A Trio from Navellier

08/01/2003 12:00 am EST

Focus:

Louis Navellier

Editor, Blue Chip Growth and Emerging Growth

"In this environment you want to be diversified and balanced," says Louis Navellier, editor of The Blue Chip Growth Letter. "Please, please be diversified. That's your best defense against volatility. Buy different stocks in different industries. You want to have some medical stocks and tech stocks. You want to have stocks with good earnings." Here are three new additions to his buy list.

"International Game Technology (IGT NYSE) is very strong. It has recently pulled back just a tad, making it a great buy. Based in my own backyard of Reno, International Game makes the majority of slot machines that are used in casinos. It is benefiting from the surge in gambling throughout the US. The company came out with phenomenal earnings. In mid-July, the company reported record earnings of 30 cents a share, three cents better than estimates. I was also pleased to see that the stock split 4-for-1. Gaming is a very tough business. Yet IGT always makes money. So IGT is the best way to play the gambling boom in the US. Buy below $31.

"Another stock that I'm adding to the Buy List is Guidant (GDT NYSE), which competes with Boston Scientific, Johnson & Johnson, and St. Jude Medical in the medical device business, such as stents and pacemakers. The company recently reported earnings of 62 cents a share, six cents above estimates. Guidant also revised its full-year forecast much higher, about 30 cents above previous expectations. The medical device maker has had steady earnings growth and even faster earnings growth due to robust profit-margin expansion. The stock is a buy below $55.

"Another new addition to the Buy List is Yahoo (YHOO NASDAQ), which has posted strong sales and earnings growth. The company is benefiting from the steady expansion of broadband, which is boosting traffic on the Internet. The stock has recently pulled back, so this is a great opportunity for investors to buy this very powerful stock at a substantial discount. Granted, this stock makes the buy list a little spicy. However, the spicy stocks with steady earnings growth have attracted tremendous institutional buying pressure and have been some of Wall Street's best performers. YHOO is a buy below $35."

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