Navellier: Crème de la Crème
11/01/2002 12:00 am EST
Louis Navellieruses a proprietary grading system covering 5,000+ stocks. He says, "We cover quantitative criteria which measures institutional buying pressure. We also measure important fundamental variables, such as cash flow, return on equity, earnings revisions and surprise history, momentum, quality, and profit margin expansion. The crème de la crème go in our newsletters." Here is his market outlook from the Opening Ceremonies of The New York Money Show and the Top Five Buys for November from his Blue Chip Growth Letter.
"We’re obsessed with 'oasis-type' stocks that should continue to go up regardless of the rest of the market. This is really a wonderful time. It’s probably the best buying opportunity I will see in my lifetime. The large-cap stocks in our portfolio have averaged over 50% earnings growth over the last year, yet they are trading at just 18 times forecasted earnings. Those are phenomenal ratios.
"A variety of forces have converged to really help this market over the near term. The sharp rise in bond yields is causing a panic of people returning to the stock market. You don’t want to own bonds in a rising interest rate environment. This is an incredible catalyst for rising stock prices. We’re also now hitting the seasonably favorable period where people will be funding pensions and IRAs. That has me very excited. And the third year of the presidential election cycle (such as we will see in 2003) is also very strong historically, for obvious reasons. By the time the third year of a term rolls around, they start to focus on getting reelected. In the past, we have seen 80%+ rallies during these periods. That’s very, very bullish."
Each month in his Blue Chip Growth Letter, Louis Navellier narrows down his buy list to a select group of the Top Five Buy candidates. Here are his current Top Five Buys for November:
"1) Last month, I upgraded Dell Computer (
2) Lennar (
3) Last quarter, I was concerned about Progressive (
4) I'm putting UnitedHealth Group (
5) I often say that only 15% of all stocks will lead the market higher. I think WellPoint Health (
Special Notice: Investors can now check the health of their personal portfolio holdings using Louis Navellier’s stock grading system. It is available free at PortfolioGrader.com, and it will provide you with ratings of A through F on a variety of fundamental and quantitative variables covering over 5,000 stocks.
Interest rates. Real estate. Financial stocks. High-yielding dividend-payers. Those are some of the ...