Ten Hot Growth Stocks to Buy Now
02/08/2008 12:00 am EST
Famed growth investor and editor Louis Navellier shared his bullish market and economic outlook, asserting that Wall Street money is moving to growth stocks…
Navellier told investors he began aggressively buying into the market in late January, although he said it may still be a little early for more conservative investors, as he also believes the market will retest its recent lows before moving higher.
Positive factors he sees include: 1) the reduction in the net stock supply caused by private equity offerings, fewer initial public offerings, and corporate stock buybacks; 2) high insider buying; 3) the increase in dividends; 4) shockingly low price-earnings ratios; and 5) growth in earnings in most industries (except financials).
Navellier told attendees to expect continued rate cuts by the Fed, additional write-downs from the financials for the coming five-to-six quarters, and more price declines in the housing markets.
He sees a return to growth stocks over the next few years, with value shares having run their course for now.
Navellier also told investors that his recommendations are a direct result of the stock analysis and rating system that he developed a couple of decades ago. The system has two components: 70% quantitative, gauging institutional buying pressure; and 30% fundamental, which consists of an analysis of factors like sales growth, margin expansion, earnings stability, cash flow, earnings momentum, and earnings surprises.
His system includes letter grade ratings on more than 5,000 stocks, with A-rated stocks considered strong buys; B-rated, buys, and C-rated, holds.
Some of his favorite stocks and sectors include healthcare—Express Scripts (Nasdaq: ESRX); solar energy—First Solar (Nasdaq: FSLR); agricultural—Monsanto (Nyse: MON) and Mosaic Company (Nyse: MOS), and oil services—National Oilwell Varco (Nyse: NOV).