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Today’s recommendation is a stock that you may never have heard of, and there are pros and cons to that. But it will certainly bring diversification to the portfolio, and I leave it to you to decide if the stock is right for your portfolio as well.

Company insiders know their companies better than anyone else. Here are three rules you can follow to use that knowledge to enhance your returns.

Despite insiders being net sellers of Constellation (STZ) last year, Warren Buffett’s Berkshire Hathaway recently built a billion-dollar stake. Which side should investors take?

Since the S&P 500 is reaching new highs and some of our stocks are making significant moves this week, I thought I’d review those with you today.

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’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

Four stocks in the portfolio reported earnings.

The week has brought some impressive rebounds, and I’m putting two stocks back on Buy today. That brings our total number of Buy-rated positions to six (plus our bond ladder), a slightly more constructive stance than we’ve taken in recent weeks.

The market has been iffy since Fed Chair Jerome Powell’s “prepare for pain” speech at Jackson Hole last Friday.

With interest rates up and (most) stocks down since I’m going with a high-quality name this month.



This healthcare specialist just posted 44% growth in Q2 and has grown its covered lives by 80% over the last 12 months. It’s profitable, and with a bucket of new contracts in the first half of 2022 the business looks set up for a terrific 2023.



Enjoy!

Sell Abercrombie & Fitch (ANF) for a 21% gain and Buy Federated Investors (FII).

For the first time in seemingly months, the market has a bit more negative tone. So should you book some gains on some of your winners?

Many of the undervalued growth stocks that I follow have neutral or bearish price charts right now. No doubt they’re tuckered out from the bullish price action in 2017!

Those of us who work the growth investing side of things here at Cabot certainly enjoy the stock selection process.

Unlike Rodney Dangerfield, cannabis stocks continue to get some respect. They are up 66% since I last suggested them here on July 30, using the AdvisorShares Pure U.S. Cannabis (MSOS) as a guide. In the past month, the sector is up 72%.

The reason: We continue to get high-profile confirmations that the administration of President Donald Trump will reschedule cannabis. This really isn’t news. I’ve been saying this since Trump promised rescheduling in his election campaign a year ago. But mainstream media attention is drawing money into the sector.

The market’s main trend remains up, though there is certainly some rotation going on, with technology stocks pulling back and financials and medical stocks surging. My advice is to react slowly to these shifts, taking things on a stock by stock basis according to what the stocks are actually doing—and not assuming anything.

I believe the market’s churn over the last month or so is understandable given its sharp rebound over the last year. Investors and analysts alike are now assessing valuations of stocks relative to expected growth. In some cases it is giving pause; in others it is spurring action.

The best investment advice I can give to young investors is to start early. The second best advice I can give is to read a lot.

I always find several excellent ideas among the comments and suggestions from our readers.