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Today’s recommended stock is an old-world company in a prosaic business, and its prospects are bright as it reaps improved efficiencies from its recent big merger.

The market is strong, and the strongest sector of all is growth stocks; we have bunch hitting new highs. As to today’s recommendation, it’s a repeat, a stock we owned successfully last year and that looks good to enter again.

I recommend you take rate hike expectations and macro-economic predictions with a grain of salt (they’re fickle things), focus on stocks that are working well, and keep your goals and risk tolerance in mind.

The S&P 500 crossed above its 25-day moving average line on April 6 and is back above its 50-day moving average line today. It is only 16% off its previous high. Granted, under the circumstances that doesn’t seem quite right. But nevertheless, there it is.

I hope everyone had a wonderful Fourth of July! On Wall Street, the celebration continues, as stocks have stretched to new 2023 highs as we enter the second half of the year. Several of our stocks are hitting new 52-week or even all-time highs, as the bull market is no longer just a mega-cap tech or AI stocks phenomenon, with many sectors and subsectors now along for the ride. So today, we add a cyclical stock that has been acting like a growth stock – so much so that it caught the attention of Mike Cintolo, who recommended it to his Cabot Top Ten Trader readers.

Options order flow can be a highly bullish signal for the underlying stock, especially when you see oversized trades that really stand out.

Boeing stock was a strong performer prior to last weekend’s Ethiopian Airlines crash. Is the ensuing selloff reason to invest in a good company on bad news?

Four stocks in our portfolio’s have reported earnings.

Diversification is especially important for long-term buy-and-hold investors. If you plan to hold most of your investments through multiple market cycles, you’ll want to do whatever you can to make sure your portfolio doesn’t get wiped out by one event or sector correction.

The market has rallied for more than a year in the happy space between inflation and recession. But that dynamic is unlikely to persist. Amid persistent inflation, it is likely that the market will have to contend with high interest rates or a faltering economy. Each one is problematic.

In a flatter or faltering market, dividends provide a bigger part of total returns. Let’s get ahead of the curve and get a big fat yield.

In this issue, I highlight a stock with a massive dividend yield that has shown good price stability for several years. The company can also thrive amidst inflation and high or rising interest rates and can provide a high income return even if the market struggles through an inflation/recession catch-22.

Last week, I introduced this year’s “10 Stocks to Buy & Hold Forever” series, in which I ask all the Cabot analysts to nominate stocks.

Current Market Outlook


First off, a heads up: Our offices will be closed Thursday and Friday, and next week is one of the two scheduled weeks that we take a break from Top Ten all year. We’re likely to send a brief update this Wednesday with updated stops, but after that, your next update will come Friday, December 4. Have a great long weekend!

As for the market, there remain a couple of flies in the ointment (the Nasdaq still hasn’t reached a new high; sentiment is a bit bubbly), but it’s fair to say the recent action has been constructive, with leading stocks avoiding another bout of selling so far and more individual names perking up. You should still go slow, but we’re increasingly optimistic.

This week’s list has a wide variety of names (big, small, growth, cyclical) that are all finding strength, another good sign for the market. Our Top Pick is Halozyme (HALO), which acts powerfully and has terrific metrics. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
Alcoa (AA)	19.82	18.3-19.7	15.2-16.2
Bilibili (BILI)	63.31	57.5-60.5	51-53
Celsius Holdings (CELH)	33.73	31.5-34	25.5-27.5
Halozyme Therapeutics (HALO)	40.00	38.5-41	33.5-35
Huazhu Group (HTHT)	51.33	49.5-51	44.5-45.5
II-VI Incorporated (IIVI)	66.45	61-64	54-56
Inspire Medical Systems (INSP)	183.30	172-182	150-155
Moderna (MRNA)	100.92	95-98	84-86
Omnicell (OMCL)	106.80	100-104	90-92
Sonos (SONO)	21.41	20.5-22	17-18

For the first time in the new year, the market had a bad week. The declines aren’t terribly surprising or worrisome (for now), as the recent rally had been without much of a pause.

Following a monster week of earnings, a Federal Reserve interest rate hike, and the January Jobs report, “risk on” continues to be the theme in early 2023 as the Nasdaq once again led the indexes higher.

A very promising start to the trading week, which saw the indexes surge higher by 5%, was somewhat washed away by Friday’s post Jobs Report sell-off. And while the steep declines Friday were worrisome, big picture the S&P 500 still managed to gain 1.5% on the week, the Dow rallied 2%, and the Nasdaq added 0.7%.