The Hidden Formula That Can Make You Rich

“I’ve got a problem,” I explained to my MBA advisor as we looked through the piles of data I had gathered for my final project.

“I think I just disproved my hypothesis.”

It was a difficult moment for me. My father was a stonemason, and I was the first person in my family to attend college.

So, I was extremely determined to make the most of my opportunity.

I wanted to get my degree, get a good job, and make my family proud.

And up until this point, everything was going exactly as planned.

I had sailed through undergraduate school in two-and-a-half years and enrolled directly into an MBA in finance right after I graduated.

Yet, here I was… with the finish line in sight… thinking that two years of hard work was about to be flushed down the drain.

You see, this was back in the late 70s, and there was a theory floating around in the academic circles called, “The Efficient Market Hypothesis.”

It basically stated that because of the way information flows in the market.

It’s impossible to consistently beat the market over the long term.

Therefore, the best strategy is to just buy the major indices and hold them until you’re ready to retire.

And I had designed an experiment to prove that the efficient market hypothesis was true.

The only problem was, my data was saying otherwise.

I had used my access to a few mainframe computers at Wells Fargo and Stanford (remember this was back in the days before PCs) to analyze years of data on thousands of stocks…

And I discovered, contrary to the opinions of my professors, that the efficient market theory was false.

It was, in fact, possible to use computers to analyze vast amounts of information and find anomalies in the stock market data.

Little hidden formulas that can be used to find the stocks that are most likely to go up… with the least amount of risk.

When I looked at all this data, I came to a life-changing conclusion.

Computerized trading systems are the future of investing.

This one simple discovery would change my life forever.

Instead of heading to Wall Street, I decided to venture out on my own, to develop a system that could help me beat out even the professional traders and investors on Wall Street.

And it was the right call.

Because by the time I turned 30, I was a millionaire with a successful money management firm.

And I was helping my clients rake in returns that were the envy of every other firm on Wall Street.

Over the years, I’ve hired an army of researchers to help me perfect this system.

Which has helped my clients rake in hundreds of millions of dollars.

But over the last few years I’ve been working on an even bigger project.

Applying my proven system to a corner of the market where the gains can be even more explosive.

I call it the Accelerated Wealth System.

And it’s proving to be one of my most remarkable systems to date.

For example, we currently have open recommendations at 500% with an energy company… 755% with a digital company… and 231% with a sports retailer.

Over the next few days, I’m going to show you exactly how this system works.

I’m going to reveal how this system targets winners like…

  • A 612% gain on Santarus…
  • A 220% gain on Bitauto Holdings…
  • A 347% gain on America Movil…
  • A 457% gain on Holly Corp…
  • A 477% gain in EMC Corp…
  • A 758% gain on Vipshop Holdings Limited (VIPS)…
  • And a 1,125% gain on Hansen Natural

I’ll explain in full detail during my special Accelerated Wealth Summit next Wednesday, May 19, at 4 p.m. ET. Please make sure to RSVP today to reserve your spot!

I look forward to seeing you there!

Sincerely,

Louis Navellier

The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Vishop Holdings Limited (VIPS)

The Power of a Great System

I’m excited to announce that I will be hosting a brand-new event next Wednesday, May 19, called the Accelerated Wealth Summit!

Many people in our office are already declaring this the “must see” event of the year…

That title originally went to a controversial video I released last year that has already been viewed nearly five million times.

The video, called “Warning from a One Percenter” was a wake-up call to Americans about the wealth gap in this country, and its real causes.

Now, at the Accelerated Wealth Summit, I’m going to do more than explain it – I’m going to tell you about the opportunities it presents.

And Americans have never needed this more than right now.

Just take a look at this chart…

There’s a lot going on in this chart, but the bottom line is that in 1989, the top 10% of Americans owned 67% of the country’s wealth. By 2016, that number had increased to 77%.

Meanwhile, the bottom 50% of Americans that owned a paltry 3% of America’s wealth in 1989, saw their share shrink to 1% by 2016.

Even the middle 40% saw their share of the wealth shrink from 30% in 1989 to 22% in 2016.

On one hand, America is a place of extraordinary wealth… a place where billionaires travel in private jets and buy $10 million condos with a week’s pay.

The system is working great for these people.

On the other hand, America is a land of extreme poverty and deeply unhappy people.

To these folks, the system is a disaster.

America is the land of “Haves” and “Have Nots.”

Some have absurd abundance.

Some have nothing.

And the rate at which things change in favor of the rich versus the poor is only speeding up, not slowing down.

My InvestorPlace colleagues and I call this phenomenon – the huge and rapidly growing divide caused by technological disruptions — the Techno-Chasm.

Soon, the Techno-Chasm will be so large that those on the wrong side won’t be able to make the jump… and they’ll be stuck on the wrong side for the rest of their lives.

On May 19, I’m going to explain how you can use my system to end up on the right side of the Techno-chasm.

I’ve spent the past 40 years perfecting my quantitative trading system.

This system helped me become a millionaire at 30… achieve the #1 ranking by the prestigious Hulbert Digest for my 20-year performance… and create a money management firm that at one point managed over $3 billion in assets.

My system has afforded me a life of luxury… including owning homes in both Palm Beach and Reno, a fleet of luxury cars, and a trust that’s big enough to take care of my family for generations to come.

Which is why I decided to set out on a different journey.

I decided to attack the wealth gap in America head on…and help as many people as I can end up on the right side of the Techno-chasm.

Which is why, on May 19, during this exclusive Accelerated Wealth Summit, I’m pulling back the curtains…

And revealing the details behind my most profitable strategy to date.

The system that helped me rack up gains like:

A 311% gain on Repligen Corporation (RGEN)…

A 457% gain on Holly Corp…

A 612% gain on Santarus…

A 751% gain on Vipshop Holdings Limited (VIPS)…

And a 1,125% gain on Hansen Naturals.

Remember, my Accelerated Wealth Summit will be held next Wednesday, May 19, at 4 p.m. ET. I will be putting it all together then, so make sure to reserve your spot now so you don’t miss out.

I hope to see you there.

Sincerely,

Louis Navellier

The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Repligen Corporation (RGEN), Vishop Holdings Limited (VIPS)

Why This Retail Stock Soared 50%

Wall Street clearly woke up on the wrong side of the bed this morning! The major indices sold off today, with the Dow leading the charge lower. Today was also a case of investors throwing the baby out with the bathwater, as fundamentally superior stocks were knocked down, too.

However, a short-term dip isn’t necessarily a bad thing. Good stocks bounce back like “fresh tennis balls,” so any dip in the market should be viewed as a good buying opportunity, especially in fundamentally superior stocks.

Personally, I’m seeing an excellent opportunity in the retail space that is a great buy on weakness. The reality is it’s looking good for the retail sector right now, and this retail stock is perfectly positioned to benefit as folks start opening their wallets again.

A recent report called Mastercard SpendingPulse found U.S. retail sales grew 23% year-over-year in April, which also marked the third-consecutive month of retail sales growth.

A lot of this retail growth has been made possible thanks to e-commerce, as consumers stay away from large crowds and buy what they need online. In fact, online sales increased 21.6% year-over-year in April. By category, e-commerce accounted for as much as 61.7% of April’s total apparel sales and 21% of department store sales.

In March, retail sales rose 9.8% from February, the largest monthly increase since May 2020, and climbed 27.7%, year-over-year. Car sales soared 15.1%, while sales at clothing stores jumped 18.3%. Retail stocks have also performed well this year, reversing the downward trend seen in many retail names in 2019 and 2020.

The industry bellweather, the SPDR S&P Retail ETF (XRT), is up over 44% so far this year, and nearly 144% over the past year. Compare that to S&P 500, which has gained about 10% year-to-date, or the Dow that’s climbed nearly 12%.

Fundamentally superior stocks in the sector have done much better.

Case in point: Big 5 Sporting Goods Corporation (BGFV). I recommended the traditional sporting goods retailer to my Growth Investor subscribers back in December.

The company had a record first quarter in terms of sales and earnings, thanks to robust demand for its products, especially winter-related products. Same store sales jumped 31.8% year-over-year.

For the first quarter, Big 5 Sporting Goods achieved total sales of $272.8 million and earnings of $21.5 million, or $0.96 per share. That’s up from sales of $217.7 million and an earnings loss in the first quarter of 2020. The consensus estimate called for earnings of $0.50 per share on $260.18 million in sales, so BGFV posted a 92% earnings surprise and a 4.9% sales surprise.

Company management commented, “Our strong sales momentum has continued into the second quarter with sales performing at historically high levels for the quarter to date.” For the second quarter, BGFV expects same store sales to rise between 22% and 27% and for earnings per share to come in between $1.05 and $1.25. That compares to a same store sales decline of 4.2% and earnings per share of $0.52 in the second quarter of 2020.

Big 5 Sporting Goods also upped its regular dividend by 20%, which brings its quarterly dividend to $0.18 per share.

BGFV has soared more than 50% on the heels of its stunning earnings report last Tuesday. Year-to-date, it’s skyrocketed over 193%. However, I think this stock is only getting started. It even holds my rare AAA-rating in Portfolio Grader, making it a “Strong Buy” right now.

So, if you’re looking for fundamentally superior stocks to invest in the retail space, BGFV is a stock to consider. Of course, I’m not just interested in retailers. My Growth Investor Buy List is chock full of high-quality stocks dominating their respective industries like Big 5 Sporting Goods Corporation. This is important, especially now that the market will grow more fundamentally focused in the coming months.

If you’re interested in my Growth Investor service, now is the perfect time to join. My Growth Investor buy lists are brimming with companies that are taking full advantage of surging consumer spending.

For more details, click here.

Sincerely,

Louis Navellier

Louis Navellier

P.S. There’s a great divide opening up in America and investing in my Growth Investor stocks will help get you on the right side of it. On one side is a new aristocracy that’s amassing more wealth more quickly than any other group in American history. For people like me, the one percent, life has never been better, more prosperous.

On the other side, the opposite is happening. Wealth is flowing out of the pockets of ordinary Americans at an unprecedented rate.

What’s happening is only going to gather in strength over the coming decades. It certainly won’t weaken.

Few Americans even know that any of this is going on. I’ve never seen anyone from my side of the chasm step forward to explain any of these things.

It’s why I put together this video. In it, I’ll lay out exactly what is happening, including several key steps every American should take right now.

It doesn’t matter if you have $500 in savings or $5 million. You can benefit from the information in this video.

It’s free to watch and by doing so I know you’ll be ahead of everyone else struggling to understand what is really going on.

The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Big 5 Sporting Goods Corporation (BGFV)

Why I Locked in Profits in AudioCodes Ltd. This Week

I know I may sound like a broken record, but earnings season really is my favorite time of year. The reality is it helps separate the wheat from the chaff. Every company must open its books and show Wall Street how it fared during the most-recent quarter.

This first-quarter earnings season has been particularly stunning. According to FactSet, more than 60% of S&P 500 companies have released results from the latest quarter, and 86% of these companies have exceeded analysts’ earnings estimates. What’s even more impressive is that the first-quarter earnings growth rate is now running at 45.8%, up from the estimated growth rate of 23.8% at the end of March. That’s the best earnings growth rate in 11 years!

As you know, I’m a numbers guy, so I take these earnings reports very, very seriously. The reports give me the opportunity to see which companies are truly fundamentally superior, i.e., continue to boast strong sales and earnings growth and offer positive future guidance. These are the companies that I recommend across all my services, not the stocks Wall Street is hyping up that are really just the flavor of the week.

Now, on the flip side, should a company show signs of slowing earnings momentum or dwindling buying pressure, then I know it’s time to sell, even if the stock is showing big returns.

Case in point: AudioCodes Ltd. (AUDC).

I added AUDC to my Platinum Growth Club Model Portfolio back in January 2019. At the time of my original recommendation, AudioCodes was experiencing strong demand for its products, as evidenced by strong top- and bottom-line growth. Over the past few years, the company continued to post strong quarterly results and exceed analysts’ expectations, especially as the work-from-home trend heated up in the past year.

Take the most-recent quarterly report, as an example. On April 27, AudioCodes reported first-quarter earnings of $12.7 million, or $0.37 per share, on revenue of $58.8 million. That represents 62.8% year-over-year earnings growth and 13.1% year-over-year revenue growth. Analysts were expecting earnings of $0.33 per share and revenue of $57.98 million, so AudioCodes posted a 12.1% earnings surprise and a slight revenue surprise.

While AudioCodes still expects demand to remain robust in the years to come, there has been a significant drop off in institutional buying pressure recently. As you can see in AUDC’s Report Card below, it earns a lowly F-rating for its Quantitative Grade.

This drove the overall stock to a D-rating, which makes it an automatic sell. So, I recommended that my Platinum Growth Club subscribers sell the stock on Monday and lock in their nearly 200% gains in about two years.

The Quantitative Grade is something I follow very closely. It is based on a stock’s Alpha (return uncorrelated to the overall market) divided by its standard deviation (volatility). Many high relative strength, high Beta (return correlated to the overall stock market) stocks often beat the overall market. They also have lower Alphas, as their return uncorrelated to the overall market has diminished. When the stocks become more correlated to the overall stock market, their quantitative grades tend to fall.

The whole point of the quantitative analysis in Portfolio Grader is to identify high Alpha stocks that are moving independent of the overall stock market with lower volatility. Typically, high Alpha, low standard deviation stocks are benefitting from persistent buying pressure. Because AUDC’s buying pressure had become more erratic recently, its Quantitative rating fell. So, it was time to sell and move on to more high-quality stocks.

The reality is I only want to be invested in the crème de la crème, so I have no problem cutting the cord on a stock whose fundamentals are no longer up to snuff. And that was exactly the case with AUDC.

I am pleased to say that my Platinum Growth Club Model Portfolio is filled with the crème de la crème. I handpick all of my Model Portfolio recommendations from my different services – Growth Investor, Breakthrough Stocks and Accelerated Profits – so you can rest assured that you’re always invested in the best of the best.

Across all of my services I have more than 100 stocks (plus 31 LEAPS call options, or Long-term Equity Anticipation Securities, in my Power Options trading service), and each and every one boasts strong earnings and sales growth.

Of course, you don’t have to invest in all 100+ stocks. That’s what the Model Portfolio is for, which currently houses 54 fundamentally superior stocks. So, if you want to stock up on fundamentally superior stocks, I encourage you to give Platinum Growth Club a try.

As a Platinum Growth Club subscriber, you’ll have full access to all of my services, including every Weekly Update, Monthly Issue and Flash Alert, as well as exclusive Platinum Growth Club Live Chat Events (my next one is scheduled for May 17) and more!

And you really couldn’t be joining at a better time, as I am releasing two brand-new buys in the Breakthrough Stocks May Monthly Issue today. Both stocks are characterized by accelerating earnings momentum, positive analyst revisions and persistent institutional buying pressure, which makes them great additions to Breakthrough Stocks this month.

For full details, click here.

Sincerely,

Louis Navellier

Louis Navellier

Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

AudioCodes Ltd. (AUDC)

Why the Second Quarter Could Be Even Better

There’s been a lot of volatility in the market lately.

Last Friday, the Dow dropped, then rose on Monday, then dropped on Tuesday, then rose on Wednesday.

While the recent gyrations might have some investors reaching for their antacids, let me reassure you — everything is fine.

Let’s start with earnings.

With over 75% of S&P 500 companies reporting, 87% so far have beat consensus earnings expectations, with an average 23% surprise, according to FactSet.

Folks, I’ve been in this business for decades, and I don’t think I can ever remember an earnings season this strong. It is absolutely stunning.

Now, there is definitely inflation brewing, and it’s worrying a lot of investors. Lumber prices, for instance, are up 67% this year, and they’re 340% higher than a year ago. The price rise is adding about $35,000 to the cost of the average newly built home in the U.S., according to the National Association of Home Builders.

Or take cobalt, the element that has a variety of industrial purposes, including as an oxide in the cathodes of lithium-ion batteries – the type of batteries used in high-end electric vehicles. Prices for the metal climbed 40% in the first quarter.

There’s a lot of concern that we’re not going to be able to produce as much as we want to produce because of all these acute supply shortages. But that’s due to soaring demand in the U.S and abroad.

The World Trade Organization expects North American merchandise exports will grow 7.7% this year, after falling over 8% in 2020. Meanwhile China’s imports from the U.S. set a new record in the first quarter, particularly products for the construction sector.

Now, traditionally, stocks are a great hedge against inflation because if we do have inflation, it makes earnings go even higher. Certainly, putting your money in the bank doesn’t protect you against inflation. It’s why I believe the stock market remains the best game in town.

But here’s the most shocking statistic I’ve seen lately, and it comes from the Atlanta Fed. The organization’s GDPNow estimate for second-quarter growth rose to 13.6% on Tuesday, up from 10.4% last Friday.

In other words, the Atlanta Fed expects economic growth will continue to accelerate in the second quarter, not decelerate.

So, it looks like I stand corrected. I’d predicted earnings growth would peak in the first quarter of this year. But now it looks like that will happen in the second quarter!

I think it’s time to realize that we may never ever have an earnings announcement sales environment quite like this. All I can tell you folks is that this is as good as it will ever get.

So, you shouldn’t let the daily gyrations in the market distract you, especially when you’re invested in fundamentally superior stocks – like my Platinum Growth Club subscribers are.

Case in point: My Breakthrough Stocks are forecasted to post 176.4% average annual sales growth and 758.2% average annual earnings growth. Although some large flagship stocks have issued more cautious guidance, my Breakthrough Stocks are not showing any signs of slowing down.

Furthermore, the analyst community has revised their consensus earnings estimate up 7.3% in the past month, which is indicative of accelerating earnings growth and more big earnings surprises ahead.

Given the strength in small-cap stocks, I am adding two new exciting stocks to my Breakthrough Stocks Buy List, which I will release in tomorrow’s Breakthrough Stocks May Monthly Issue. One posted a double-digit earnings surprise in the most recent quarter, while analysts expect the other to have triple-digit earnings growth and double-digit sales growth in the first quarter. I lay out all the details on these stocks in the issue.

Now, I still think that the overall stock market will narrow in the upcoming weeks as the bumpy summer months approach. Fortunately, my Portfolio Grader measures the underlying buying pressure and volatility on a given stock. Just as it can help guide me when to buy a stock with explosive potential, it also allows me to tell subscribers when to sell if buying pressure ebbs and the stocks become too volatile.

Profiting from the Crème de la Crème

The bottom line is that the current economic and earnings environments are as good as it can possibly get, so I foresee continued strong appreciation for at least through July.

And I’m pleased to say that my Platinum Growth Club subscribers are perfectly positioned to benefit from these trends and much more.

You see, I have more than 100 stocks across all of my services (plus 31 LEAPS call options, or Long-term Equity Anticipation Securities in my Power Options trading service), and each and every one boasts strong earnings and sales growth.

Of course, you don’t have to invest in all 100+ stocks. If you’d rather start small, I’ve got you covered there, too. My Platinum Growth Club service comes with my exclusive Model Portfolio.

I handpick all of my Model Portfolio recommendations from my different stock services – Growth InvestorBreakthrough Stocks and Accelerated Profits – so you can rest assured that you’re always invested in the crème de la crème.

So, if you want to make sure your portfolio is “locked and loaded” with fundamentally superior stocks for the long term, I encourage you to sign up for Platinum Growth Club today.

For full details, click here.

Sincerely,

Louis Navellier

Louis Navellier

Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

How the FAANG Stocks Stack Up

Corporate earnings are having a moment right now.

About 60% of S&P 500 companies have now released results from the most-recent quarter, and 86% of these companies have exceeded analysts’ earnings estimates. FactSet also reports that the average earnings surprise is nearly 23%, which is well above the five-year average of 6.9%. The average earnings growth rate is equally impressive, currently at 33.8%.

The large tech companies known as the FAANG stocks – Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL) — also recently reported earnings and hit it out of the ballpark. These companies continue to thrive in the “new normal” and offer customers an economic lifeline through e-commerce, cloud computing, digital advertising and artificial intelligence.

And despite the recent market jitters, it’s an exciting time for these major tech leaders, and for my own fundamentally superior stocks, so let’s get right to it…

Facebook (FB)

Facebook reported year-over-year sales growth of 48% to $26.1 billion, with advertising revenue up 46%, thanks in part to a 30% increase in the company’s average price for an ad. Total revenue beat Wall Street consensus estimates by 10.4%.

Earnings climbed 93% from a year prior to $3.30 per share, which crushed analysts’ expectations by 41%.

Average monthly active users climbed 4.5%, year-over-year, though the company’s users were flat in the U.S. and Canada for the second straight quarter.

The stock surged on the strong earnings report and is up over 2% over the past 5 days.

Looking ahead, Facebook expects total revenue will continue to accelerate in the second quarter, though year-over-year growth should begin to decelerate in the last two quarters of the year as the company laps periods of increasingly strong growth.

Wall Street is anticipating revenue will rise 5.9% in the coming quarter, and earnings should fall about 12%.

Amazon (AMZN)

Amazon’s first quarter net sales jumped 44%, year-over-year, to $108.5 billion and topped analysts’ estimates of $104.6 billion by 3.7%.

The company now has over a third more Prime members, or 200 million members, than it did in January 2020. Online store net sales of $52.9 billion and Amazon Web Services net sales of $13.5 billion bested analysts’ estimates.

Earnings of $15.79 per share more than tripled, year-over-year, and demolished analysts’ expectations of $9.64 per share by 64%.

The company expects second-quarter sales from $110 billion to $116 billion, which would represent from 24% to 30% growth from the second quarter of 2020. Operating income is expected to be between $4.5 billion and $8.0 billion, compared with $5.8 billion in the second quarter of 2020.

Shares soared over 2% after Amazon reported last Friday, but the stock is down nearly 4% over the past five days.

Analysts anticipate revenue will increase in the upcoming quarter to $108.9 billion, while earnings should dip to $10.99 per share.

Apple (AAPL)

Apple notched record second fiscal quarter revenue of $89.6 billion, up 54% from a year ago and 15.8% higher than analysts’ expectations.

Earnings of $1.40 per share rose 119%, year-over-year, and beat analysts’ expectations by $0.41 cents per share.

The company saw double-digit growth in all of its product categories, with iPhone sales up 65.5% from a year ago, Mac sales up 70.1% and iPad sales up 79%.

The company said it will increase its dividend by 7% to $0.22 per share and will carry out $90 billion in share buybacks.

The company didn’t provide guidance for the quarter ending in June, the CFO Luca Maestri said Apple expects to see a double-digit rise in revenue.

Wall Street is looking for Apple earnings to fall to $1.00 per share in the coming quarter, while revenue is expected to decrease to $72.4 billion.

Shares are down more than 5% over the past five days.

Alphabet (GOOGL)

Alphabet (“Google’s” corporate parent) saw revenue climb 34% year-over-year to $55.3 billion, which beat Wall Street’s consensus estimate by $3.6 billion. Earnings of $26.29 per share rose 166% from a year prior and crushed analysts’ expectations for $15.66 per share by 68%.

CEO Sundar Pichai said “Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained. We’ve continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations.”

Google Search brought in $31.9 billion in the quarter, a 30% gain from a year ago, YouTube ad revenue increased 49% from a year ago to $6 billion, and Cloud revenue soared 46% to $4.05 billion.

Shares are down more than 5% over the past five days.

Looking forward, analysts estimate revenue will climb to $55.98 billion in the following quarter, while earnings should come in at $19.05 per share.

Looking ahead to the second quarter, analysts in April also increased their earnings estimates for S&P 500 companies by 4.2% — the second highest increase during the first month of the quarter since 2002, FactSet said.

Netflix (NFLX)

Netflix saw revenue climb 24%, year-over-year, to $7.16 billion, beating estimates by $42 million, while earnings of $3.75 climbed 138% from a year ago and beat estimates by 25%.

However, the company gained 3.98 million subscribers, missing the consensus estimate for 6.2 million. Netflix blamed the miss on the pandemic as it faces increased competition in the content streaming space.

The company said production delays due to COVID-19 in 2020 will lead to a “…2021 slate that is more heavily second half weighted with a large number of returning franchises.”

The stock is down more than 1% over the past five days.

A Super Strong Earnings Season

Overall, the quarter has been outstanding for the FAANG stocks, with outstanding earnings and revenue surprises.

Looking forward, I expect that whichever stock can sustain the good sales and earnings and profit from the inflationary bubble that’s rolling through our economy will outperform.

However, I also expect to see a more narrowly focused market as the year rolls on.

But if you’re looking for fundamentally superior stocks to invest in, my Growth Investor Buy List is chock full of high-quality stocks dominating their respective industries. This is important, especially now that the first-quarter earnings season is now in full swing.

In the past three months, my average Growth Investor stock had its consensus earnings estimate revised 31.2% higher. Naturally, these positive earnings revisions are expected to precede massive first quarter earnings surprises.

If you’re interested in my Growth Investor service, now is the perfect time to join. I released my Growth Investor May Monthly Issue on Friday with seven new buys, my latest Top 5 Stocks list, earnings reviews and earnings previews for the 19 Growth Investor stocks that report this week.

There will be a lot to talk about, so click here now to get started!

Sincerely,

Louis Navellier

Louis Navellier

P.S. There’s a great divide opening up in America and investing in my Growth Investor stocks will help get you on the right side of it. On one side is a new aristocracy that’s amassing more wealth more quickly than any other group in American history. For people like me, the one percent, life has never been better, more prosperous.

On the other side, the opposite is happening. Wealth is flowing out of the pockets of ordinary Americans at an unprecedented rate.

What’s happening is only going to gather in strength over the coming decades. It certainly won’t weaken.

Few Americans even know that any of this is going on. I’ve never seen anyone from my side of the chasm step forward to explain any of these things.

It’s why I put together this video. In it, I’ll lay out exactly what is happening, including several key steps every American should take right now.

It doesn’t matter if you have $500 in savings or $5 million. You can benefit from the information in this video.

It’s free to watch and by doing so I know you’ll be ahead of everyone else struggling to understand what is really going on.

Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Facebook (FB), Amazon (AMZN), Alphabet (GOOG)

How to Play This “Goldilocks” Environment for Stocks

Along with the Spring flowers and the stimulus checks in the mail, earnings announcements are in full bloom this week as major tech companies roll out their latest earnings results.

Tech giants like Alphabet Inc. (GOOGL), Microsoft Corp. (MSFT), Apple Inc. (AAPL), Facebook, Inc. (FB) and Tesla, Inc. (TSLA) all reported this week and have been the talk of the town.

My own Growth Investor stocks resurged in recent weeks and are now in the midst of announcing spectacular first-quarter results. The average Growth Investor stock is characterized by 62.6% annual sales growth and 257.7% annual earnings growth. In the past three months, the average Growth Investor stock had its consensus earnings estimate revised 31.2% higher. Naturally, these positive earnings revisions are expected to precede massive first-quarter earnings surprises, so I’m very excited for what’s to come.

The reality is the first quarter sales and earnings reports represent “peak” momentum, thanks to the easy year-over-year comparisons. This also means that some companies’ growth will begin to slow down in future quarters, but I still expect to see plenty of strong results that beat analysts’ expectations.

Speaking of strength, we’re also seeing quite a bit of that in the economy. The Wall Street Journal recently reported that global growth is picking up as the economic rebound in both China and the U.S. is helping to lift other economies. First-quarter GDP in the U.S. popped 6.4% — the second fastest growth rate since the second quarter of 2003.

Furthermore, the pace of COVID-19 vaccinations in the eurozone is advancing. Purchasing manager indices (PMIs) are now positive in Australia, Japan and the eurozone, which bodes well for overall GDP growth. The only major drag on global GDP growth remains India, which is being hindered by a record number of new COVID-19 cases.

From what I can tell, the Federal Reserve is very close to meeting its objectives of fixing unemployment and sparking inflation to stimulate both business and consumer spending. But it remains committed to9 keeping key short-term interest rates at or near zero through 2023. The Fed reaffirmed Wednesday it will keep rates near zero.

The truth of the matter is the Fed can never raise key short-term interest rates much, otherwise it risks blowing up the federal government’s budget deficit, which is expected to cross above $30 trillion soon. So, we will likely remain in an ultralow interest rate environment for the rest of our lifetimes!

Couple this with low interest rates with the strong first-quarter earnings season and robust economic growth and it’s no wonder we’re in “Goldilocks” environment right now.

Profiting in the New Normal

Now, as we enter the “bumpy” summer months, investor anxieties naturally rise. So, if you’re looking for a time to take profits, the third week of May is ideal as the markets will likely get a chance to “burb” and digest the profits following earnings announcements.

June and July are seasonably strong months, but I see the markets narrowing. As I mentioned, second-quarter results will still be very positive, but sales and earnings momentum may slow.

The bottom line is the companies that can sustain good sales and earnings momentum when the overall market is slowing will obviously emerge as market leaders.

This is why if you want to profit in the current economic environment, your defense remains a strong offense of fundamentally superior stocks.

Take the five new stocks I’m recommending on Friday for my Growth Investor subscribers in my May Monthly Issue. They are all leaders in their respective industry and will play a key role in returning the U.S. and the world to a better, brighter, new normal. And Wall Street is predicting that each and every one will post double-digit earnings and sales growth in the coming quarter.

All five are High-Growth Investments, and all earn an A-rating in my Portfolio Grader, making them a “Strong Buy.”

Clearly, my Growth Investor Buy Lists are “locked and loaded” for the coming earnings season. If you want your portfolio to be, too, now is an especially great time to join Growth Investor.

For full details, click here now.

Sincerely,

Louis Navellier

Louis Navellier

The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Microsoft Corp. (MSFT), Facebook, Inc. (FB)

Is There a New Opportunity in the Wine Industry?

There’s no denying that retailers were hit hard during the coronavirus pandemic. Many well-known companies, like Neiman Marcus and J.C. Penney, filed for bankruptcy. All told, 21 U.S. retailers were forced to file for bankruptcy, with 17 filing while the coronavirus pandemic raged across the country.

The reality is many companies were significantly impacted by the U.S. lockdowns, lack of foot traffic and store closures, which weighed heavily on revenue.

With most Americans stuck at home and doing their shopping online, we saw a surge in ecommerce. Digital Commerce 360 found that for 2020, ecommerce sales exploded to $861.12 billion, a 44% year-over-year increase from ecommerce sales of $589.02 billion in 2019. 21.3% of those sales came from online.

Interestingly, some alcoholic beverages also benefited from the ecommerce boom. With the shutdown of restaurants, bars, clubs and even sporting venues, off-premise alcohol sales are soaring. Historically, beer and spirits companies thrive in economic downturns, and 2020 was no different. As far as ecommerce sales are concerned, U.S. sales for 2020 are estimated to rise 42% to $24 billion. And by the end of this year, the U.S. is expected to have more alcoholic e-commerce sales than China.

With the U.S. now reopening, my InvestorPlace colleague and friend, Matt McCall, and I look for pent-up demand and the desire to return to normal to trigger a massive amount of spending into another part of the alcoholic beverage sector.

I’m talking about the wine industry.

The wine industry certainly took it on the chin in 2020, with overall wine sales slipping 9.9%. Digging a little deeper into the numbers, on-premise sales fell 45%. However, online sales actually rose 10% year-over-year. This was thanks in part to virtual tastings and buying popular wines in stores. For 2020, the top five wines were cabernet sauvignon ($3.2 billion), chardonnay ($2.8 billion), red blends ($2 billion), pinot grigio ($1.9 billion) and pinot noir ($9.8 million).

Now, the U.S. is the largest wine consuming market in the world, representing 15% of global consumption in 2017, and the number of wineries in the U.S. has nearly doubled over the past decade. U.S. wine sales have grown for 25 consecutive years. That market should continue to grow. According to Mordor Intelligence, the wine market is forecast to rise at a 1.47% compound annual growth rate from 2020 to 2025.

And to Matt and me that spells opportunity. It’s why we’re adding a wine company to our Power Portfolio tomorrow after the market close. If you’re guessing that it’s a big, well-known company like Constellation Brands, Inc. (STZ), you’d be wrong. The truth of the matter is STZ’s fundamentals are poor. For example, while the company posted earnings per share of $1.82 in the most recent quarter, which beat estimates calling for earnings of $1.55 by 17.4%, its earnings are still down 41.1% from the previous quarter.

So, it should be no surprise that STZ receives a measly D-rating in Portfolio Grader. Just take a look below…

As you can see in STZ’s report card above, the stock earns a C-rating for its Fundamental Grade, a D-rating for its Quantitative Grade and a D-rating for its Total Grade, making STZ a “Sell” right now.

The stock Matt and I like is much smaller, but still fundamentally superior. It holds an A-rating for its Total Grade, making it a “Strong Buy.” It’s also seen solid sales growth, including double-digit growth for its direct-to-consumer retail wine sales.

The truth of the matter is this is a fundamentally superior stock that is poised to skyrocket during the “Great Grand Reopening.”

For full details on what the Great Grand Reopening is and the stock, click here now. Matt and I see a lot of great opportunities lining up for 2021, 10 of which are already sitting on our Power Portfolio. But you need to be VERY selective with your money moving forward given everything that’s happened in the world. Tomorrow’s recommendation is just one way to do it.

Sincerely,

Louis Navellier

Louis Navellier

The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Should You Worry About the Biden Administration’s Proposed Tax Increase?

This earnings season has been stunning so far, with many companies beating analysts’ earnings expectations.

Even better, liquidity in the sorts of fundamentally superior stocks I recommend has exploded to the upside.

However, the party fizzled Thursday a bit when the Biden administration proposed to nearly double taxes on long-term capital gains to 39.6% from the 20% current rate.

Now, I want you to know that these tax increases are proposed, nothing more. They won’t go through, and here’s why…

For starters, Senator Joe Manchin of West Virginia. He is the most powerful man in Congress right now and stands in the middle of many contention issues wielding a tie-breaking vote. Senator Manchin has already shot down proposals to increase the corporate tax rate to 28% from 21%, asking for a 25% rate instead. I think Manchin will also knock down this plan to raise capital gains taxes.

See, many on the left are already upset with the Biden administration for not raising the state and local tax (SALT) deduction, which allows taxpayers in high tax states to deduct local tax payments on their federal tax returns.

In other words, there’s already tremendous political infighting in Congress regarding taxes.

Also, it is imperative that dividend and long-term capital gains tax rates remain the same. Currently, the reason dividend income taxes are capped at 20% is because they are also already taxed at the corporate level. What this proposal represents is a second wave of taxation. The increase would bring taxation on capital gains to over 60%, before adding in state taxes.

And if long-term capital gains taxes went to 39.6%, while dividend taxes remained capped at 20%, what would happen is Corporate America would stop selling their stocks and just pay bigger dividends.

The bottom line: this tax proposal isn’t going through, folks.

Money on the Sidelines

In fact, I think the market will rebound quickly for several reasons. One is the stunning earnings announcement season underway.

According to FactSet, as of last Friday 9% of S&P 500 companies have released results from the latest quarter so far and of these companies, 81% have topped analysts’ earnings estimates. The average earnings surprise so far is a whopping 30.3%.

There’s also a lot of great economic news out there. I wrote about some of the highlights on Thursday.

And even though the rollout of COVID-19 vaccines is the strongest economic stimulus you could hope for, another factor that has me incredibly bullish is the sheer amount of money sitting on the sidelines right now.

I think most people are failing to realize just how much money and economic stimulus is just sitting there idling, waiting to be spent.

Specifically, there’s nearly $5 trillion sitting on the sidelines. To put that into perspective, $5 trillion is roughly 25% of the entire annual GDP of the United States.

We’ve never seen anything like this in our lives.

And according to the FDIC, which is responsible for insuring our checking and savings accounts, more than $2 trillion has been stockpiled into individual accounts at U.S. banks.

This stockpile grew in part from people selling stocks last year when the market crashed. But it also came from trillions of dollars in stimulus money getting pumped into the economy.

Most recently, the $1.9 trillion stimulus plan President Biden signed in March.

Another thing worth pointing out is that all this stimulus has sent the money supply to historic levels. Check out this chart showing the current level of money supply in the US.

The money supply is a broad metric used to determine how much money is available at any given point. Checking accounts, savings accounts and the net worth of individuals are at all-time highs.

Personal income surged 10% in January, and this is obviously before President Biden passed an additional round of stimulus checks. In other words, it shows the purchasing power of American businesses and consumers.

Stock prices tend to move higher when the money supply is high, and it’s never been this high before. As you can see in this chart above, there’s a lot of pent-up stimulus and economic activity just waiting to be unleashed.

And without being able to go out and spend all this newfound money at restaurants and on vacations, people have turned to the markets.

Charles Schwab announced in February that the number of new brokerage accounts being opened was three times more than the previous year.

And a recent online survey from Deutsche Bank showed that nearly 50% of respondents said they plan on spending at least half of their stimulus money on stocks.

Best Performers of 2021

Now, if there’s one thing I’ve learned in my investing career, it’s that you can’t go wrong if you stick with companies that “deliver the goods” with regard to earnings.

To help you make sense of everything, my InvestorPlace colleague, Matt McCall, and I have laid out our investing road map we believe will help you navigate the markets moving forward.

Matt and I have done the hard research and run the numbers on key fundamental and quantitative factors to form our view of what’s coming next.

So, these forecasts aren’t based on gut feelings — but rather raw data, logic and probability. It allows us to uncover the truth about any individual stock or even the entire market.

Click here to watch the replay and see why Matt and I both think stocks are a screaming buy now.

Sincerely,

Louis Navellier

Louis Navellier

P.S. Matt and I see a lot of great opportunities lining up for 2021. But you need to be SUPER selective with your money moving forward given everything that’s happened in the world.

And you need to have a proven game plan in place for the moments when the markets get rocked.

We both see big moves coming to the market in 2021, and we’ve created a unique approach to exploit these moves for big gains. We go over it in fine detail at our Roadmap to Recovery eventClick here to watch the replay now.

The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Why Growth Stocks Will do Well in the Current Economic Environment

The first-quarter earnings season is kicking things off in high gear and looks even stronger than most could have anticipated.

As of last Friday, only 9% of S&P 500 companies released results from the latest quarter. And of these companies, 81% topped analysts’ earnings estimates, and the average earnings surprise was a whopping 30.3%, according to FactSet.

To put this into perspective, the average five-year earnings surprise is only 6.9%. If companies continue to wallop estimates in the upcoming weeks, the first quarter of 2021 could mark the biggest earnings surprises since FactSet started tracking data in 2008.

And it looks like that’s becoming even more likely. On Monday, S&P Capital IQ raised its first-quarter S&P 500 earnings growth estimate to 19.8% from its prior estimate of 14.8%.

So it’s clear to me that we’re at the start of a truly spectacular first-quarter earnings season. This is great news for fundamentally superior stocks, as they should post strong earnings results that drop kick and drive them higher. The reality is that year-over-year comparisons are easier this year given that the coronavirus pandemic wreaked havoc on many companies’ top and bottom lines in 2020. It also doesn’t hurt that the U.S. has staged a stunning economic rebound in the first quarter—and you need to look no further than recent economic data for proof.

Take the latest retail sales report as an example. Last week, the Commerce Department revealed that retail sales surged 9.8% in March, crushing economists’ expectations for a 6.1% increase. The rise comes on the heels of a 2.7% dip in February and a 7.6% increase in January. March retail sales were the strongest in 10 months.

The fact of the matter is that the stimulus checks in March inspired many Americans to open their wallets recently. Thanks in part to gun sales, sporting goods sales soared 23.5% in March, while clothing sales jumped 18.3%. Vehicle sales also climbed 15.1% last month. And with more restaurants and bars reopening their doors, sales at restaurants and bars rose 12.1% in March.

Clearly, consumers were spending up a storm, and that bodes well for first-quarter GDP growth.

In fact, in the wake of the March retail sales report, the Atlanta Fed upped its first-quarter GDP forecasts to an annual rate of 8.3%. That compares to its previous estimate for 6.2% economic growth. We’ll have more clarity about how the U.S. economy actually fared in the first quarter next Thursday when the Commerce Department releases its preliminary first-quarter GDP estimate.

Meanwhile, the Labor Department reported this morning that first-time unemployment claims dropped last week to 547,000. The figure is below the Dow Jones estimate for 603,000 and represents a new low for pandemic claims.

With the robust economic recovery here in the U.S., there are fears spreading that inflation is brewing—and they’re not wrong.

The Producer Price Index (PPI) rose 1% in March, exceeding economists’ expectations for only a 0.5% increase. Wholesale energy prices soared 5.9% and food prices climbed 0.6% last month. Core PPI, which excludes food and energy, increased 0.6% in March. In the past 12 months, PPI and core PPI have climbed 4.2% and 3.1%, respectively.

The Fed has certainly succeeded in “sparking” wholesale inflation, and we’ll have to wait and see if it is “transitory” as the Fed described.

The Consumer Price Index (CPI) also soared higher last month on the heels of a surge in gasoline prices. The CPI jumped 0.6% in March and is up 2.6% year-over-year. Economists were looking for a 0.5% increase last month. The CPI was driven higher by a 9.1% surge in gasoline prices in March. I should also add that retail gasoline prices have risen 22.5% in the past 12 months.

On the surface, the inflation numbers look a little scary. But when you exclude “transitory” energy costs, the CPI isn’t actually rising faster than economists’ expectations. Also, I know that inflation can spook a lot of investors, but actually growth stocks that post earnings exceeding the rate of inflation are typically great inflation hedges.

Lock and Load Time

So what should investors do? What are the best investments to make moving forward? What stocks should you avoid at all costs?

To help you make sense of everything, my InvestorPlace colleague, Matt McCall, and I have laid out our investing road map we believe will help you navigate the markets moving forward.

In fact, Matt and I believe we’re about to witness one of the biggest economic booms in U.S. history.

And it’s all thanks to three major events colliding at the same time. We discuss the three events in our Road Map to Recovery event in detail, so grab a pen and click here to check it out.

Sincerely,

Louis Navellier

Louis Navellier

P.S. Any one of these events could send the stock market roaring higher, but with all three of these opportunities unfolding at the same time, it could be like shooting fish in a barrel.

And my forecasts aren’t based on gut feelings — but rather raw data, logic and probability. It allows me to uncover the truth about any individual stock or even the entire market.

If the numbers aren’t adding up, my proprietary algorithms will uncover it and alert me. My system also is able to identify stocks with accelerating profits and sales, as well as healthy buying pressure from institutional investors.

To be honest, the early readings from my quant-based systems are off the charts. But if you’re still haunted from the carnage COVID-19 released on the world, then you need to listen carefully to what Matt and I have to say.

The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

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