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

Tesla Motors

If Tesla ever begins to cut back on development and innovation costs, earnings will soar.

Alibaba

China seems to be raising up its very own version of Amazon in Alibaba (BABA.

Facebook

Roy Ward uses the PEG ratio to determine if the stock is undervalued or overvalued.

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