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This month we are going with a small industrial company that is showing how consistent focus on operational improvement can pay dividends.

Once thought of as a highly cyclical company with management that tended to drop the ball, execution has improved dramatically. In 2022 revenue was up 14% and EPS was up 41%.

With exposure to megatrends like infrastructure and global electrification, I see more upside ahead.

Enjoy!

As we like to say “up is good,” so last week’s snapback from the major indexes and many stocks and sectors is certainly a good thing, and we like that many stocks have actually built six- to 10-week launching pads. Thus, if the rally can continue, there should be plenty of names to sink our teeth into assuming earnings season goes well. However, first things first: The market and most stocks aren’t out of the woods yet, having “only” rallied back into resistance, and earnings season is still in full swing. We’ll leave our Market Monitor at a level 6, but we’ll change that quickly if the bulls show some follow-on buying.

This week’s list is a hodgepodge of earnings winners, resilient growth names and some commodity ideas as well. Our Top Pick is a volatile chip equipment maker with a system that’s perfectly suited for the AI revolution. Earnings are due next week, so keep it small here and see what the quarterly report brings.

I maintain a running watch list of the market’s top micro-cap stocks. Here are three that are currently on my radar.

After a March 1 blastoff to new highs, the major indexes took a cooling dip on Thursday. But the trends are still aggressively up for stocks, and the vast majority of our previous picks are holding up near their highs.

Now that Election Day has mercifully arrived, here’s how to hedge the presidential election by trading options--no matter who wins.

Growth stocks have been redefined as companies whose earnings growth outperform the market averages.

Earnings Updates: ABNB, NRDS, TIXT, SEDG, UDMY

Growth stocks have been hit hard in the last few weeks, but other sectors have been immune and the options market is signaling that investors are ready to turn bullish.

It’s been an interesting week thus far—we’ve seen interest rates take a nice step backward (10-year note is down 16 basis points this week), which has helped the indexes build on last week’s show of support, albeit in a modest way (up 0.5% to 1.5%, in general).

The market and leading stocks have hit a few potholes during the past couple of days, and given the recent run and some short-term measures, more selling wouldn’t be shocking. But bigger picture, the outlook remains sunny: The trends are up for the major indexes and many fresh leading stocks have emerged. We’ve done a bunch of buying during the past month, though we’re still holding 24% on the sideline as we see how these new buys act.

In tonight’s issue, we talk about our market view, give you our latest thoughts on all our recommendations and write about the two themes that we think are leading the market higher, at least for now. Throw in some new ideas and there’s something for everyone in tonight’s Growth Investor.

Twenty-eight companies just formed the Zero Emission Transportation Association (ZETA). What is it, and should you invest in any of them?

Benjamin Graham, the father of value investing, taught Warren Buffett at Columbia.

“Do you know a bad investor?” Because I naturally assume that anyone who reads my columns is a very good investor.

Some investors are capable of assessing the market’s current status by studying charts. I prefer to “run the numbers.”

High-quality stocks with low PEG ratios have outperformed the stock market indexes in both advancing and declining markets.

All of the stories on financial greed teach the same lesson: if it seems too good to be true, it probably is.

In the December Issue of Cabot Early Opportunities we try to capitalize on the pullback in stocks with the addition of disruptive players in the electric vehicle (EV) and metaverse arenas as well as an up-and-coming apparel/footwear company. We also take a swing at a dinosaur that may finally start to become relevant again following the spin-out of a dying business segment.