The dollar was weak until a couple months ago and now it’s at a high and so when the dollar gets strong, it hurts the multinationals and you’ve got to be more domestic and so there’s a little seismic shift, explains Louis Navellier, founder and chairman of Navellier & Associates. Here are excerpts from a panel discussion at the Las Vegas MoneyShow covering mid-term election stock picks.
We have two dividend growth stocks and then we have three growth stocks. Just so you know where these stocks came from, we rank stocks on an A, B, C, D, and F basis. Our "Dividend Grader" goes for stocks that double their dividends every six or seven years.
We have thousands of stocks in our database and, today, I only have 14 AA stocks and two of my favorite are Boeing (BA) and Valero (VLO).
Boeing has a dividend yield of 2%, sales are forecast to be up 6%, earnings are forecasted to be up 28.4%. Obviously, their backlog for their airplanes are incredible. Also benefit from the defense business so it’s a solid stock.
Valero is pretty simple. The spread between WTI and Light Sweet Crude, the Brent Crude, is at the highest level in three years. It’s almost $8 a barrel. The wider the spreads get, the more money the refineries make. It’s as simple as that.
Valero's dividend yield is 2.76%, sales are forecast to be up 19.3%, earnings are forecast to be up 82.1%. You get to have your cake and eat it, too, with Valero. You get a nice yield, you get stunning sales and earnings growth. We’re going to watch those crack spreads, the spreads between the intermediate to sweet crude, and we’ll ride this as long as we can.
Now, I’m on the growth stocks. Abiomed (ABMD) makes these heart pumps so when our heart is failing, they have a little heart pump that keeps us going. A lot of people like it. It’s a supplemental pump and their sales are forecast to be up 30.6%. We have positive analyst revisions so I’m very, very pleased with ABMD.
NVIDIA (NVDA) is my largest holding. It has to go up because I own so much. We are up 470% or so in it but they have beaten 11 quarters in a row. Their sales are forecast to be up 49.7%, earnings are forecast to be up 83.5%, positive analyst revisions.
NVIDIA did announce in the latest quarterly earnings they won’t make as much from the cryptocurrency craze because I guess they used their chips to try to make a bitcoin or something but most of the business comes from graphic chips, energy efficient chips. They dominate everything, computers, cellphones, tablets, gaming, and then, of course, the artificial intelligence chips that are driving our cars and things.
Obviously, that’s going to be standard equipment like lane avoidance and all that stuff, so it’s coming, they’re winning, and it’s as simple as that.
IPG Photonics (IPGP) is a chip company. They make optical components, optical chips, optical connectors. Obviously, due to cloud computing, the speed of light is a big deal to speed up the server farms in all our devices. Even when you buy audio equipment now, everything is optical.
If you have a receiver for your fancy TV, everything is going to be optical. As we network more and more, you have to have optical so IPGP is our pick there. Their sales are forecast to be up 11.7%, earnings should be up 16.8%, positive analyst revisions.
