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.