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The AI infrastructure trade is as relevant as ever on Wall Street, and while it’s no CoreWeave, this smaller AI play is still benefiting mightily.

The much-needed market correction is now two weeks old and thus still quite young, but as it evolves, and we adapt to its actions, we will continue to cultivate a portfolio of the best stocks by selling our laggards and holding our leaders.

Last week that meant selling four stocks, but this week it means only a couple of downgrades to hold, along with one upgrade to buy.



As for this week’s recommendation, it’s a big old high-tech company that is currently range bound, but whose valuation and chart are attractive, so long-term investment should work out well. Plus it pays a dividend of 4.3%.



Details in the issue.

This portfolio stock reported Q3 results yesterday that came in ahead of expectations.

The U.S. economy is growing more quickly than before the pandemic, both the S&P 500 and S&P 600 are up modestly over the past week and, so far, this earnings season has been a massive improvement over the train wreck of the first-quarter reporting season.

The economy is still solid and the trade war thaw is taking away a big headline risk for the market.

Markets reacted well to yesterday’s inflation data that showed evidence of cooling as the economic recovery continued amid pandemic-related strained supply chains and signs that the recent rise in Covid-19 infections is starting to slow some business activity.

Trends are up, but overextended, suggesting that a normal correction is likely. Our Hi-Lo Alert, which measures the number of Dow stocks above their medium-term moving averages, is at its highest point since May, just two weeks before the market got very rocky and embarked on the course that took it down to the August low.

If you’re seeking rapid growth, you might want to look at a company in the health industry that I featured it in Cabot Stock of the Month Report: Warner Chilcott (WCRX).

COVID caused investors to flock to gold, a traditional safe haven. These are the 5 best-performing gold mining stocks. Keep reading to learn.

The small-cap indices (Russell 2000 and S&P 600) have been totally uninspiring over the last three weeks, which is sort of odd given that the Fed cut interest rates by 50 basis points almost exactly three weeks ago.

Theoretically, lower rates should benefit small caps given higher exposure to variable rate debt, which requires lower interest payments as rates decline.

With this week’s PPI inflation number (Tuesday morning) coming in lower than expected and the CPI reading (Wednesday morning) coming in as expected, the trend of lower inflation remains intact.

That’s a good thing, unless you have a hankering to buy more Treasuries and have held off.

The 2-year Treasury yield is now below 4%.

The GLP-1 craze has faded, and with it, so have the share prices of Eli Lilly (LLY) and Novo Nordisk (NVO). With both oversold, which is the better buy? Let’s break down LLY vs. NVO.

Procept (PRCT) beat on the top line and missed on the bottom line. Revenue grew 135% to $20.3 million ($3.1 million beat) while EPS of -$0.51 missed by $0.03.

The world’s largest mega regions are where much of the global growth is happening. And one Chinese stock has its tentacles in several of them.

Business leaders like Amory Houghton and Whitney MacMillan are why America will bounce back from the coronavirus pandemic.

This week I’m adding a recent earnings season winner, an American developer of all-flash data storage hardware and software products, Pure Storage (PSTG).

Today’s note includes ratings changes, the podcast and the Catalyst Report. We publish the Catalyst Report on the Friday after each monthly issue of the Cabot Turnaround Letter.

Today’s note includes earnings updates, ratings changes and the podcast.