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In times like these, you need low-beta stocks in your portfolio to help you sleep at night. Here are five that look particularly reliable right now.

It’s a billion-dollar question that’s been in analysts’ minds, but Nvidia’s earnings brought it to the forefront: Who’s actually making money with AI?

Multiple buy-side analysts asked about the AI return on investment (ROI) in Nvidia’s most recent earnings call; it’s a billion-dollar question.

The bull market is alive and well, as both of Cabot’s trend-following market-timing indicators are now positive, so I continue to recommend that you be heavily invested.

Today’s recommendation is a fast-growing company helping businesses in the cloud, one of today’s major growth themes. Aggressive investors should love it.



However, the addition of this stock means I need to sell one, and the unfortunate victim is the stock that’s our biggest loser (not that we have many).



Full details in the issue.

Current Market Outlook


Last Thursday’s massive selloff was a shot across the market’s bow, and today saw the broad market take another punch to the gut. That said, the evidence remains mostly bullish at this point—the trends of the major indexes are up, nearly all institutional-quality leading growth stocks are still acting fine and many secondary indicators (such as the number of stocks hitting new lows, which remains microscopic) are also pointing higher. Of course, 2020 has been all about staying flexible, and right now isn’t a time for complacency; it’s always possible the 11-week advance is going to lead to a sharper correction or consolidation. Thus, you should be open to any possibility, but right now, the evidence remains bullish, so we advise remaining heavily invested.

This week’s list has a bunch of growth-oriented titles that are showing attractive setups. Our Top Pick is Lululemon (LULU), which could pull in further after earnings, but our guess is that this dip will give way to higher prices in the weeks ahead.

Stock Name	Price	Buy Range	Loss Limit
Argenx SE (ARGX)	222.54	208-215	187-191
Bandwidth Inc. (BAND)	129.19	117-121	102-105
Coupa Software (COUP)	262.20	225-231	198-201
CrowdStrike (CRWD)	105.02	93-97	84-86
DraftKings Inc. (DKNG)	38.26	37-41	30-33
Fiverr (FVRR)	71.41	60-64	51.5-53.5
Lululemon Athletica (LULU)	304.69	291-301	264-269
Novavax, Inc. (NVAX)	65.95	47-50.5	39-41
Peloton (PTON)	53.03	47-50	40-41.5
Redfin (RDFN)	40.40	30.5-32.5	25.5-27

Macro environment aside, this SaaS stock has all the hallmarks of a future sector leader and is poised to break out when the market turns.

Artificial intelligence is an undeniable mega-trend, but the story is evolving from “tell me” to “show me” as companies report earnings.

Finding an enduring stock to buy means identifying services that are essential in any economic environment, and this SaaS stock offers authentication services that are critical to software companies of all sizes.

Including “AI” in your earnings calls was a cheat code for companies in the first half of the year, but investors ultimately need to see those efforts monetized, and it’s already starting.

There is no sugarcoating it: last week was ugly for the market as the S&P 500 fell 2.3%, the Dow lost 3.1%, and the Nasdaq declined by another 2.4%. And while the market looks terrible, on a positive note, stocks had their best day of the year on Friday.

Cloud computing is what’s holding both the world and the stock market together through these trying times. Here are the best cloud computing stocks.

In the February issue of Cabot Early Opportunities, we continue to pursue stocks offering exposure to a diversity of end markets.

Our top pick this month is a mega-cap tech company making waves with AI investments that promise to shake up one of the largest software markets in the world.

We also take a look at a small industrial company, cover two software stocks with leadership positions in their respective markets and peak at a recovering semiconductor stock.

As always, there should be something for everyone in this month’s issue!

Artificial intelligence is one of the fastest-growing markets in the world, and artificial intelligence stocks have benefitted.

After last week’s selloff in tech, this week has been relatively calm, though the action at mid-day today suggests we could see more selling before the closing bell.

Why is the stock market up 30% in the last two months in the face of the COVID-19 crisis? Guest contributor Chris Douthit explains.

The buyers finally stepped up after a brutal first three weeks of April, and suddenly the bull market feels back on again. One week doesn’t make a rally – not if the Fed (which rears its ugly head again this week) has anything to say about it. But for now, the selling has ceased, with an assist from a better-than-expected earnings season. Today’s addition isn’t exciting – it specializes in things like pipes, valves and water meters – but it’s a practical – and potentially quite profitable – way to play America’s geyser of infrastructure spending. It was newly recommended by Mike Cintolo to his Cabot Top Ten Trader readers.

One of the trends that’s making headlines this earnings season is the success of companies that are adopting cloud-based technologies. While reading The Wall Street Journal on Monday, I noticed that Oracle (ORCL) CEO Mark Hurd spoke at the Oracle OpenWorld conference in San Francisco. Among his headline-worthy comments was the statement that Oracle now has virtually 100% of its portfolio rewritten, rebuilt and modernized for the cloud. That’s a big endorsement from a company with a $162 billion market cap. And Oracle isn’t exactly an outlier.

Last week, I went snowboarding in Vermont for a couple days. I booked my hotel room at the very last minute, only a couple of hours before I left on Wednesday. There were a few reasons for my procrastination, including a blizzard menacing the Northeast. The fourth hotel I called, an...

It’s election week, and it will be the elephant in the room for investors until a winner is declared. Will that be before the market opens on Wednesday, as in 2016? Will it take until this weekend, like it did in 2020? Or could this toss-up election drag out even longer, a la Bush/Gore in 2000? Either of the two former scenarios probably wouldn’t impact the market much. The latter would, at least for a time. So let’s all hope for a quick result. Sprinkle in the latest round of Fed cuts later in the week, plus more than a handful of earnings reports for Stock of the Week stocks, and it’s an incredibly pivotal week for the market.

With so much up in the air, today we add a relatively “safe” large-cap stock with a decent yield, low beta and impressive earnings growth. It’s been a staple of Tom Hutchinson’s Cabot Dividend Investor portfolio for quite some time.

Details inside.

A week ago, it felt like a bull market in name only. Now, it feels like a full-fledged bull market, with participation coming from places other than just mega caps and artificial intelligence. That’s reflected in our portfolio, where roughly half our stocks are hitting or near 52-week highs. Still, there’s always a chance things could crater, especially with the S&P 500 up 14% year to date and the Nasdaq up 30%. So today we add some needed value, with the bonus benefit of giving us more overseas exposure, in the form of an undervalued U.K. life insurance company courtesy of Cabot Value Investor Chief Analyst Bruce Kaser.