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The performance of these financial stocks goes to show that you don’t have to be an AI company to thrive, and all three are booming in 2025.

Cash is king, or so they say, but the fact is, carrying too much cash for the last few years may have left you behind the eight ball, and it’s not set to get much better.

** Because of President’s Day, our offices will be closed next Monday, February 15 — so your next Cabot Profit Booster issue will be published Wednesday, February 17.

While Emerson Electric Co.’s (EMR 36.09 NYSE – yield 3.70%) short-term prospects depend on the vagaries of the global economy, the company has a history of innovation, as well as manufacturing and marketing strength, that bodes well for the longer term. The company’s brands are well-known and well-respected around the...

This morning Inspire (INSP) issued preliminary Q4 2022 results that came in ahead of expectations. Management said it sees Q4 revenue up 76% to around $137.7 million (consensus was at $117 million, or +49%).

DividendLab offers portfolio based on conservative ideas in order to assist investors in maximizing dividend growth and at the same time, produce better returns despite any economic condition of any market that they try to invest in. DividendLab provides investors with different strategies and techniques for hedging portfolios in order...

Sell Terex (TEX)

We jumped into TEX four months ago on March 3, literally just a few days before the stock took a dive that ended up sending it 30% lower over the next few weeks. We held on and those of you that added shares along the way should have a much better return than the roughly 7% gain showing in our official portfolio. With so many growthier stocks acting well and TEX up over 50% from its April lows, I’m going to take the modest gain and boot it from our portfolio today. To be clear, I don’t hate TEX and think the bullish thesis I presented back in March still holds true. That said, the reality is there are just too many other stocks with better upside potential right now and I want to maintain concentration in those while taking down our market exposure ever so slightly through next week’s Fed meeting (our next Issue is due out in two weeks). SELL

Cree Inc. (CREE) is a leader in the production of light emitting diodes.

WHAT TO DO NOW: The evidence has improved of late, though we haven’t seen many decisive green lights from our indicators. Still, with so much cash, we’ll dip a couple of toes in tonight and then follow up … if the good vibes continue. Tonight, we’ll add half-sized positions (5% of the account) in Eli Lilly (LLY) and JFrog (FROG), leaving us with a still-big 55% cash hoard. Details below.

Repligen (RGEN) reported Q2 results before the bell today that surpassed expectations and has the stock up nicely (6% at mid-day) and bucking the broader market weakness. Revenue was up 86% to $163 million, beating by nearly $19 million, while adjusted EPS of $0.79 rose by 88% and beat by $0.27. Management raised full-year guidance to a range of $625 million to $645 million (up 71% to 76%), well above consensus estimates of $586 million. Adjusted EPS guidance goes to $2.71 - $2.78, way above consensus of $1.71. Gross margins are up a lot, from 57.9% in the year ago quarter to 62% in Q2.

We’re adding a pure-play security solutions provider to Cabot Small-Cap Confidential to increase our security software exposure. This company is growing revenue well over 20% and is expanding its portfolio of solutions to address large and rapidly growing markets.

As markets weigh tariff and trade risks, we will continue our efforts to protect assets through portfolio rebalancing while remaining alert to trading opportunities. Our diversified and global Explorer stocks are doing well.

International investors will be important at the margin since they account for 18% of U.S. stock ownership.

The retreat of the U.S. dollar, down 10% in the last six months, and the emerging premium for U.S. bond markets is leading to higher yields (interest rates).

I recently noticed a few popular stocks such as MicroStrategy (MSTR) offering exposure to leveraged Bitcoin which to me seems like excessive risk and a sign of potential trouble.

This is like pouring gasoline on a roaring fire. It reminds me of a quote from Edward Chancellor’s book The Price of Time, which offered this gem:

“……as a rule, panics do not destroy capital; they merely reveal the extent to which it has previously been destroyed by [the taking on of excessive leverage in good times].”

Current Market Outlook


The Nasdaq and leading stocks had a huge reversal today, with many names that had gone vertical suffering some heavy-volume selling, representing another shot across the bow. Still, as we’ve written before, one day does not a trend make; the trend of the Nasdaq and growth stocks remain up, while the broader indexes and cyclical sectors are positive but mostly range-bound. As has been the case earlier in the rally, what happens from here will be key--continued distribution would be a sign that the current run could be ending, likely followed by a well-deserved digestion phase, but strong support in the near future would likely tell us this was just another brief stumble on the way to higher prices. Stepping back, most of the evidence remains positive, so we’re still bullish, but the next few days will be key.

As opposed to the last two weeks, this week’s list is back to having a leadership, growth-ier feel to it. Our Top Pick is Alibaba (BABA), which has always had the makings of a liquid leader, and is helping to lead the group rally in Chinese stocks as it lifts out of a two-year rest.

Stock Name	Price	Buy Range	Loss Limit
Alibaba (BABA)	254.81	244-254	220-225
Bill.com Holdings (BILL)	88.76	81-85	73-75
Kinross Gold (KGC)	8.19	7.2-7.6	6.5-6.7
Marvell Technology Group (MRVL)	36.88	35-37	31.5-32.5
Pacira Biosiences (PCRX)	54.85	54-56	47.5-49
Redfin (RDFN)	40.40	34.5-36.5	30-31.5
Roku, Inc. (ROKU)	150.46	147-154	128-132
Splunk (SPLK)	207.67	192-198	175-178
Sunrun (RUN)	38.40	27.5-29.5	23.5-24.5
XP Inc. (XP)	44.59	43-46	38-39.5

There are roughly 200 million commercial vehicles in the world. They’re all trying to get to the right place, at the right time, at the lowest possible cost, without crashing. Managing these fleets probably isn’t as stressful as being an air traffic controller, but it’s right up there!
To help get the job done, fleet managers are increasingly turning to fleet telematics solutions. This specialized hardware and software can improve driver safety records, reduce accidents and theft, and reduce operating costs. Dramatic increases in fleet efficiency boost an organization’s bottom line. The bigger the group is, the bigger the potential opportunity.
All the details are inside this month’s issue of Cabot Small-Cap Confidential. Enjoy!

Getting an early head start on a career or trade that you’re passionate about can mean the difference between just punching the clock and doing meaningful work that’s satisfying in its own right. On top of that, you can potentially save hundreds of thousands of dollars on education expenses and make significantly more over the course of your career by tailoring your educational pursuits to match your career goals. This month, we’ll help you outline a blueprint to pursue your dreams while maximizing your earnings, and we’ll discuss the pros and cons of investing in your employer and industry.

Even as worries fade over the recent Middle East flare-up, new tariff-related headlines have lately crept back into the news. However, stocks have taken it in stride by ignoring what would normally be “bad” news. In view of this, we’re pleased with the market’s resilience—and it’s also welcome that it hasn’t become overheated with too much enthusiasm yet. We’re still seeing a few flies here and there, with some stocks having trouble breaking above resistance, but a growing number of stocks are joining the parade, with a nice mixture of growthy and cyclical names getting into sync with the general march forward. All told, we like what we’re seeing, and in view of the continued strength, we’re raising our Market Monitor to a level 8.

This week’s list features names across multiple industries, which we view as a sign that categorical strength is building. Our Top Pick is a sporting goods giant that has multiple growth tailwinds and is tightening up as the 25-day line has caught up. We’re fine entering here or (preferably) on a dip.