Search

The second stock in our series on the best forever stocks is Axon Enterprises, a maker of stun guns with an exciting new product spurring growth.

Walgreen and General Motors should benefit from growing interest in electric vehicles.

Microsoft doesn’t make headlines much anymore. But MSFT stock has been rock solid. Lately, it’s been much better than that.

Buying call options in beaten down stocks is one way to play an eventual rebound. Here’s how I’d approach it with AMZN & AAPL.

The FANG stocks have had a really rough week. What does it mean for the market as earnings season rolls on? Here’s what recent history tells us.

With a 42% return over the last six months, Chunghwa Telecom is this year’s best-performing Dividend Digest Top Pick so far (based on...

Cabot ETF Strategist chief analyst Kate Stalter will explain why it’s important to have ETFs in your portfolio, and elaborate on the different kinds of ETFs that make sense. Kate will explain how ETFs are a way to efficiently diversify your portfolio without much downside risk - and to make it crash-proof. Finally, Kate will recommend 3 ETFs that you should buy TODAY!

After a three-week rally, stocks hit resistance at logical levels, with the indexes backing off … though they still remain nicely above their January lows. It’s possible we’re starting a re-test phase, with the major indexes and many stocks set to attack their January lows. But, really, we’re less concerned with gaming out the daily action than with sticking to the overall evidence—until proven otherwise, the trends of the major indexes, of growth-oriented funds and of most stocks is pointed down, so we advise remaining generally defensive and patient as we allow more stocks to build bottoms and form legitimate setups.



That doesn’t mean, however, that the wheat isn’t starting to separate from the chaff among individual stocks. This week’s list has a bunch of stocks that have shown some great-volume accumulation during the past two or three weeks, though our Top Pick is a solid long-term setup ahead of earnings.

As we head into 2020, emerging markets are at the top of the Cabot Global Stocks Explorer menu after developing a nice uptrend in the fourth quarter of 2019. In addition, they are cheap - trading at a substantial discount to U.S. markets on a valuation basis. Today’s new idea is at the sweet spot of several powerful trends in China and has delivered steady and substantial profits to shareholders over the past five years.

After two months of falling share prices, are we officially in a bear market? I like to let the charts provide an answer. Here’s what they’re telling me.

Has the market exhausted itself, or does this bull have further to run? That’s what I asked here last week, and I offered arguments for more upside from two of our contributors. If you missed the issue, you can read the whole article here. Many of our readers wrote back...

The market continues to act well following last week’s whipsaw buy signal. There are still obvious resistance levels for the major indexes to deal with, but all three of our market timing indicators are bullish and more stocks are acting well. We’ll stand pat tonight with our eight stocks and 20% cash position in the Model Portfolio, though further strength (especially among individual stocks) would prompt us to put our remaining cash to work.

Remain bullish. We’ve seen some wiggles from individual stocks during the past two weeks, and more are likely as earnings season progresses. But the major trends of the market and most stocks are up, so we advise you to remain heavily invested. There are no changes in the Model Portfolio tonight.

Many enlightening, interesting and even touching articles have been written since Steve Jobs’ death last week. It’s clear he had an immense positive impact on our world, and I don’t think I have anything to add to what’s been said. So why do I bring it up? One of the most...

Staying flexible is a key component of successful investing.

With our Cabot Tides negative, we’ve moved to a half-in, half-out stance—we’ve sold three stocks during the past week (one before Brexit, two after), which leaves us with five stocks and a cash position near 50%. The powerful bounce of the past two days is very encouraging, but the odds favor some backing and filling at the very least (if not further weakness) before a sustained uptrend gets underway. We have no changes in the Model Portfolio tonight.

Current Market Outlook


The ping pong environment we referenced on this page last Monday continued last week, with growth stocks bouncing back from a ragged prior week, while some of the recently-strong cyclical groups took a breather. We expect more under-the-surface volatility going forward, mostly due to earnings season, which is now moving ahead at a breakneck pace; so far, there have been a few potholes, but many stocks have reacted well to their reports. All in all, we remain mostly bullish, but two pieces of advice: First, don’t forget to book some partial profits when you have them, and second, be sure to keep your feet on the ground and look for advantageous entry points. We’ll keep our Market Monitor where it is as we see how leaders react to earnings.

This week’s list is heavier on emerging market and retail stocks than usual, which could be a clue to future leadership. Our Top Pick is ServiceNow (NOW), a blue chip-ish cloud software firm that decisively broke out of a tight launching pad on earnings next week. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
GDS Holdings Limited (GDS)	80.15	37-39	34-35
Huazhu Group (HTHT)	30.89	41.5-43.5	37.5-39
Ollie’s Bargain Outlet (OLLI)	103.94	93.5-97	85.5-87.5
Pilgrims Pride (PPC)	25.52	25-26.5	22-23
Sea Limited (SE)	132.86	24.5-26	21.5-22.5
ServiceNow (NOW)	341.86	263-273	237-244
Sinclair Broadcasting (SBGI)	54.14	42-44	39-40.5
Ulta Beauty (ULTA)	331.95	345-355	320-325
VeriSign (VRSN)	190.71	191-196	178-181
Workday (WDAY)	194.88	200-206	185-188

The intermediate-term negative signal I mentioned last week remains in effect, telling us some caution is appropriate, whether it be holding cash or leaning toward lower-risk stocks. But overall, I can’t say the danger is high yet—and because I sold our three highest-risk stocks last week, this week I am selling none.
As for new buying, this week I’m going with a high-potential fast-growth stock that came public last year and that was recently hitting new highs.


You may not be a user (I’m not) but you’ll almost certainly know the name.


Full details in the issue.

Global citizens are beginning to witness a relatively unprecedented situation in which a communicable virus that originated in China is now traveling around the globe.