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Despite the sharp rebound in the major indexes in recent months, there’s still a lot of value out there right now. Here are three undervalued gems that also offer a hefty dividend yield, according to Sure Dividend.

First, note that next week’s Presidents Day holiday means we will publish Cabot Stock of the Week a day later, on Tuesday, February 16th.

As for the market. last week’s GameStop affair had the potential to trigger a broad correction—but it didn’t. Thus, the bull market remains intact, the buyers remain in charge and I am happy to recommend a fast-growing company with a great story today.



Sadly, that means I need to sell something to stay at or under 20 stocks, and the victim today (locking in a nice profit) is Qualcomm (QCOM).



Details inside.

If you want excitement via potential takeover stocks, Cabot’s Crista Huff offer Forbes readers three ideas to consider. These three stocks are currently in play, meaning that it’s been revealed that bigger companies are interested in buying them.

Porch Group (PRCH) reported yesterday afternoon with results coming in ahead of management guidance and significant contributions from acquired companies. Despite the strong high-level numbers, the stock is selling off today and we’re going to step aside with the modest profit we still have (around 25%).

Cardlytics (CDLX) reported Q4 2020 numbers this morning that surpassed revenue expectations by roughly 10% and missed modestly on earnings. Revenue was down 3.2% to $67.1 million (beating by $6.2 million) while adjusted EPS of -$0.05 missed by $0.02. Management gave 2021 guidance that called for revenue of $250 million to $275 million, which straddles consensus expectations of $260 million (up 40%).

Chart is an interesting company, for sure, and we would be happy to buy again at much lower prices.

We do think many of this week’s pullbacks could develop into nice early-stage entries, though we’d prefer some of these names settle down for a few days.

The recent rally has been enough to turn our Cabot Tides positive, as three of the five indexes we track are clearly above their 50-day lines. That’s certainly a positive and tells us to put some money back to work.

LEAP Options on Oil Stocks

When the technology bubble burst in 2000, many investors held onto their stocks even as they plummeted, believing in the mantra of time, not timing. In the end, it’s market timing indicators and having sell disciplines in place that count.

I am a numbers person--especially when it comes to stock analysis. I use my computer to help me with these numbers and calculations and lately, it’s listing a lot of health care companies with very good potential. Several factors cause this phenomenon.

Last Thursday, in a financial story that you may have missed, Nasdaq OMX Group announced that it had created a new index. It’s called the Nasdaq OMX Government Relief Index and it is now trading under the symbol QGRI. The components of the index will be the companies that receive $1 billion or more under the Troubled Asset Relief Program (TARP) or any other government handout program. Creating and updating indexes like The Bailout Index (my term) is one way financial services companies make a living. But I think I’ll give The Bailout Index a pass

Take intuitions and hunches seriously, but don’t act on them right away.

From one perspective, the Cabot history is one of business.

Markets steadied this week as the political situation became clearer and prospects for Covid-19 vaccines becoming available in the first half of 2021 seem more promising. The Explorer portfolio performed well this week, with a couple of ideas breaking out to new highs.

The stock market rally is now more than two months old. The S&P 500 has rallied 35% since March 23 and is now just about 10% below the all-time high.