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In the February Issue of Cabot Early Opportunities we take a quick look at the big-picture events influencing the current market then dive into five names that keep jumping onto my radar.
This month we take another spin with two names that served us well in 2021 and add a software company that has the potential to be a massive player in the digital economy. We also take half a stake in a watch list name and refresh that list with an exciting IoT company.


Enjoy!

In the October Issue of Cabot Early Opportunities, we go deeper down the software rabbit hole, jump into a new grocery chain stock I suspect you’ve never heard of, dabble with a hot AI semiconductor stock and consider the potential of an EV stock that’s exploded on news of a big DOE loan.

As always, there should be something for everyone!

Compared to the prior three weeks when the major indexes imploded, last week was a breath of fresh air. As we like to say, up is good, so the action is certainly a plus—and, more important, we still see a good number of stocks in multi-month setups. All that said, much of the recent buying has been from the off-the-bottom crowd, and at best, the intermediate-term trend of the overall market is sideways while the longer-term trend remains down. We’re certainly OK holding onto our resilient names, but we continue to need to see more before we advise becoming aggressive. We’re leaving our Market Monitor at a level 4.


This week’s list has a few more turnaround and steady Eddie-type names despite the market’s rally. Our Top Pick is a cheap name near the top of a huge launching pad that also has a decent long-term cookie-cutter story, too.

Between the late-July/early-August market plunge and the relatively sharp post-Labor Day selloff, more than a few weak hands were likely kicked out of their positions. That paved the way for the past two weeks, which have been very encouraging, with the major indexes certainly improving and with many of those same leaders acting well, including a bunch that moved to new high ground. It’s all to the good, though a lot of the same flies in the ointment that we’ve written about are still out there, too. There’s definitely more good than bad out there, but we continue to pick our spots. We’ll leave our Market Monitor at a level 7 today.

This week’s list has something for everyone, from high-tech to infrastructure to stocks leveraged to asset prices. Our Top Pick is a potential liquid leader that, after a few months of choppy action, looks to have finally broken out on the upside.

For now our positions remain in great shape, and this week we are adding a stock that we successfully traded in March, and has shown no signs of pulling back after an earnings blowout last week.

This beaten-down global logistics company was instrumental in redefining trade for a new era. So, with trade dominating the headlines, is the stock a buy?

In the face of extreme market volatility, one trader is buying hundreds of millions of dollars in LEAP calls and placing a massively bullish bet on the years ahead.

Quick note: Because next Monday is Memorial Day, our next issue of Top Ten will be published Tuesday after the close, May 28.

The market’s good-looking rebound continued last week, with big-cap indexes notching new highs and most other indexes close to doing so. Granted, a lot of individual stocks are still battling with resistance from their prior highs in February/March and many growth names are set to report earnings during the next couple of weeks. Throw in the fact that sentiment has definitely gotten a bit complacent again and you want to pick your stocks and entry points carefully. Still, right now the intermediate-term trends are up for the market’s major indexes and most leading and potential leading stocks. We’ll keep our Market Monitor at a level 8.

This week’s list has a lot of enticing names, with some showing power and others set up nicely to break out if the bulls remain in control. Our Top Pick is a retail name that appears to be finally getting going after a long, tedious consolidation.

In selecting today’s stock, I looked for a quality stock with a strong and healthy technical pattern that was presenting a decent buy point. Oddly, it’s a bricks-and-mortar retailer, a category with an abundance of losers these days. But it’s a winner, and I think you’ll like it.

Emerging markets ETFs, the strategy that doesn’t really deliver results. I’m going to make a blunt statement.

It’s hard to put a positive spin on the market’s action over the last week. The bottom line is investor sentiment is the pits and most stocks have been sliding. We owe Microsoft (MSFT) a debt of gratitude for stepping up with a good report and showing that things aren’t actually as bad in tech land as everybody seems to think!

The selling pressures of the past two weeks continued last week as traders grappled with tariff concerns, a possibly slowing economy, and growth stocks again falling dramatically. By week’s end the S&P 500 had lost 3.1%, the Dow had fallen 2.4%, and the Nasdaq had dropped another 3.5%. The selling only worsened on Monday, with all three indexes down more than 2%.

The stock market is resuming its downward slump, creating a drag on investor enthusiasm for buying shares. In many ways, this effect is no different from how consumers approach the purchase of any other item – if you are reasonably confident that the truck/house/trinket/whatever you are wanting to buy will be cheaper in a few weeks, you will wait to make your purchase.

It’s Fed rate-cut week. Will Jerome Powell and company come out of the gates quickly, slashing rates by a full 50 basis points, as the majority of traders now expect? Or will they start with a more sober, 25-basis point cut … which is what I expect? In the long run, it probably doesn’t matter much. But in the current market, the answer will likely determine whether last week’s bounce-back has legs – or if another October bottom is in order.

In the meantime, today we add a stock that has nothing to do with interest rates: a fast-growing water company. It’s a recent recommendation from Tyler Laundon in his Cabot Early Opportunities advisory.

Details inside.

Welcome to our 2026 TOP PICKS issue! This is one of my favorite issues each year as our Cabot analysts take a deep look at their portfolios and share their top stock ideas for 2026.

You’ll find a well-diversified selection of stocks—growth, value, dividend payers, metals, technology, healthcare, retail, manufacturing, and much more!

I hope you’ll find one or more to your liking!

Willdan Group (WLDN) Delivers Q3

Growth investing and value investing are two primary investment strategies. But it’s important to know exactly how each strategy works.

The best mid-cap stocks to buy now share similar traits: good business models and reliable sales and earnings growth. Here are three that come to mind.