales, this month, let’s explore how to make the most of the return of summer travel without blowing up your budget. Plus, we’ll take a closer look at the stocks and ETFs to add to your portfolio to profit from travel trends.

Three years ago this month, I went to see my first movie in a theater since Covid. The film was Top Gun: Maverick, a movie that tapped into my 1980s nostalgia and was more entertaining and coherent than your average sequel. I wasn’t alone – the film grossed nearly $1.5 billion worldwide, making it the highest-grossing movie of Tom Cruise’s career, which is really saying something. Steven Spielberg thanked Cruise for “saving movie theaters.” He may have been right: In the two previous Covid-tainted years, 2020 and 2021, U.S. movie theaters grossed just over $6.5 billion combined – barely more than half of the industry’s 2018 peak of $11.89 billion.

Most companies that were hit hard by Covid have recovered and then some. Many are faring better than ever. But because of investors’ narrow focus on the Magnificent 7 and a handful of artificial intelligence stocks the last two and a half years, share prices across various sectors have not kept pace with revenue and earnings growth. In recent months, we’ve capitalized on that discrepancy by pouncing on United Airlines (UAL), The Cheesecake Factory (CAKE) and, just last month, Carnival Corp. (CCL), with great success.

This month, we hope to mine another quick double-digit winner from the industrials sector. It’s a company that’s thriving like never before, but there’s been a significant lag between the fundamentals and the share price. We hope our timing in adding it to the portfolio now can produce UAL- or CCL-like rapid returns.

Details inside.

A strong earnings season has propelled the broad market to fresh highs, and as we enter mid-August, “rotation” has become the buzzword of the moment.

We’ll respect this action by not pressing too hard on the gas today. But at the same time, with a number of attractive setups floating across my screen, we’re not going to be wildly conservative.

We step up to the plate and take a swing at three new positions today.

The New Year is shaping up to be different from recent years. And market leadership is already changing.

The economy is transforming.

The positive effects of tax cuts and deregulation are starting to take effect. There are also significantly cheaper oil prices, lower interest rates, and the absence of much of the tariff uncertainty from last year. The chances are good that 2026 will feature the strongest economy of the bull market so far.

Most cyclical businesses benefit from a stronger economy. In fact, cyclical stocks have been the best performing market sectors for the past few months. Bank stocks in particular are in a great position because of cheap valuations, rising earnings, and a likely steepening yield curve.

Banks took it on the chin during inflation and rising rates. Although bank stocks have recovered from the loss, they are still near the same price level they were four years ago. The recovery should have further to go. In this issue, I highlight one of the country’s largest regional banks. The bank has rapidly growing earnings and the stock price has momentum.