雅虎香港財經 12 Thrilling Stocks to Buy According to Louis Navellier
In this article, we will look at 12 thrilling stocks to buy according to Louis Navellier. If you want to explore similar stocks, you can also take a look at 5 Thrilling Stocks to Buy According to Louis Navellier.
Louis Navellier is a renowned financial analyst, author, and financial advisor, best known for his expertise in stock picking and portfolio management. He is the founder and CIO of Navellier & Associates, a Nevada-based investment management firm. As of December 31, 2022, Louis Navellier manages over $490.7 million in 13F securities through his hedge fund.
Louis Navellier is a pioneer in quantitative analysis, a discipline that uses mathematical models and algorithms to identify profitable investment opportunities in the stock market. Navellier's investment strategy is based on a rigorous, data-driven approach based on quantitative analysis, fundamental analysis, and optimization.
Louis Navellier Talks About Some Stocks He Likes
On February 17, Louis Navellier appeared in an interview on CNBC International TV and briefly talked about some of his stock picks that he sees doing well in the current market environment. One of his favorite stocks is Ardmore Shipping Corporation (NYSE:ASC), an oil & gas storage & transportation company. Mr. Navellier likes Ardmore Shipping Corporation (NYSE:ASC) and generally petroleum shipping stocks because of favorable oil export trends from the U.S. and Russia. As of December 31, Navellier & Associates has a position worth $1.99 million in Ardmore Shipping Corporation (NYSE:ASC).
Another stock Louis Navellier is bullish on is Cal-Maine Foods, Inc. (NASDAQ:CALM), one of the largest egg producers in the United States. Louis Navellier likes this stock because egg prices have risen significantly in the U.S. over 2022, roughly 70% according to CNBC. Louis Navellier sees Cal-Maine Foods, Inc. (NASDAQ:CALM) profiting from higher egg prices due to the company's size, scale, and market position. In the fourth quarter of 2022, Louis Navellier increased his hedge fund's exposure to Cal-Maine Foods, Inc. (NASDAQ:CALM) by 14% and has a position worth $1.93 million in the company.
Finally, Louis Navellier likes Lamb Weston Holdings, Inc. (NYSE:LW), a major American food processing company and one of the largest producers of frozen potato products. Louis Navellier is bullish on Lamb Weston Holdings, Inc. (NYSE:LW) due to its market position and noted that the company is well-positioned to profit from an ongoing potato shortage and higher potato prices. In the fourth quarter of 2022, Navellier & Associates initiated a position in Lamb Weston Holdings, Inc. (NYSE:LW). The fund's stake in the company is valued at $3.69 million.
Louis Navellier Weighs In On The Jobs Report and SVB Collapse
On March 10, the U.S. Bureau of Labor Statistics released the jobs report for February 2023 which showed that the U.S. added 311,000 jobs in February, down from the revised 504,000 jobs in January 2023, but still above economists' estimates of 205,000. The unemployment rate rose to 3.6%, up from 3.4% in January 2023. Another major event that sent stocks crashing on Friday, was the collapse of the Silicon Valley Bank. On March 10, Reuters reported that a California regulator shut down SVB after regulators discovered the bank had insufficient liquidity and is insolvent. On March 10, the S&P 500 lost 1.45%, the Nasdaq went down by 1.76%, and the Dow fell by 1.07%.
On March 10, 2023, Louis Navellier shared his insights on both of these events on a podcast uploaded on his firm's website. Mr. Navellier noted that though job creation in America is still strong, the unemployment rate is going up. He sees one of two possibilities for this scenario: "either the workforce is exploding in size, or the government is messing with the seasonal adjustments". Louis Navellier noted that the U.S. government overstated economic statistics in the jobs report for January 2023, as well as for retail sales for the month. Here are some comments from Louis Navellier about the SVB collapse, the Fed, and what he thinks the Fed will do at the next FOMC meeting:
"Here's what's really going on. The Fed's in charge of the banking system and it's not good to have a run on any bank, because it kind of taints the neighborhood. So even though we don't recommend financial stocks generally, the financial sector is really a mess right now. Because what's happened is, every bank that had treasury securities, watched the value of their collateral drop as yields went higher. Now they can invest it on the right part of the yield curve, maybe lose less, but something is going on. The Fed's in charge of the banking system, so they are probably only going to raise rates 25 basis points on March 22nd. The reason I know that is because market rates are collapsing. So today, as I talk to you, the 10-year bond yield is 3.73 (%), and it was over 4% not that long ago, the real shocker is the 2-year yield which was over 5%, is now 4.64 (%). So that's a big big drop in rates, whether we look at the 2-year, the 10-year, the Fed doesn't fight market rates. So the consensus is that interest rates might have spiked earlier due to bogus economic data, payroll and retail sales being exaggerated in January. Now reality is coming home to roost, now people are finding out things aren't as strong as they wanted, and finally treasury yields are collapsing."
Louis Navellier thinks that the collapse of SVB is going to cause the Fed to not raise interest rates much higher and go ahead with a 25 basis point hike.
We have come up with a list of the 12 most thrilling and high-growth stocks to buy now according to Louis Navellier, which include CF Industries Holdings Inc. (NYSE:CF), NVIDIA Corporation (NASDAQ:NVDA), and ConocoPhillips (NYSE:COP). Let's now discuss these stocks, among others, in detail.
Louis Navellier of Navellier & Associates
Our Methodology
We sifted through Navellier & Associates' Q4 2022 13F portfolio and went through the fund's top 50 holdings. We narrowed down our selection to the 12 stocks that exhibited the highest year-over-year revenue growth over the past 3 years. We have ranked these stocks in ascending order of Navellier & Associates' stake in them.
12. Builders FirstSource, Inc. (NASDAQ:BLDR)
Number of Hedge Fund Holders: 52
Navellier & Associates' Stake Value: $3,314,135
3-year Revenue Growth: 46.15%
On February 28, Builders FirstSource, Inc. (NASDAQ:BLDR) posted strong earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $3.21 and outperformed EPS estimates by $0.90. The company's revenue for the quarter amounted to $4.36 billion and beat market consensus by $104.26 million.
Builders FirstSource, Inc. (NASDAQ:BLDR) is one of the most thrilling stocks to buy according to Louis Navellier. The company has a 3-year average revenue growth rate of 46.15%. For fiscal 2022, the company grew its revenue by 14.24% year over year. As of December 31, Navellier & Associates has a position worth $3.3 million in the company.
At the end of Q4 2022, 52 hedge funds held stakes in Builders FirstSource, Inc. (NASDAQ:BLDR) worth $1.11 billion. This is compared to 49 hedge funds in the previous quarter with stakes worth $1.17 billion.
Here is what Black Bear Value Partners had to say about Builders FirstSource, Inc. (NYSE:BLDR) in its Q4 2022 investor letter:
“Builders FirstSource, Inc. (NYSE:BLDR) is a manufacturer and supplier of building materials with a focus on residential construction. Historically this business was cyclical with minimal pricing power as the primary products sold were lumber and other non-value-add housing materials. Since the GFC, BLDR has focused on growing their value-add business that is now 40%+ of the topline. BLDR can pre-assemble components such as a roof truss and deliver it to the homesite. This allows homebuilders (their end-users) to shorten their construction time and have higher returns on capital. The company has modest leverage and has been using their abundant free-cash-flow to buy in over 30% of the stock in the last 18 months.
While mortgage rates are higher, they are not unusual versus history. The low rates of the last 5-10 years are the outlier. We have a structural shortage of housing in the USA. With existing homeowners locked into low rate mortgages, the aspiring homeowner may increasingly need to find a home from a homebuilder. The next 6-12 months could be rocky as people adjust to the increase in pricing and rates. Eventually the housing market should adjust to the new normal (or rates could go down). We do have a large credit short which benefits if rates continue to go up.
Normalized free-cash-flow per share looks to be in the range of $8-$12 per year. At year end pricing of ~$65 that implies a free-cash-flow yield of 12-18%. If we owned this business privately and someone offered us a teens annual cash-flow yield, we would be jumping at it! The pessimism surrounding housing, interest rates and recession fears provides some of the reasons why this opportunity exists.”
In addition to Builders FirstSource, Inc. (NASDAQ:BLDR), other top stocks held by Navellier & Associates that have exhibited high revenue growth over the past 3 years include CF Industries Holdings Inc. (NYSE:CF), NVIDIA Corporation (NASDAQ:NVDA), and ConocoPhillips (NYSE:COP).
11. Steel Dynamics, Inc. (NASDAQ:STLD)
Number of Hedge Fund Holders: 32
Navellier & Associates' Stake Value: $3,395,075
3-year Revenue Growth: 28.61%
Steel Dynamics, Inc. (NASDAQ:STLD) is a leading American steel producer and metal recycler. The company has three business divisions: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. As of March 10, the stock has returned 26.47% to investors year to date.
Steel Dynamics, Inc. (NASDAQ:STLD) grew its annual revenue by 20.92% year over year in fiscal 2022. The company has a 3-year revenue growth rate of 28.61% and is one of the most high-growth stock picks of Louis Navellier. As of December 31, Navellier & Associates has a stake worth $3.39 million in the company.
At the close of Q4 2022, 32 hedge funds were long Steel Dynamics, Inc. (NASDAQ:STLD) and disclosed collective positions worth $283.5 million in the company. This is compared to 28 positions in the previous quarter with stakes worth $228.2 million. The hedge fund sentiment for the stock is positive.
10. Cenovus Energy Inc. (NYSE:CVE)
Number of Hedge Fund Holders: 46
Navellier & Associates' Stake Value: $3,467,674
3-year Revenue Growth: 48.22%
Cenovus Energy Inc. (NYSE:CVE) is a leading global integrated oil and gas company, involved in the production, refinement, and transportation of crude oil and natural gas. As of December 31, Navellier & Associates' stake in the company is valued at $3.46 million. The investment covers 0.7% of Louis Navellier's 13F portfolio.
On average, Cenovus Energy Inc. (NYSE:CVE) has grown its revenue by 48.22% year-over-year over the past 3 years. The company reportedly grew its revenue by 44.31% year over year in fiscal 2022. Cenovus Energy Inc. (NYSE:CVE) is one of Louis Navellier's most thrilling stock picks and, as of March 10, the stock has returned 22.01% to investors over the past 12 months.
Cenovus Energy Inc. (NYSE:CVE) was held by 46 hedge funds at the end of Q4 2022. These funds held collective positions worth $2.31 billion in the company, up from $2.16 billion in the previous quarter with 47 hedge funds.
Here is what L1 Capital had to say about Cenovus Energy Inc. (NYSE:CVE) in its Q3 2022 investor letter:
“Cenovus Energy (Long -13%) shares declined over the quarter due to an ~18% decline in oil prices on increasing fears of a U.S recession and a slowdown in global growth. Given the long-life nature of its oil sand assets and its low cost of production, we estimate Cenovus is free cash flow break-even at an oil price of ~US$40/bbl. Despite the recent fall, oil prices remain more than double this break-even point, implying considerable free cash flow generation potential for the company at current levels, with Cenovus currently trading on a consensus FY22 free cash flow yield of around 20%. There are also additional value realisation catalysts with the company continuing to progress the de-gearing of its balance sheet via organic cash generation and asset sales.”
9. AMN Healthcare Services, Inc. (NYSE:AHS)
Number of Hedge Fund Holders: 35
Navellier & Associates' Stake Value: $4,384,450
3-year Revenue Growth: 33.13%
AMN Healthcare Services, Inc. (NYSE:AHS) is a leading American healthcare staffing company. The company provides healthcare staffing solutions to hospitals in the United States. AMN Healthcare Services, Inc. (NYSE:AHS) has a 3-year revenue growth rate of 33.13% and is one of the top high growth stocks to buy according to Louis Navellier. The investment covers 0.89% of Louis Navellier's 13F portfolio.
On February 16, AMN Healthcare Services, Inc. (NYSE:AHS) posted earnings for the fourth quarter of fiscal 2022. The company reported a revenue of $1.13 billion and beat expectations by $58.18 million. The company reported an EPS of $2.48 and outperformed EPS estimates by $0.29.
At the end of the fourth quarter of 2022, 35 hedge funds were bullish on AMN Healthcare Services, Inc. (NYSE:AHS) and disclosed collective stakes worth $402.2 million in the company. As of December 31, Navellier & Associates' stake in the company is valued at $4.38 million.
Here is what Diamond Hill Capital had to say about AMN Healthcare Services, Inc. (NYSE:AMN) in its Q3 2022 investor letter:
“New positions initiated in Q3 included Ciena Corporation (long), AMN Healthcare Services, Inc.(NYSE:AMN) (short), CBIZ Inc (short), Asana (short) and Palomar (short). AMN Healthcare Services provides workforce solutions and staffing services at healthcare facilities. An unstable healthcare employment environment is driving pricing and volume growth for contract labor, which we believe is unsustainable.”
8. Essential Utilities, Inc. (NYSE:WTRG)
Number of Hedge Fund Holders: 19
Navellier & Associates' Stake Value: $4,413,879
3-year Revenue Growth: 37.01%
Essential Utilities, Inc. (NYSE:WTRG) is an American water utility company that provides water and wastewater services in the United States. The company has grown its annual revenue by 37.01% on average over the past 3 years. For fiscal 2022, Essential Utilities, Inc. (NYSE:WTRG) grew its annual revenue by 21.82% year over year. The stock is placed eighth among Louis Navellier's top high growth stock picks.
Essential Utilities, Inc. (NYSE:WTRG) was spotted on 19 investors' portfolios at the end of Q4 2022. These funds held collective stakes worth $459.4 million in the company, up from $427.3 million in the previous quarter with 29 positions. As of December 31, Navellier & Associates has a position worth $4.41 million in Essential Utilities, Inc. (NYSE:WTRG).
7. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 63
Navellier & Associates' Stake Value: $5,953,916
3-year Revenue Growth: 55.13%
On February 7, Enphase Energy, Inc. (NASDAQ:ENPH) released earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $1.51 and outperformed EPS estimates by $0.25. The company's revenue for the quarter amounted to $724.65 million, up 75.58% year over year and ahead of Wall Street consensus by $21.62 million. Enphase Energy, Inc. (NASDAQ:ENPH) has a 3-year revenue growth rate of 55.13%. The company grew its revenue by 68.65% year over year in fiscal 2022.
As of December 31, Navellier & Associates holds a position worth $5.9 million in Enphase Energy, Inc. (NASDAQ:ENPH). The stock is one of the fund's top holdings and accounts for 1.21% of Louis Navellier's 13F portfolio. Enphase Energy, Inc. (NASDAQ:ENPH) is one of the most thrilling stocks to buy now according to Louis Navelleir.
At the close of Q4 2022, 63 hedge funds were eager on Enphase Energy, Inc. (NASDAQ:ENPH) and held collective positions worth $2.21 billion in the company. This is compared to 59 hedge funds in the previous quarter with stakes worth $2.20 billion. The hedge fund sentiment for the stock is positive.
Here is what ClearBridge Investments had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its Q3 2022 investor letter:
“In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.”
6. Coterra Energy Inc. (NYSE:CTRA)
Number of Hedge Fund Holders: 33
Navellier & Associates' Stake Value: $6,121,075
3-year Revenue Growth: 65.82%
Coterra Energy Inc. (NYSE:CTRA) is a leading American oil and gas company involved in development, exploration and production of oil, natural gas, and natural gas liquids. As of March 10, Coterra Energy Inc. (NYSE:CTRA) has gained 5.95% year to date. On average, the company has grown its revenue by 65.82% year over year, over the past 3 years. Coterra Energy Inc. (NYSE:CTRA) is placed sixth among Louis Navellier's most thrilling stocks to buy now.
At the end of the fourth quarter of 2022, Coterra Energy Inc. (NYSE:CTRA) was spotted on 33 hedge funds' portfolios that held collective stakes worth $367.2 million in the company. As of December 31, Navellier & Associates' stake in the company is valued at $6.12 million.
Here is what Diamond Hill Capital had to say about Coterra Energy Inc. (NYSE:CTRA) in its Q4 2022 investor letter:
“Other bottom contributors included energy exploration and production company Coterra Energy Inc. (NYSE:CTRA) and West Coast-focused office and apartment REIT Douglas Emmett (DEI). Investors became concerned about CTRA’s outlook following the company’s 32% – 36% downward revision to its reserve numbers — purportedly in line with SEC proved reserve reporting rules. With shares trading below our estimate of intrinsic value, we are closely monitoring the situation and are prepared to pivot accordingly as more data become available.”
Some of Louis Navellier's top stock picks include CF Industries Holdings Inc. (NYSE:CF), NVIDIA Corporation (NASDAQ:NVDA), and ConocoPhillips (NYSE:COP).
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Disclosure: None. 12 Thrilling Stocks to Buy According to Louis Navellier is originally published on Insider Monkey.
