As we approach the last two months of the calendar year, the market has recovered from its twin August and September panics, and most stocks have rallied nicely. But the long-term trend has not quite turned up. The highs of April-July still lurk overhead. Furthermore, in recent days, I’ve seen some worrisome signs in the growing numbers of stocks hitting new lows, even on days that the broad market is up.
This behavior tells me that it’s growing increasingly likely that the number of laggards not participating in the uptrend will continue to grow. At the same time, the odds are that the stocks leading today will continue to lead. Using that reasoning, I might as well recommend Alphabet (GOOGL), Amazon (AMZN) or Microsoft (MSFT). But there are risks that any or all of those stocks will top out as 2016 arrives (or sooner), and I’ve always favored buying less popular stocks, simply because they have more upside potential.
And that brings us to today’s recommendation, a stock that came public last year and that is still unknown to most investors. The stock was originally recommended by Mike Cintolo in Cabot Growth Investor.
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.