Time to Loosen Purse Strings

After a punishing first six weeks to the year, the market finally got off its knees during the past few trading days. In fact, we’ve seen some intermediate-term measures used in other Cabot advisories (Cabot Top Ten Trader and Cabot Emerging Markets Investor) turn positive! And that tells us to loosen the purse strings a little bit.

However, while the ray of sunshine is encouraging, the market still has plenty of headwinds—the longer-term trend of the indexes and most individual stocks remains down (or at best, sideways), which means any rally from here is likely to hit its share of potholes (like the one we saw today). As usual, we’ll just take it as it comes, but the intermediate-term buy signals are a good first indication that the selling pressures have exhausted themselves.

With all of that in mind, we went hunting for a stock with a great growth story that’s shown excellent power lately … but we also wanted a well-situated firm (and a well-sponsored stock) that wasn’t going to get crushed should the economy or market wobble. This month’s recommendation (which first appeared in Cabot Top Ten Trader) fills the bill on all counts.

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 >