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The major indexes are having another good day, and this time so are most leading growth titles. As of 2 p.m. ET, the Dow is up 180 points while the Nasdaq is in the green by 179 points.

Most of our holdings are healthy, and several are hitting new highs or positioned to do so soon. Several more names are well positioned to begin new rallies if the market gets in gear. One dark cloud is CVS Health (CVS), which I’m putting on Hold today as the stock’s slump intensifies.

The Cabot Global Stocks Explorer portfolio is doing well in 2019 and a number of recommendations have recently surged on the strength of impressive earnings and an improving environment for emerging and international stocks.

Another down week – and down day – for stocks as tariff and inflation anxieties continue to run rampant. We may be headed toward a re-test of the post-Liberation Day lows from the beginning of the month. Fortunately, most of our stocks are holding up well, with no big losses in the last week despite a 4.3% decline in the S&P 500. In fact, a number of our stocks are thriving. Today, we add another stock that’s going against the grain of the market. It’s a new recommendation from Tyler Laundon to his Cabot Early Opportunities audience. It’s the kind of all-weather holding that can keep its head above water in this volatile market – and perhaps thrive if/when the tariff dam finally breaks.

You may have seen the term “EBITDA” used in the financial media, but what exactly is it, and why do investors care?

This is a massive week for the stock market. Forty percent of the S&P 500 will report second-quarter earnings results; the Fed holds its July meeting; the PCE report is due out Thursday, jobs numbers come out Friday, and President Trump’s tariff deadline is Friday, though several key deals have already been struck. With stocks precariously at all-time highs entering the week, these news events loom as potential minefields. If the market can navigate it without getting blown up, then perhaps it will continue to rise until Labor Day.

But we can only go with the evidence in front of us. And today, we try to strike while the market’s iron is still hot by adding a mid-cap medtech stock that was Tyler Laundon’s top pick in this month’s issue of his Cabot Early Opportunities advisory.

Details inside.

NOTE: We’re sending this a day early as I’m soon to embark on a trip with the kiddos over the next week. I will be working a good amount from the road, though, and will have updates if need be. Also, next week’s issue will be published as scheduled.

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WHAT TO DO NOW: The market remains very mixed, with growth measures still generally pointed sideways to down, while the broad market remains in solid shape. What’s interesting, though, is that we’re seeing more growth stocks kick into gear, along with some huge buying action in a few “cyclical growth” names. Tonight we’re making one move—adding a half-sized stake in Macom Tech (MTSI)—but are keeping our eyes open for a broader character change among growth stocks. Our cash position will be around 53%.

While I’m keeping most stocks at Buy this week, I do think near-term upside is somewhat limited and that being more selective with new purchases is a wise decision. Look to nibble on those stocks that aren’t overly extended but still have strong momentum.

The market has softened over the past week, and we’ve seen some high-volume selling in former leading stocks, so I’m now pulling back a bit on risk, which is one reason today’s recommendation is a low-risk utility stock.
Technically part of the Safe Income portfolio of Cabot Dividend Investor, this stock pays a healthy 2.6% yield and it has decent upside potential as well.
As for the current portfolio, we still have some stocks hitting new highs, but we’ve also got some showing renewed weakness, so today I have two sell recommendations. Details in the issue.

The market remains in an uptrend, though the correction that started last week may do a little more damage. If so, try to take advantage of it, remembering that buying low is the goal.
Today’s stock is a name you know—a name all Americans know—and I think it’s a good buy here after correcting 39% last fall. Crista Huff is the Cabot analyst who recommended it most recently, in part on fundamental grounds, and my reading of the chart confirms her conclusion.
As for the current portfolio, we continue to make great progress, but there’s always room for improvement. The only changes this week are two upgrades from Hold to Buy. Details inside.

Buy Second Half Reddit (RDDT)

Today’s new addition has all the attributes we look for in a small-cap software stock.

The company is young, management is insanely smart, the products fit a huge need, growth is 30%+, and the sales team is growing quickly.



In short, it’s an extremely attractive opportunity. Which is why we’re jumping in right after the company came public.



Enjoy!

Note: To accommodate our Thanksgiving week schedule, there will be no issue of Cabot Stock of the Week published next week. The next issue will be published November 28.

As for today, the broad market’s long-term trend remains up, and today my recommendation is an undervalued stock recommended by Azmath Rahiman, chief analyst of Cabot Benjamin Graham Value Investor.

After a weekend that many feared would sink the market as the Middle East situation was flaring up, to the surprise of many, the market didn’t sell off and, in fact, by week’s end the S&P 500 had gained 3.4%, the Dow had rallied 3.8% and the Nasdaq added 4.2%.

Jacob Mintz, Chief Analyst of Cabot Options Trader, Cabot Options Trader Pro, and Cabot Profit Booster talks about Options Trading.
Among the topics he covers:
* Why options should be part of every investor’s toolkit
* How easy, and profitable, it is to do options trades
* How options can be used to enhance the return on trades you are already making
* 2 options trades you can make right now

Stocks are churning in place, appearing unsure of how to proceed this month. The Dow Jones Industrial Average finally retraced its January 2018 record high. Will it advance promptly or establish a trading range? If we look back to recent patterns on the S&P 500 index, which retraced its January high in August, and we presume that the Dow might follow suit, then we’re in for some sideways trading on the Dow.

The market is hitting new highs, thanks to Nvidia (NVDA). And while blowout earnings from the artificial intelligence leader were good for the many AI-related plays we have in the Stock of the Week portfolio, we have more than our share of non-AI stocks that are thriving as well (see American Eagle Outfitters (AEO) and Aviva (AVVIY)). Today, however, we add a hiding-in-plain-sight all-star, a company so mainstream and obvious that it may already be in your portfolio … or it’s possible you sold out of it along with many other institutional investors during a brutal stretch in 2022. Now, it’s fully back – and yet the shares still trade well below their 2021 peak. It’s a new recommendation from Tyler Laundon in his Cabot Early Opportunities advisory.

Details inside.