A Less-Crowded Recommendation

Last month I mentioned the fact that growth stocks were leading the market, and that your best prospects for successful investing were the leading stocks of the day, including Alphabet (GOOGL), Amazon (AMZN) or Microsoft (MSFT). Since then, all three of those stocks have done well, and there’s a good chance they will continue to do well through the rest of 2015. Investors like finishing the year with winners in their portfolios.

But the risk of investing in the most popular stocks remains; at some point, those stocks will become over-owned, and when the bull market ends, there will be a shortage of potential buyers to accommodate the sellers. That can end badly.

My preference is to invest in the less crowded sectors of the market, where there are still stocks that have been overlooked, and today’s selection is a perfect example.

The stock was originally recommended by Mike Cintolo in Cabot Top Ten Trader three months ago, and his readers are off to a good start, up 26% thanks to a big acquisition announcement.

Still, the long-term growth prospects remain enticing, and the company remains unknown to most investors. Thus potential buyers outnumber potential sellers.

This is an excerpt from Cabot Stock of the Month, which features the best stock to buy right now. Each recommendation is hand-selected from those recently researched and recommended by Cabot analysts. Editor Timothy Lutts explains why it’s the single best stock to buy in the current market environment. This publication is a great introduction to Cabot’s services.

Subscriber reviews of Cabot Stock of the Month.

Timothy Lutts can be found on Google Plus.

Stock Picks


This stock could rise 50% before becoming fairly valued.

This hot technology company is growing like a weed, thanks to products that speed up cloud communications.

This stock is somewhat well known, but far from well loved.

Cabot Wealth Advisory

How to Find Great Growth Stocks in a Scary Market

By Paul Goodwin on October 21, 2016

Even in today’s scary market, there are great growth stocks out there. Here’s how to find them—and how to avoid the kind of losses that can haunt your portfolio.Read More >

Buy This Small-Cap Tech Stock as the Nasdaq Thrives

By Tyler Laundon on October 20, 2016

Technology stocks are thriving, as the Nasdaq has been outpacing the S&P 500 and the Dow for months. And one small-cap tech stock in particular is outperforming the industry’s big boys. Read More >

Is Allergan (AGN) Still an Undervalued Stock?

By Crista Huff on October 18, 2016

Five months ago, Allergan (AGN) was an undervalued stock with tons of growth potential. It's up 21% since then, but still has plenty of upside. Here's why.Read More >