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Investor attention is rotating from the mega-cap growth stocks to the rest of the market which means other stocks, like these solid dividend payers, are set to outperform.

I look around to see what history is happening in the world now and I see above all the rapid development of China. While here in the U.S. we struggle to regain positive economic growth, this year China’s economy will grow 8% ... maybe more. Which means China is a great place to find growth companies! One of my long-term favorites in the country is Ctrip.com (CTRP), which has the country’s biggest travel-related Web site. The company’s revenues were $99 million in 2006, $160 million in 2007 and $215 million in 2008. Earnings were equally impressive.

Thoratec Corporation (THOR, Nasdaq) is the world leader in device-based mechanical circulatory support therapies to save, support and restore failing hearts. We have held shares of this company for years watching the technology develop for its LVAS (Left Ventricular Assist System). The company has received FDA Pre-Market Approval allowing the...

There’s a lot on my mind lately: hurricanes, child-rearing, college freshmen, human tragedy and Dollar Tree (DLTR).

As the market continues to strengthen, we are very close to having all of our market timing indicators back on the bullish side. In the meantime, most of our stocks look good, with many hitting new highs in recent days. In fact, I can find none to sell today.

As for today’s recommendation, it’s a fast-growing Chinese stock with a product you’re probably familiar with. It’s not a low-risk stock, but with the right timing, it could be a home run.

There’s been a variety of news pertaining to airlines, and also to the Boeing 737 MAX jet problem, in recent weeks. It can be hard to know which industry-specific stocks to own and which to ignore. I always use profit growth as my first line of defense when deciding which stocks might join my portfolios, on the theory that rising profits should theoretically lead to rising share prices.

Tesla (TSLA) has had a rough start to the year. Entering Wednesday, TSLA shares were down nearly 42% year to date thanks to a bitter cocktail of sagging revenues, narrowing margins, and increased competition, especially in China. At the start of this week, TSLA shares had dipped to 142, a 52-week low, and were trading at their cheapest valuation on a price-to-earnings basis since last May and on a price-to-book-value basis since 2019.

The past three weeks have done a lot to improve the market’s stance, in our view. At long last, the action of the indexes and most potential leaders has tightened up; no longer are names gapping up or down randomly based on overseas news. And this tightness has, in the case of many stocks, come after a period of accumulation. In other words, we’re seeing a change of character for the good—it looks like many stocks are poised for a move higher. Until that move really begins, we’ll leave our Market Monitor in neutral territory ... but be sure to have your shopping list ready should the bulls flex their muscles.

This week’s list continues the string of high-potential stocks that are either finishing up their base-building work, or have already pushed to new highs ahead of the market. Our favorite is Verisign (VRSN), a steady growth play as the leading Internet domain registrar. Try to buy on weakness.

Stock Name	Price	Buy Range	Loss Limit
Express Scripts Holding Company (ESRX)	79.25	59-61.5	-
Five Below (FIVE)	134.58	30-32	-
Mindray Medical (MR)	0.00	33.5-35.5	-
Ocwen Financial (OCN)	0.00	21.5-23	-
Pharmacyclics (PCYC)	0.00	54-56	-
Rackspace (RAX)	0.00	51-53	-
SeaDrill Limited (SDRL)	0.00	38-39.5	-
Team Health Holdings (TMH)	0.00	25-27	-
VeriSign (VRSN)	190.71	44.5-46.5	-
Weyerhaeuser (WY)	0.00	23-24	-

The market continues to improve, so we’re only adding – not subtracting – to the Stock of the Week portfolio again today. Our latest addition is a very recognizable technology name that was once a market darling but has fallen on hard times in recent years. Now it’s starting to show signs of life again, and our Bruce Kaser thinks it’s a prime turnaround candidate. Perhaps it will make like another big turnaround story in our portfolio that’s hitting new all-time highs today…

Calm has been restored to the stock market, at least for now. And while stocks haven’t exploded to the upside, it does appear as if a temporary bottom has been put in. With that in mind, today we add a pure growth stock – a cybersecurity play with plenty of momentum, recommended by Mike Cintolo to his Cabot Top Ten Trader audience last week. We also have no sells from our own portfolio, as many of them have been in full recovery mode the last week or two.

Details inside.

The Fed went big!

Everyone knew Jerome Powell and company were going to (finally) cut the federal funds rate for the first time in four and a half years on Wednesday. The question was by how much – 50 basis points (0.50%) or 25 basis points (0.25%)? To my mild surprise (but not to Wall Street’s – the options market had swung to a 59% probability that it would be 50 bps prior to the announcement), the Fed opted for the larger cut, slashing rates from 5.25-5.5% to a 4.75-5.25% range. So far, the market seems unsure how to take the hefty cut – all three major indexes were up more than half a percent immediately following yesterday’s 2 p.m. ET announcement, but then were narrowly in the red by day’s end.

Last week, the Hong Kong Monetary Authority hosted hundreds of bankers including the heads of 90 global financial institutions to discuss the current status and future outlook for the world’s capital markets. Despite the increasingly tight grip that China has on Hong Kong, which is leading to a diminished relevance for the island state, notables including Morgan Stanley CEO James Gorman and Goldman Sachs head David Solomon participated in the in-person meetings. The draw: Hong Kong remains an important gatekeeper for access to mainland China’s financial markets.

As the dividing line between the public and private sectors becomes increasingly blurred, it’s readily apparent that long-term investment decisions must now be evaluated through a new lens. And that means asking a simple question: “Could the financial asset I’m interested in acquiring be potentially influenced through direct federal intervention?”

So much for the market rebound. Or is this a classic double bottom before the real rally begins after Wednesday’s “Liberation Day” full of Trump’s latest round of mysterious tariffs finally passes and Wall Street breathes a collective sigh of relief? I’m betting the clouds part sooner rather than later, as investor pessimism has reached levels not seen since the October 2022 bear market bottom. So today, despite saying goodbye to a few more underperforming positions, I’m betting on the upside of growth, adding a mid-cap software stock recently recommended by Tyler Laundon to his Cabot Early Opportunities readers.

Details inside.

Make money three ways from great growth stocks.