New Advancements in AI are Changing Healthcare as We Know It

For the majority of 2020, the world watched as the healthcare industry scrambled to understand and prevent COVID-19. And when vaccines started rolling out nine months after the start of the pandemic, it was clear that new technology applications were the key to preventative healthcare and treatment options.

One major key to the advancement of healthcare technology over the past year has been artificial intelligence (AI). AI has not only helped create the COVID-19 vaccine but is helping doctors, too.

In today’s Market360, I want to talk about a new AI advancement in healthcare that just rolled out this month. So, let’s jump right in.

Telehealth has become crucial during the pandemic and will continue to be used even after the pandemic is over to make doctors’ visits even more convenient for patients. But not all doctors can use tele-health options to diagnose patients, when a diagnosis often requires the doctor to touch the patient in order to diagnose what the problem is.

Well, this issue has been solved in an important corner of the dermatological world with the help of AI technology. AI scientists invented an algorithm that can identify and screen for early-stage melanoma, a type of skin cancer that is responsible for 70% of skin cancer deaths all over the world.

The former process of screening for melanoma usually involved the doctor visually inspecting any suspicious areas and then perform a biopsy to test for skin cancer. However, it was also ineffective due to the sometimes-high level of lesions that had to be tested to be sure the patient would be melanoma free.

The early detection of melanoma with the new AI tool can avoid the hassle and danger of these steps with diagnosis on site.

The AI algorithm was created with the help of patients submitting over 20,000 photos of suspicious lesions from their personal devices and doctors cataloguing the images as safe or not safe. The team found that the doctors could identify suspicious lesions over 90% of the time. This information was programmed into an AI algorithm and can now be used at home with your own smartphone camera.

My Play in the Healthcare Technology Sector

The reality is AI is changing the game, which is why I have loaded up on AI-related stocks in Growth Investor. Let me give you an example of a stock I recommended in the healthcare sector…

Veeva Systems (VEEV) is a leading provider of cloud software solutions for the life sciences industry. The company’s solutions help pharmaceutical and life sciences companies use cloud-based architectures and mobile applications for their businesses.

Veeva uses AI technology in a variety of ways, from processing and storing data to making tools easier and safer to use. Veeva uses their patented machine learning program to extract drug safety data from their extensive database of sources into an easy to comprehend format.

Their cloud-based software model improves scalability while also aiming to reduce the time and effort of manual entry. This helps save time and energy for the healthcare organizations who utilize their services as well as a fallback to verify drug safety.

VEEV isn’t my only Growth Investor stock using AI technology to take their company to the next level. If you’re interested in the other AI-related stocks I recommend, I encourage you to sign up for Growth Investor today.

Once you do, I’ll give you three free reports, 3 Stocks Powering the $150 Trillion AI Boom, 3 Plays for the $12 Billion Battery Opportunity and The One AI Company Set to Corner the Booming Cybersecurity Industry.  Read them here 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:

Veeva Systems (VEEV)

Weekly Upgrades and Downgrades

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 190 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

This Week’s Ratings Changes:

Upgraded: From Hold to Buy
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BTI British American Tobacco PLC D C D
DG Dollar General Corporation D C D
GIS General Mills, Inc. D C D
PG Procter & Gamble Company D C D
SNP China Petroleum & Chemical D B D
SU Suncor Energy Inc. D C D
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAL American Airlines Group, Inc. C D C
AIG American International Group, Inc. C C C
ALC Alcon, Inc. D C D
AMGN Amgen Inc. D C D
AMH American Homes 4 Rent Class A D C C
ANET Arista Networks, Inc. D C D
ATUS Altice USA, Inc. Class A D B D
AZN Astrazeneca PLC Sponsored ADR D B D
BCE BCE Inc. D C D
BDX Becton, Dickinson and Company D B D
BKI Black Knight, Inc. D B D
BMY Bristol-Myers Squibb Company D C D
BP BP p.l.c. Sponsored ADR F C D
BRK.A Berkshire Hathaway Inc. Class A D C D
C Citigroup Inc. D C C
CAH Cardinal Health, Inc. F B D
CCEP Coca-Cola European Partners Plc F C D
CCI Crown Castle International Corp F B D
CCL.U Carnival Corporation C F C
CG Carlyle Group Inc D B C
CHRW C.H. Robinson Worldwide, Inc. D B D
CI Cigna Corporation D B D
CL Colgate-Palmolive Company D C D
COO Cooper Companies, Inc. D B D
CSCO Cisco Systems, Inc. D C D
CVX Chevron Corporation D C D
DISH DISH Network Corporation Class A D B C
DXCM DexCom, Inc. D C D
E Eni S.p.A. Sponsored ADR D C D
EC Ecopetrol SA Sponsored ADR F C D
EFX Equifax Inc. D B C
FTV Fortive Corp. D B D
FWONK Liberty Media Corporation Series C B D C
GLPI Gaming and Leisure Properties, Inc. C B C
GWW W.W. Grainger, Inc. D C D
HAS Hasbro, Inc. D C D
HRL Hormel Foods Corporation D C D
HSY Hershey Company F C D
IBN ICICI Bank Limited Sponsored ADR D B C
ICE Intercontinental Exchange, Inc. D C D
IEX IDEX Corporation D C D
INCY Incyte Corporation F C D
INTU Intuit Inc. C D C
IT Gartner, Inc. D B C
ITW Illinois Tool Works Inc. D C D
JNJ Johnson & Johnson D C D
K Kellogg Company F C D
KDP Keurig Dr Pepper Inc. D C D
KEY KeyCorp D B C
LBTYK Liberty Global Plc Class C D C D
LULU Lululemon Athletica Inc D C D
LUMN Lumen Technologies, Inc. D D D
LYG Lloyds Banking Group plc Sponsored D B C
LYV Live Nation Entertainment, Inc. C D C
MDLZ Mondelez International, Inc. Class A F C D
MGM MGM Resorts International C F C
MO Altria Group Inc D C D
MSCI MSCI Inc. Class A D C D
NICE NICE Ltd Sponsored ADR C C C
NLY Annaly Capital Management, Inc. C C C
NVO Novo Nordisk A/S Sponsored ADR D C D
NVR NVR, Inc. C C C
NWG NatWest Group Plc Sponsored ADR C C C
PBA Pembina Pipeline Corporation C D D
PCAR PACCAR Inc D C D
PFE Pfizer Inc. D C D
PFG Principal Financial Group, Inc. C C C
PM Philip Morris International Inc. D C D
PPG PPG Industries, Inc. D C D
PRU Prudential Financial, Inc. C C C
QSR Restaurant Brands International Inc C D C
RACE Ferrari NV D C C
RCI Rogers Communications Inc. Class B F C D
SAN Banco Santander S.A. Sponsored ADR D C D
SBUX Starbucks Corporation D C D
SPG Simon Property Group, Inc. C D C
STE STERIS Plc D C D
STNE StoneCo Ltd. Class A C C C
TAP.A Molson Coors Beverage Company Class A D F D
TFC Truist Financial Corporation D B C
TM Toyota Motor Corp. Sponsored ADR C C C
TRI Thomson Reuters Corporation D C D
TU TELUS Corporation D C D
UBER Uber Technologies, Inc. C D C
UL Unilever PLC Sponsored ADR D C D
UNP Union Pacific Corporation D C D
VTR Ventas, Inc. D C C
WDC Western Digital Corporation C C C
WORK Slack Technologies, Inc. Class A C C C
XLNX Xilinx, Inc. D C D
XOM Exxon Mobil Corporation D D D
XP XP Inc. Class A C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABBV AbbVie, Inc. B C C
ADM Archer-Daniels-Midland Company C C C
AEM Agnico Eagle Mines Limited B D C
ALXN Alexion Pharmaceuticals, Inc. B C C
AMZN Amazon.com, Inc. C B C
ARGX argenx SE ADR B C C
BCH Banco de Chile Sponsored ADR D C C
BIO.B Bio-Rad Laboratories, Inc. Class B C B C
BR Broadridge Financial Solutions, Inc. C B C
BSAC Banco Santander-Chile Sponsored ADR D B C
CAG Conagra Brands, Inc. D C C
CHD Church & Dwight Co., Inc. B C C
CHTR Charter Communications, Inc. Class A C C C
CLX Clorox Company C C C
CMCSA Comcast Corporation Class A C C C
CNI Canadian National Railway Company B C C
CPB Campbell Soup Company C C C
DBX Dropbox, Inc. Class A C C C
EMN Eastman Chemical Company C C C
EMR Emerson Electric Co. C C C
ENB Enbridge Inc. C C C
EQNR Equinor ASA Sponsored ADR C C C
FNV Franco-Nevada Corporation C B C
FOXA Fox Corporation Class A C C C
FTNT Fortinet, Inc. C C C
GIB CGI Inc. Class A D C C
HTHT Huazhu Group Ltd. Sponsored ADR B C C
HWM Howmet Aerospace Inc. B C C
INFO IHS Markit Ltd. B D C
IR Ingersoll Rand Inc. C B C
J Jacobs Engineering Group Inc. C C C
KEYS Keysight Technologies Inc C C C
MFC Manulife Financial Corporation C B C
MKC McCormick & Company, Incorporated D C C
MKTX MarketAxess Holdings Inc. C C C
MS Morgan Stanley C B C
MSFT Microsoft Corporation C B C
NDAQ Nasdaq, Inc. C C C
NTES NetEase, Inc. Sponsored ADR B C C
NTR Nutrien Ltd. C B C
OKE ONEOK, Inc. C C C
OTIS Otis Worldwide Corporation B C C
PANW Palo Alto Networks, Inc. B C C
PAYX Paychex, Inc. C C C
RMD ResMed Inc. C C C
ROL Rollins, Inc. C B C
SCHW Charles Schwab Corporation C B C
SJM J.M. Smucker Company C C C
SKM SK Telecom Co., Ltd. Sponsored ADR C C C
SPOT Spotify Technology SA B D C
TECH Bio-Techne Corporation B C C
TMO Thermo Fisher Scientific Inc. C B C
TROW T. Rowe Price Group C B C
UI Ubiquiti Inc. C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ALLY Ally Financial Inc B B B
AVLR Avalara Inc B C B
BBY Best Buy Co., Inc. B C B
CFG Citizens Financial Group, Inc. B C B
COF Capital One Financial Corporation C B B
DFS Discover Financial Services B C B
DGX Quest Diagnostics Incorporated B B B
DRI Darden Restaurants, Inc. B C B
ESTC Elastic NV B C B
EWBC East West Bancorp, Inc. B C B
F Ford Motor Company B C B
FERG Ferguson Plc B C B
FITB Fifth Third Bancorp B C B
GE General Electric Company B C B
GM General Motors Company B B B
GPS Gap, Inc. B C B
HD Home Depot, Inc. B C B
KB KB Financial Group Inc. Sponsored ADR B C B
KLAC KLA Corporation B C B
LRCX Lam Research Corporation B B B
MHK Mohawk Industries, Inc. B C B
MKSI MKS Instruments, Inc. B B B
MUFG Mitsubishi UFJ Financial Group, Inc. B B B
NOW ServiceNow, Inc. B C B
NVCR NovoCure Ltd. B C B
ORLY O’Reilly Automotive, Inc. B C B
PTC PTC Inc. B C B
RF Regions Financial Corporation C B B
SHW Sherwin-Williams Company B C B
SMFG Sumitomo Mitsui Financial Group, Inc. B C B
SYF Synchrony Financial B B B
TPR Tapestry, Inc. B C B
TREX Trex Company, Inc. B C B
UPS United Parcel Service, Inc. Class B B C B
Z Zillow Group, Inc. Class C B C B
ZEN Zendesk, Inc. A D B

To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader, my proprietary stock screening tool. You may get started here.

Sincerely,
Louis Navellier

Louis Navellier

3 Ways to Invest in the Microgridification Trend

As you may know, solar homes are now mandated in California for new home construction, and electricity is typically sold back to the electricity grid at very low rates. But with the California electricity grid no longer reliable during fire season, more businesses and homeowners are looking to store their electricity in backup systems. These backup systems are also vital for electric vehicles (EVs) in California and in other major solar markets.

But what most people don’t know is that just because you have solar panels doesn’t mean you will have power during an outage.  In order to solve that problem, you need a microgrid.  Simply put, a microgrid is a self-sufficient system used to generate and distribute energy to a specific area, such as a home, school, office building, or neighborhood. 

Today’s microgrids rely on renewable energy generation, such as solar panels or wind turbines, combined with a battery storage and distribution system.  While microgrids can operate independently, for the most part they are still connected to a central utility grid.  When the microgrid produces excess energy, that energy can be sent to the central grid.

If power generation is low, the microgrid can pull energy from the grid as a backup.  Since energy prices constantly fluctuate, timing is important.  Advanced microgrids will buy power from a central grid to charge their battery storages when prices are low and use stored energy when grid prices are high.

So, in today’s Market360, I want to share three stocks to watch if you’re interested in this space.

Enphase Energy, Inc. (ENPH)

Enphase Energy is headquartered in Fremont, California, and manufactures and sells micro-inverter systems for the photovoltaic industry. Inverters convert energy generated by solar panels into usable energy that can power a home.

The company has benefited immensely from the California mandate that requires new single-family and multi-family homes to be built with solar capacity. The law went into effect in California on January 1, 2020, and applies to all new home construction less than four stories tall. Perhaps, unsurprisingly, this led to a more than 500% increase in share price for ENPH in 2020.

Speaking of numbers, for the first quarter, the analyst community is estimating sales of $292 million, a 42% increase over the same quarter last year and earnings per share of $0.45, an 18% increase over last year. In the past three months, the analyst community has revised its consensus earnings estimate 15.4% higher.

Typically, positive earnings revisions precede future earnings surprises. In my opinion, Enphase Energy will continue to benefit from the microgridification of the home and it will grow into its relatively high PE ratio.

ENPH currently holds a B-rating in Portfolio Grader, making it a solid “Buy.”

Generac Holdings, Inc. (GNRC)

Generac engages in the design and manufacturing of power generation equipment and other power products. The company is headquartered in Waukesha, WI. They also directly compete with Tesla’s (TSLA) Powerwall business.

Like the Powerwall, Generac’s PWRCell allows homeowners to store up to 17.1 kilowatt hours (kWh) that can be used to power a home during an outage. They claim to be the superior battery storage solution.

As far as fundamentals are concerned, for the first quarter, the analyst community is estimating sales of $726 million, a 53% increase over the same quarter last year and earnings per share of $1.83, a 110% increase over last year. This is a great sign when we see companies that can grow their top and bottom lines at such rapid rates. In the past three months, the analyst community has revised its consensus earnings estimate 24.5% higher.

In my opinion, Generac will continue to benefit from the microgridification of the home. Furthermore, it trades at a relatively low PE ratio compared to its peers in the space. All of these factors combined make Generac a top pick in clean energy storage. And an added benefit: Generac could see increased buying pressure since its inclusion in the S&P 500 on March 22, 2021.

The company is A-rated in Portfolio Grader with a B-rating for its Fundamental Grade and an A-rating for its Quantitative Grade, which makes it a “Strong Buy.”

Solar Edge Technologies, Inc. (SEDG)

SolarEdge Technologies, Inc. is headquartered in Herzliya, Israel, and engages in the development of energy technology, which provides inverter solutions.  Its products and services include photovoltaic inverters, power optimizers, photovoltaic monitoring, software tools, and electric vehicle chargers.

The company’s inverters play a key role in the microgrid system as they convert direct current (DC) electricity into alternating current (AC) electricity.  This is what allows electricity generated from solar panels to be used to power our homes. So, the global shift towards a clean energy future should be a major tailwind for SolarEdge.

However, looking ahead to the first quarter, the analyst community is estimating sales of $396 million, an 8% decrease over the same quarter last year and earnings per share of $0.77, a 5% decrease over last year.  However, the company’s operating earnings have typically been stronger than its overall earnings and the stock has posted substantial earnings surprises for the past three quarters. Case in point: It posted a 14% earnings surprise in the fourth quarter.

Additionally, in the past three months, the analyst community has revised its consensus earnings estimate slightly higher, which bodes well for another potential earnings surprise.  In my opinion, SolarEdge will continue to benefit from its role in the microgrid ecosystem. That being said, there is stiff competition in the inverter business and SolarEdge will need to take more market share in order to justify its high valuation.

With that said, the company is C-rated in Portfolio Grader, so it is a “Hold” right now.

Why the Microgrid Trend is Here to Stay

Overall, microgrids are more efficient and reliable than central grids, which are prone to outages that can impact entire cities, and even states.  As of 2019, only two million homes had solar panels and, of those, less than 100 thousand had the inverters and battery storage needed in order to have power during a blackout.

I expect to see these numbers increase dramatically over the next few years as renewable energy gets cheaper.  Therefore, I believe the microgridification of our energy system will lead to massive opportunities for investors. However, the real profit potential will come from the fundamentally superior stocks, like the ones I mentioned above.

In fact, I personally recommended them in several of my services, all of which my Platinum Growth Club subscribers have full access to.

But the microgrid industry isn’t the only way to make money, there are a variety of other sectors, technologies and trends that are poised to prosper. I’m talking about technologies like cloud computing, artificial intelligence (AI) and 5G – just to name a few. And I’m pleased to say that my Platinum Growth Club subscribers are perfectly positioned to benefit from these trends (and many more!), too.

You see, I have more than 100 stocks across all of my services, and each and every one boasts strong earnings and sales growth. This is important because we’re about to head into the first-quarter earnings season. This should be a phenomenal earnings season as it represents peak momentum for earnings and sales. So, I fully anticipate my stocks to post wave-after-wave of positive earnings results, which, in turn, should drop kick and drive them higher.

It’s why now is a great time to join Platinum Growth Club, so your portfolio is “locked and loaded.”.

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 Investor, Breakthrough Stocks and Accelerated Profits – so you can rest assured that you’re always invested in the crème de la crème.

Now is the perfect time to join because I just released my Platinum Growth Club Monthly Issue for April, with updates on my Model Portfolio stocks and nine new buys and seven new sells, so you’ll have even more stocks to choose from.

If you’re interested in joining, click here for full details.

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:

Enphase Energy, Inc. (ENPH), Generac Holdings, Inc. (GNRC), Solar Edge Technologies, Inc. (SEDG)

Weekly Upgrades and Downgrades

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 93 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

This Week’s Ratings Changes:

Upgraded: From Hold to Buy
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABBV AbbVie, Inc. B C B
BR Broadridge Financial Solutions, Inc. B B B
BTI British American Tobacco PLC Sponsored B C B
CGNX Cognex Corporation B C B
CHTR Charter Communications, Inc. Class A B C B
CLX Clorox Company B C B
DG Dollar General Corporation B C B
EL Estee Lauder Companies Inc. Class A B B B
ENB Enbridge Inc. B C B
FFIV F5 Networks, Inc. B C B
FTNT Fortinet, Inc. B B B
GIB CGI Inc. Class A B C B
GRMN Garmin Ltd. B C B
HPQ HP Inc. B B B
INFO IHS Markit Ltd. A D B
J Jacobs Engineering Group Inc. B C B
KEYS Keysight Technologies Inc B C B
KKR KKR & Co. Inc. C B B
KSU Kansas City Southern B C B
LEN Lennar Corporation Class A B B B
LEN.B Lennar Corporation Class B B B B
MKC McCormick & Company, Incorporated B C B
MSFT Microsoft Corporation B B B
NDAQ Nasdaq, Inc. B C B
NSC Norfolk Southern Corporation B C B
OKE ONEOK, Inc. B C B
ORCL Oracle Corporation B B B
PAYX Paychex, Inc. B C B
PG Procter & Gamble Company B C B
ROK Rockwell Automation, Inc. B B B
ROL Rollins, Inc. B B B
SKM SK Telecom Co., Ltd. Sponsored ADR B C B
SNA Snap-on Incorporated B C B
SNPS Synopsys, Inc. B C B
TECH Bio-Techne Corporation B C B
TROW T. Rowe Price Group B B B
ZNGA Zynga Inc. Class A B C B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ADBE Adobe Inc. C C C
ALC Alcon, Inc. C C C
ANET Arista Networks, Inc. C C C
APH Amphenol Corporation Class A D C C
BKI Black Knight, Inc. D B C
BMY Bristol-Myers Squibb Company C C C
BRK.A Berkshire Hathaway Inc. Class A C C C
CAH Cardinal Health, Inc. D B C
CAJ Canon Inc. Sponsored ADR D B C
CCI Crown Castle International Corp D B C
CL Colgate-Palmolive Company C C C
CSCO Cisco Systems, Inc. C C C
CTAS Cintas Corporation C C C
CTSH Cognizant Technology Solutions C C C
DLTR Dollar Tree, Inc. D B C
DOV Dover Corporation C C C
DXCM DexCom, Inc. D C C
FICO Fair Isaac Corporation D C C
FNF Fidelity National Financial, Inc. D B C
HAS Hasbro, Inc. C C C
HIG Hartford Financial Services Group, Inc. C C C
HSY Hershey Company D C C
ICE Intercontinental Exchange, Inc. C C C
ITW Illinois Tool Works Inc. C C C
IX ORIX Corporation Sponsored ADR C D C
K Kellogg Company C C C
KDP Keurig Dr Pepper Inc. C C C
LBTYK Liberty Global Plc Class C C C C
LII Lennox International Inc. C D C
LSXMB Liberty Media Corp. Series B Liberty C D C
LULU Lululemon Athletica Inc D C C
MCHP Microchip Technology Incorporated C C C
MET MetLife, Inc. C C C
MSCI MSCI Inc. Class A C C C
MTD Mettler-Toledo International Inc. D C C
PHM PulteGroup, Inc. D B C
PKG Packaging Corporation of America C D C
PPG PPG Industries, Inc. C C C
PSA Public Storage C C C
SAN Banco Santander S.A. Sponsored ADR D C C
SBUX Starbucks Corporation C C C
UL Unilever PLC Sponsored ADR D C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
EWBC East West Bancorp, Inc. C C C
FOX Fox Corporation Class B C B C
NVCR NovoCure Ltd. B C C
OKTA Okta, Inc. Class A B C C
UBS UBS Group AG C B C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ALNY Alnylam Pharmaceuticals, Inc D C D
EDU New Oriental Education & Technology D C D
MGM MGM Resorts International C F D
NICE NICE Ltd Sponsored ADR D C D
PAGS PagSeguro Digital Ltd. Class A D C D
TCOM Trip.com Group Ltd. Sponsored ADR D C D
WDC Western Digital Corporation D C D
XP XP Inc. Class A D C D

To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader, my proprietary stock screening tool. You may get started here.

Sincerely,
Louis Navellier

Louis Navellier

Is it Game Over for GameStop after Earnings?

GameStop Corp. (GME) had a meteoric rise in late January due to a horde of retail investors piling into the stock.

GameStop’s surge was a fascinating example of a “short squeeze.” Simply put, when traders “short” a stock, they borrow shares of the stock they think will fall over a given timeframe. If the stock drops, they give back the shares and collect the difference between the initial borrowed price and the actual sale price.

GameStop’s dramatic stock turnaround began in Reddit’s online chat forum known as WallStreetBets nearly two years ago, according to Bloomberg. Folks started chatting about what they perceived as GameStop’s undervaluation and strong cash position — a view not held by seasoned Wall Street analysts.

Then other contrarian investors, including Michael Burry, who was portrayed in the 2015 film The Big Short for his role in predicting and profiting from the subprime mortgage crisis, began taking long positions in GameStop.

Another industry report warned shares in GameStop were dangerously shorted. At one point, according to CNBC, more than 138% of the company’s tradable shares had been borrowed and sold short. This made the stock the most shorted on the U.S. stock market, according to FactSet.

In a January Market360 article, I explained why I would not recommend GME to my subscribers. The reality was the fundamentals were weak, and the stock was simply too volatile to pass my fundamental screenings.

Well, GME released earnings this week, and its results were not pretty.

After the market closed on Tuesday, GameStop, Inc.  released fourth-quarter and full-year earnings results that fell short of analysts’ expectations. During the fourth quarter, revenue fell 3.3% year-over-year to $2.12 billion, below consensus estimates of a 2.2% increase to $2.24 billion. Earnings per share rose 5.5% year-over-year to $1.34 but was still below analysts’ estimates for $1.46, so GME posted an 8.2% earnings miss.

GME dropped 33.8% after its weak fundamentals were put on center stage. Interestingly, the stock did rebound sharply on Thursday, but it ultimately ended the week lower.

The truth of the matter is GME a low-quality, volatile stock, and one I wouldn’t touch with a 10-foot pole. I look for stocks with superior fundamentals. In order words, stocks with strong earnings and sales growth, which also describes my Growth Investor Buy Lists stocks to a “T.”

My average Growth Investor stock has had its earnings revised 16.7% higher in the past three months. Typically, positive analyst revisions precede future earnings surprises. In addition, my average stock is characterized by 66.1% annual sales growth and 276.4% earnings growth, so I am expecting a spectacular first-quarter earnings announcement season for my Growth Investor stocks, with my companies set to post wave-after-wave of positive earnings results.

As always, 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. I just released four new stocks in my Growth Investor April Monthly Issue yesterday – two High-Growth stocks and two Elite Dividend Payers. Every stock earns an A-rating in Portfolio Grader, and my Elite Dividend Payers also hold an A-rating in Dividend Grader, making them rare AA-rated stocks.

For full details, click here 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:

Weekly Upgrades and Downgrades

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 220 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

This Week’s Ratings Changes:

Upgraded: From Hold to Buy
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAPL Apple Inc. B B B
ABT Abbott Laboratories B B B
AMAT Applied Materials, Inc. B B B
BCH Banco de Chile Sponsored ADR B C B
BMO Bank of Montreal B B B
BNS Bank of Nova Scotia B C B
BSAC Banco Santander-Chile Sponsored ADR B B B
CM Canadian Imperial Bank of Commerce B B B
CMCSA Comcast Corporation Class A B C B
CNHI CNH Industrial NV B B B
CNI Canadian National Railway Company B C B
CPB Campbell Soup Company B C B
DHI D.R. Horton, Inc. B B B
DHR Danaher Corporation B C B
DIS Walt Disney Company B D B
DOX Amdocs Limited A C B
EA Electronic Arts Inc. B C B
EBAY eBay Inc. B B B
EXPD Expeditors International of Washington B C B
FIVE Five Below, Inc. B C B
FND Floor & Decor Holdings, Inc. Class A B B B
FOX Fox Corporation Class B B B B
FOXA Fox Corporation Class A B B B
GLW Corning Inc C B B
HOLX Hologic, Inc. B B B
HWM Howmet Aerospace Inc. B C B
IMO Imperial Oil Limited A D B
JCI Johnson Controls International plc A C B
LH Laboratory Corporation of America Hldgs. C B B
LOW Lowe’s Companies, Inc. B B B
MFC Manulife Financial Corporation B B B
MPWR Monolithic Power Systems, Inc. B C B
NTES NetEase, Inc. Sponsored ADR A C B
NXPI NXP Semiconductors NV B B B
ON ON Semiconductor Corporation B B B
PH Parker-Hannifin Corporation B B B
PKX POSCO Sponsored ADR B B B
POOL Pool Corporation B B B
QCOM Qualcomm Inc B B B
SNP China Petroleum & Chemical Corporation C B B
STLA Stellantis N.V. A C B
SU Suncor Energy Inc. B C B
TD Toronto-Dominion Bank B C B
TTC Toro Company B B B
TTWO Take-Two Interactive Software, Inc. B C B
WBK Westpac Banking Corp Sponsored ADR B C B
WHR Whirlpool Corporation B B B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAP Advance Auto Parts, Inc. C C C
ABBV AbbVie, Inc. B C C
ABC AmerisourceBergen Corporation D B C
ADP Automatic Data Processing, Inc. C C C
AFG American Financial Group, Inc. D B C
AJG Arthur J. Gallagher & Co. C C C
AMGN Amgen Inc. C C C
AZO AutoZone, Inc. C C C
BCE BCE Inc. C C C
BDX Becton, Dickinson and Company D B C
BP BP p.l.c. Sponsored ADR D C C
BRK.B Berkshire Hathaway Inc. Class B D C C
BTI British American Tobacco PLC C C C
BURL Burlington Stores, Inc. C C C
CCEP Coca-Cola European Partners Plc C C C
CCK Crown Holdings, Inc. D C C
CHTR Charter Communications, Inc. Class A C C C
CI Cigna Corporation D B C
CINF Cincinnati Financial Corporation D B C
CLVT Clarivate PLC D C C
COO Cooper Companies, Inc. D B C
CVX Chevron Corporation C C C
DFS Discover Financial Services C B C
DGX Quest Diagnostics Incorporated C B C
EC Ecopetrol SA Sponsored ADR C C C
ENB Enbridge Inc. C C C
EQH Equitable Holdings, Inc. C D C
ETN Eaton Corp. Plc C C C
FAST Fastenal Company C C C
FTV Fortive Corp. D B C
GIB CGI Inc. Class A C C C
GPC Genuine Parts Company C B C
GWW W.W. Grainger, Inc. D C C
HD Home Depot, Inc. C C C
INCY Incyte Corporation D C C
IPG Interpublic Group of Companies, Inc. C C C
IQV IQVIA Holdings Inc D B C
IRM Iron Mountain, Inc. D B C
JNJ Johnson & Johnson C C C
JPM JPMorgan Chase & Co. D B C
KB KB Financial Group Inc. Sponsored ADR C C C
KEP Korea Electric Power Corporation B C C
KMX CarMax, Inc. C B C
LBRDA Liberty Broadband Corp. Class A C C C
LKQ LKQ Corporation D C C
MAS Masco Corporation D B C
MASI Masimo Corporation D C C
MDLZ Mondelez International, Inc. Class A D C C
MGM MGM Resorts International C F C
MHK Mohawk Industries, Inc. C C C
MNST Monster Beverage Corporation D B C
MO Altria Group Inc C C C
MOH Molina Healthcare, Inc. C D C
NVO Novo Nordisk A/S Sponsored C C C
OLED Universal Display Corporation D B C
OMC Omnicom Group Inc D C C
ORLY O’Reilly Automotive, Inc. C C C
PAYX Paychex, Inc. C C C
PBA Pembina Pipeline Corporation C D C
PCAR PACCAR Inc C C C
PFE Pfizer Inc. C C C
PG Procter & Gamble Company C C C
PGR Progressive Corporation C B C
PM Philip Morris International Inc. C C C
PPD PPD, Inc. C B C
QGEN QIAGEN NV C B C
RCI Rogers Communications Inc. Class B C C C
SHW Sherwin-Williams Company C C C
SLF Sun Life Financial Inc. C C C
STE STERIS Plc C C C
STM STMicroelectronics NV ADR RegS D B C
SYF Synchrony Financial C B C
TAK Takeda Pharmaceutical Co. Ltd. C C C
TRI Thomson Reuters Corporation C C C
TT Trane Technologies plc B C C
UNP Union Pacific Corporation C C C
VICI VICI Properties Inc D B C
VMC Vulcan Materials Company C C C
WDC Western Digital Corporation C C C
WMB Williams Companies, Inc. C C C
WPP WPP Plc Sponsored ADR D C C
XPO XPO Logistics, Inc. D B C
XYL Xylem Inc. D C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AES AES Corporation C C C
AMCR Amcor PLC D C D
AMD Advanced Micro Devices, Inc. C A C
CGC Canopy Growth Corporation B D C
CGNX Cognex Corporation C C C
CHRW C.H. Robinson Worldwide, Inc. C B C
CLX Clorox Company C C C
COUP Coupa Software, Inc. C C C
CTVA Corteva Inc C C C
DB Deutsche Bank AG C C C
DG Dollar General Corporation C C C
DT Dynatrace, Inc. C B C
E Eni S.p.A. Sponsored ADR C C C
EOG EOG Resources, Inc. C C C
EPD Enterprise Products Partners L.P. B D C
ESTC Elastic NV C B C
FFIV F5 Networks, Inc. B C C
FTNT Fortinet, Inc. C B C
GDS GDS Holdings Ltd. Sponsored C C C
HES Hess Corporation C C C
HRL Hormel Foods Corporation C C C
ILMN Illumina, Inc. C C C
IPGP IPG Photonics Corporation C C C
KDP Keurig Dr Pepper Inc. D C D
LNG Cheniere Energy, Inc. C D C
LYB LyondellBasell Industries NV C B C
MFG Mizuho Financial Group Inc C C C
NEM Newmont Corporation C C C
NFLX Netflix, Inc. C C C
NKE NIKE, Inc. Class B C B C
NMR Nomura Holdings, Inc. Sponsored ADR C B C
NWL Newell Brands Inc C C C
ORCL Oracle Corporation C B C
PKG Packaging Corporation of America D D D
PTC PTC Inc. C C C
RF Regions Financial Corporation C B C
RNG RingCentral, Inc. Class A C C C
SGEN Seagen, Inc. C B C
TDOC Teladoc Health, Inc. C D C
TEAM Atlassian Corp. Plc Class A C D C
TECH Bio-Techne Corporation B C C
TS Tenaris S.A. Sponsored ADR C C C
UPS United Parcel Service, Inc. Class B C C C
WLK Westlake Chemical Corporation C B C
WORK Slack Technologies, Inc. Class A D C D
WPM Wheaton Precious Metals Corp C C C
XLNX Xilinx, Inc. C C C
YUMC Yum China Holdings, Inc. D B C
Z Zillow Group, Inc. Class C C C C
ZEN Zendesk, Inc. C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ANET Arista Networks, Inc. D C D
APH Amphenol Corporation Class A D C D
BF.A Brown-Forman Corporation Class A D C D
CABO Cable One, Inc. F B D
CAJ Canon Inc. Sponsored ADR D B D
CG Carlyle Group Inc F B D
CRM salesforce.com, inc. D C D
CSCO Cisco Systems, Inc. D C D
CTXS Citrix Systems, Inc. F C D
DISH DISH Network Corporation Class A D B D
DLTR Dollar Tree, Inc. D B D
DXCM DexCom, Inc. D C D
GOLD Barrick Gold Corporation D C D
HAS Hasbro, Inc. D C D
HMC Honda Motor Co., Ltd. Sponsored ADR F B D
LBTYA Liberty Global Plc Class A D C D
LULU Lululemon Athletica Inc D C D
LYFT Lyft Inc Class A D D D
MCHP Microchip Technology Incorporated D C D
MCK McKesson Corporation D D D
MTD Mettler-Toledo International Inc. D C D
NDSN Nordson Corporation D B D
NOK Nokia Oyj Sponsored ADR D D D
ORAN Orange SA Sponsored ADR F C D
PSX Phillips 66 D F D
RACE Ferrari NV F B D
STZ Constellation Brands, Inc. Class A F A D
TEF Telefonica SA Sponsored ADR F B D
TFC Truist Financial Corporation D B D
TM Toyota Motor Corp. Sponsored ADR D C D
TSN Tyson Foods, Inc. Class A D C D
UBER Uber Technologies, Inc. D D D
VMW VMware, Inc. Class A F B D
VOD Vodafone Group Plc Sponsored ADR D C D
WDAY Workday, Inc. Class A D C D
ZTO ZTO Express (Cayman), Inc. D C D

To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader, my proprietary stock screening tool. You may get started here.

Sincerely,
Louis Navellier

Louis Navellier

Even After VW’s “Power Day,” I Prefer This EV Stock

In case you missed it, Volkswagen Group (VWAGY) held its “Power Day” on Monday and announced several exciting developments with their electric vehicle (EV) models.

During the event, Volkswagen focused on their efforts to reduce the cost of producing the batteries for their vehicles by up to 50%, which would make their EVs a more affordable option. This is in efforts to accelerate the shift away from gas-powered cars.

The company, which is the second-largest automaker in the world based on sales, also announced that they are going to build multiple battery factories around the world and greatly expand their network of charging stations.

Their ultimate goal, however, is to shift to solid-state battery technology, which has longer range and quicker charging times, and are the two largest hurdles for mass EV implementation.

Of course, Volkswagen’s “Power Day” is a response to Tesla, Inc. (TSLA)’s “Battery Day” held last year, which touched on many of the same topics, like battery improvements, charging and ways to make EV more affordable.

However, it seems that Volkswagen is now crushing Tesla in every category. While Tesla may have up to three gigafactories in conjunction with new manufacturing plants, VW is opening six gigafactories in Europe alone.  VW is also intending to have more charging stations than Tesla in China and Europe, which will charge their EVs faster due to better cooling for their EVs.

While Tesla tends to make the headlines with their flash, VW Group already has more EV models than TSLA, and with their Audi and Porsche brands, now has 13 EV models that will soon expand to 25 in the coming years. I think this sets VW group on track to pass Tesla in worldwide EV sales by 2023.

The bottom line: VW is striving to beat Tesla by having substantially more models, faster charging, more gigafactories, more manufacturing plants and cheaper EVs as well as luxury EVs with solid-state batteries.

And based on VWAGY’s stock performance, investors are clearly excited. The stock soared more than 21% this week, while TSLA slipped more than 6.5%.

But don’t let me mislead you into thinking I am backing VWAGY – I have found a much better horse in the EV race.

My Pick for the Electric Vehicle Industry

It’s clear that the automobile industry is also slowly turning into a battery-making industry! While my pick for the industry may not be as flashy as TSLA or even Volkswagen, I believe it provides an even better opportunity.

I’m talking about Generac Holdings, Inc. (GNRC).

It was the first company to develop generators for home use back in 1959 in Wales, Wisconsin. Founder Robert Kern started the company with only five employees and his own personal generator designs. Thanks to a strategic, decades-long partnership with Sears, the company’s generators were marketed under the Craftsman brand well into the 1990s.

Today, Generac is the number-one manufacturer of home backup generators, which are now marketed under the Guardian brand. In addition to its home backup generators, the company also offers portable generators, pressure washers, water pumps, transfer switches and other parts and accessories.

Generac has also developed its own clean energy power storage system, PWRcell. The PWRcell stores energy from solar panels or the electric grid, ensuring that your home is never without power in rolling blackouts or other power outage situations. The system can provide up to 11 kilowatts of backup power.

Natural gas is now banned in all new residential construction in California, and solar is mandatory. But renewable energy has yet to replace the closed power plants’ output. In fact, California Governor Gavin Newsom admitted that, by shutting down big natural gas plants, the state was not fully prepared for the shift to alternative energy.

The state has approved a massive lithium battery storage facility in Moss Landing, and another is anticipated in Morro Bay. However, the acute shortage of lithium batteries has delayed the completion of these storage facilities, and, in turn, has strained California’s electric grid. The good news is that California’s power conundrum could accelerate the adoption of more home lithium battery packs, which is great news for GNRC.

So, more and more Californians are rushing to install either Generac’s or Tesla’s backup power systems. But, given Generac’s vast dealer network and strong fundamentals, expect Generac to beat Tesla. Just take a look at its latest earnings report.

Generac Holdings released record fourth-quarter results on February 11. Fourth-quarter sales jumped 29% year-over-year to $761 million, up from $591 million in the same quarter a year ago. Residential product sales accounted for $499 million, up from $323 million in the fourth quarter of 2019.

Generac Holdings also reported fourth-quarter adjusted earnings of $136 million, or $2.12 per share, compared to $97 million, or $1.53 per share, in the fourth quarter of 2019. The analyst community was expecting adjusted earnings of $1.96 per share on $731.23 million in sales, so GNRC posted an 8.2% earnings surprise and a 4.1% sales surprise.

For fiscal year 2020, Generac Holding achieved total sales of $2.5 billion, or 13% annual sales growth. Residential product sales grew 36% year-over-year to $1.56 billion. Full-year adjusted earnings came in at $412 million, or $6.47 per share, which represented 29.6% annual earnings growth. These results also topped forecasts for adjusted earnings of $6.31 per share and sales of $2.46 billion.

Looking forward, company management expects “2021 to be another very strong year given the significant momentum for our residential products and an expected return to growth for our C&I products.” As a result, Generac Holdings expects full-year sales growth between 25% and 30%.

GNRC is the perfect example of the type of growing company that investors will rotate to as Wall Street looks past the hype and focuses more on company fundamentals.

This is especially important as the first-quarter earnings season kicks off in mid-April. This will be another phenomenal earnings season, thanks to easy year-over-year comparisons. I look for GNRC to post another strong earnings quarter, as well as my Growth Investor Buy Lists stocks. They are chock full of fundamentally superior companies, and I expect investors to gravitate to my high-quality stocks and drive them higher as they post wave-after-wave of positive earnings.

If you want to get into position to ride the next earnings wave, please join me at Growth Investor today.

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:

Generac Holdings, Inc. (GNRC)

Weekly Upgrades and Downgrades

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 172 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

This Week’s Ratings Changes:

Upgraded: From Hold to Buy
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABB ABB Ltd. Sponsored ADR B C B
AEM Agnico Eagle Mines Limited A D B
AES AES Corporation B C B
AMCR Amcor PLC A C B
CHD Church & Dwight Co., Inc. A C B
CNQ Canadian Natural Resources Limited B B B
CVE Cenovus Energy Inc. B D B
DBX Dropbox, Inc. Class A B C B
DG Dollar General Corporation B C B
E Eni S.p.A. Sponsored ADR B C B
EMR Emerson Electric Co. B C B
EOG EOG Resources, Inc. B C B
EQNR Equinor ASA Sponsored ADR B C B
FANG Diamondback Energy, Inc. B D B
GIS General Mills, Inc. B C B
HES Hess Corporation B C B
KDP Keurig Dr Pepper Inc. B C B
LYB LyondellBasell Industries NV B B B
MFG Mizuho Financial Group Inc Sponsored ADR B C B
NEM Newmont Corporation B C B
NKE NIKE, Inc. Class B B C B
PXD Pioneer Natural Resources Company A C B
SJM J.M. Smucker Company B C B
TS Tenaris S.A. Sponsored ADR B C B
WORK Slack Technologies, Inc. Class A B C B
WPM Wheaton Precious Metals Corp B B B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AZN Astrazeneca PLC Sponsored ADR D B C
BF.A Brown-Forman Corporation Class A C C C
BIP Brookfield Infrastructure Partners L.P. D B C
CABO Cable One, Inc. D C C
CAJ Canon Inc. Sponsored ADR C B C
CPB Campbell Soup Company D C C
DISH DISH Network Corporation Class A C B C
ET Energy Transfer, L.P. C D C
EXR Extra Space Storage Inc. D B C
GOLD Barrick Gold Corporation C C C
HAS Hasbro, Inc. C C C
HMC Honda Motor Co., Ltd. Sponsored ADR D B C
IMO Imperial Oil Limited B D C
MKC McCormick & Company, Incorporated C C C
NOK Nokia Oyj Sponsored ADR C D C
OKE ONEOK, Inc. C C C
ORAN Orange SA Sponsored ADR C C C
PSX Phillips 66 C F C
SU Suncor Energy Inc. C C C
TAP.A Molson Coors Beverage Company Class A C F C
TEF Telefonica SA Sponsored ADR D B C
TSN Tyson Foods, Inc. Class A B C C
TU TELUS Corporation C C C
VOD Vodafone Group Plc Sponsored ADR C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAPL Apple Inc. C B C
ABT Abbott Laboratories C B C
ADSK Autodesk, Inc. C B C
AMAT Applied Materials, Inc. C B C
AOS A. O. Smith Corporation D B C
AVLR Avalara Inc C C C
BCH Banco de Chile Sponsored ADR C C C
BLK BlackRock, Inc. C C C
BR Broadridge Financial Solutions, Inc. D B C
BSAC Banco Santander-Chile Sponsored ADR C B C
BWA BorgWarner Inc. C B C
CMCSA Comcast Corporation Class A C C C
DHR Danaher Corporation C C C
DIS Walt Disney Company B D C
DLTR Dollar Tree, Inc. C B C
EDU New Oriental Education & Technology Group, Inc. C C C
EL Estee Lauder Companies Inc. Class A C B C
F Ford Motor Company C C C
FIVE Five Below, Inc. C B C
FRC First Republic Bank C C C
GLW Corning Inc C B C
GM General Motors Company C B C
GPS Gap, Inc. C C C
GS Goldman Sachs Group, Inc. C B C
HOLX Hologic, Inc. C B C
IP International Paper Company C C C
JCI Johnson Controls International plc C B C
KEYS Keysight Technologies Inc C C C
KKR KKR & Co. Inc. D B C
KLAC KLA Corporation C C C
MPWR Monolithic Power Systems, Inc. C C C
MSFT Microsoft Corporation C B C
MTD Mettler-Toledo International Inc. C C C
NTES NetEase, Inc. Sponsored ADR B C C
ON ON Semiconductor Corporation C B C
PH Parker-Hannifin Corporation C B C
PKX POSCO Sponsored ADR C B C
POOL Pool Corporation C B C
QCOM Qualcomm Inc C B C
RDY Dr. Reddy’s Laboratories Ltd. Sponsored ADR B C C
RJF Raymond James Financial, Inc. C B C
SNP China Petroleum & Chemical Corporation C B C
SNPS Synopsys, Inc. C C C
STX Seagate Technology PLC C C C
TEL TE Connectivity Ltd. C B C
TER Teradyne, Inc. C C C
TPR Tapestry, Inc. C C C
TROW T. Rowe Price Group C B C
TTWO Take-Two Interactive Software, Inc. C C C
UAA Under Armour, Inc. Class A C B C
UHAL AMERCO C B C
WRK WestRock Company B C C
ZNGA Zynga Inc. Class A B C C
ZTO ZTO Express (Cayman), Inc. Sponsored C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAL American Airlines Group, Inc. D D D
ABBV AbbVie, Inc. D C D
ABC AmerisourceBergen Corporation D B D
ADBE Adobe Inc. D B D
AJG Arthur J. Gallagher & Co. D C D
ANSS ANSYS, Inc. D C D
APO Apollo Global Management Inc. Class A F B D
BAC Bank of America Corp D C D
BDX Becton, Dickinson and Company F B D
BRK.A Berkshire Hathaway Inc. Class A D C D
BRK.B Berkshire Hathaway Inc. Class B D C D
CDW CDW Corp. D B D
CINF Cincinnati Financial Corporation F B D
CPRT Copart, Inc. D C D
DFS Discover Financial Services D B D
EQH Equitable Holdings, Inc. D D D
ETN Eaton Corp. Plc D C D
FAST Fastenal Company D C D
GPC Genuine Parts Company F B D
GWW W.W. Grainger, Inc. D C D
HUBB Hubbell Incorporated Class B D C D
IBN ICICI Bank Limited Sponsored ADR F B D
INCY Incyte Corporation D C D
INTU Intuit Inc. D D D
IPG Interpublic Group of Companies, Inc. D C D
IQV IQVIA Holdings Inc D B D
IRM Iron Mountain, Inc. D B D
IT Gartner, Inc. D B D
JPM JPMorgan Chase & Co. D B D
KB KB Financial Group Inc. Sponsored ADR D C D
KEY KeyCorp D B D
KMX CarMax, Inc. D B D
LBRDK Liberty Broadband Corp. Class C D C D
LEVI Levi Strauss & Co. Class A D C D
LKQ LKQ Corporation D C D
LNC Lincoln National Corporation D D D
LYV Live Nation Entertainment, Inc. D D D
MAS Masco Corporation F B D
MASI Masimo Corporation D C D
MET MetLife, Inc. D C D
MHK Mohawk Industries, Inc. D C D
MNST Monster Beverage Corporation D B D
MOH Molina Healthcare, Inc. D D D
MSCI MSCI Inc. Class A D C D
MTB M&T Bank Corporation D C D
NTRS Northern Trust Corporation D D D
OMC Omnicom Group Inc F C D
ORLY O’Reilly Automotive, Inc. F C D
PCAR PACCAR Inc D C D
PGR Progressive Corporation D B D
PODD Insulet Corporation D D D
PPG PPG Industries, Inc. D C D
QGEN QIAGEN NV D B D
RYAAY Ryanair Holdings Plc Sponsored ADR D F D
SBUX Starbucks Corporation D C D
SHW Sherwin-Williams Company D C D
STM STMicroelectronics NV ADR RegS D B D
STNE StoneCo Ltd. Class A D C D
STT State Street Corporation D C D
SYF Synchrony Financial D B D
TAL TAL Education Group Sponsored ADR Class A D D D
TT Trane Technologies plc D C D
UNP Union Pacific Corporation D C D
VMC Vulcan Materials Company D C D
WMB Williams Companies, Inc. D C D
WPP WPP Plc Sponsored ADR D C D
XPO XPO Logistics, Inc. D B D
XYL Xylem Inc. D C D

To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader, my proprietary stock screening tool. You may get started here.

Sincerely,
Louis Navellier

Louis Navellier

These Two Chinese Companies Popped on Earnings This Week

I’d never have expected to say this, but some of the most exciting opportunities I’ve been finding recently are Chinese stocks. Prior to that, I’d been primarily invested in U.S. stocks for a good, long while. But when my Portfolio Grader scans started picking up “Strong Buys” in China, I jumped on them. And the results have been extremely gratifying.

Since China has largely recovered from the coronavirus, its economy is booming. The first two months of this year has already been record-breaking for China, with export production records at their highest in decades.

Chinese companies, especially the dominant e-commerce companies, have been showing huge growth so far this earnings season. For example, Alibaba Group Holdings (BABA) reported earnings last month and showed 37% sales growth and 52% earnings growth for the fourth quarter.

Two other Chinese companies posted their earnings results this week, and neither disappointed. So, let’s take a look at their numbers in today’s Market360 article.

Daqo New Energy Corporation (DQ) was up to bat first on Tuesday. The company is one of the lowest cost producers of high-purity silicon in the world. So, it’s not too surprising that Daqo New Energy’s polysilicon and solar wafers are in top demand with the solar PV industry, which utilize the products to develop solar power solutions.

During the fourth quarter, polysilicon production jumped to a record 21,008 metric tons, up from 18,406 metric tons in the third quarter, and polysilicon sales rose to 23,186 metric tons, up from 13,643 metric tons in the third quarter.

Fourth-quarter revenue soared 108.3% year-over-year to $247.7 million, while adjusted earnings surged 205.7% year-over-year to $1.07 per ADS. That compares to earnings of $0.35 per ADS and revenue of $118.9 million in the same quarter a year ago. The analyst community was looking for adjusted earnings of $1.15 per ADS on revenue of $232.16 million. So, Daqo New Energy posted a 7% earnings miss and a 6.7% revenue surprise.

For fiscal year 2020, Daqo New Energy achieved adjusted earnings per ADS of $2.07 and revenue of $675.6 million. That represented 195.7% annual earnings growth and 93% annual revenue growth. Analysts were expecting full year adjusted earnings of $1.99 per ADS and revenue of $690.58 million.

The stock has soared 26% since releasing its quarterly report, but given the increased demand for its products, I believe there’s further upside ahead.

Then JD.com (JD) surged out of the gates on Thursday morning, following the company’s announcement that “JD saw accelerated revenue and user growth during the fourth quarter.” At the end of the fourth quarter, JD had 471.9 million active customer accounts, up 30.3% from 362 million at the end of 2019.

For the fourth quarter, JD reported earnings of $0.23 per ADS on $34.4 billion in revenue. That represented 187.5% year-over-year earnings growth and 41% year-over-year revenue growth. The consensus estimate called for earnings of $0.19 per ADS and revenue of $33.78 billion, so JD posted a 21% earnings surprise and a slight revenue surprise.

During fiscal year 2020, JD achieved revenue of $114.3 billion and earnings of $1.62 per ADS. That compares to analysts’ estimates for full-year revenue of $113.85 billion and earnings of $1.63 per ADS.

The bottom line: Chinese companies are the first out of the coronavirus gate, and it is showing during this earnings season. I always put my faith in the numbers. And what the numbers are telling me is that there are some great buys here right now.

All in all, my Model Portfolio Buy List is currently sitting at about a 77% return.

If you’re interested in my latest recommendations and want to get into position to take with fundamentally superior stocks, now is the time to join me here at Platinum Growth Club. My Model Portfolio and Buy Lists will be ripe for the picking, especially in the wake of their better-than-expected fourth-quarter earnings.

And there are a lot of stocks to pick from. I have more than 100 stocks across all my services to choose from, and as a Platinum Growth Club subscriber, you have full access to each and every one. (I unveiled an options service just last Wednesday, Power Options, which is also included in your membership. This is a very straightforward options trading service, designed for brand-new investors and old pros alike.)

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.

If you’re interested, click here for full details. If you decide to join today, not only will you have instant access to all my recommendations, but you’ll be just in time for my latest Platinum Growth Club Live Chat Event, set to take place next Monday, March 15, at noon. I will be covering my current market outlook and the fourth-quarter earnings season.

I will also review the market on the anniversary of the coronavirus lockdowns, what Wall Street is worrying about right now (and whether you should be worried, too) and give updates on several Platinum Growth Club Model Portfolio stocks. I will also take some time at the end to answer my subscribers’ questions. If you sign up now, you can send me your questions early.

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:

JD.com, Inc. (JD), Daqo New Energy Corp. (DQ)

Weekly Upgrades and Downgrades

During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 128 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

This Week’s Ratings Changes:

Upgraded: From Hold to Buy
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BCH Banco de Chile Sponsored ADR B C B
BLK BlackRock, Inc. B C B
BSAC Banco Santander-Chile Sponsored ADR B B B
BWA BorgWarner Inc. B B B
CLR Continental Resources, Inc. B D B
CMCSA Comcast Corporation Class A B C B
CQP Cheniere Energy Partners, L.P. B C B
DB Deutsche Bank AG B C B
DIS Walt Disney Company B D B
DLTR Dollar Tree, Inc. B B B
F Ford Motor Company B C B
GM General Motors Company B B B
GPS Gap, Inc. B C B
GS Goldman Sachs Group, Inc. B B B
HAL Halliburton Company B B B
HOLX Hologic, Inc. B B B
IP International Paper Company B C B
IR Ingersoll Rand Inc. B B B
IVZ Invesco Ltd. B B B
JCI Johnson Controls International plc B B B
LNG Cheniere Energy, Inc. B D B
MRO Marathon Oil Corporation B C B
MT ArcelorMittal SA ADR B B B
NTR Nutrien Ltd. B B B
NWL Newell Brands Inc B C B
PH Parker-Hannifin Corporation B B B
RJF Raymond James Financial, Inc. B B B
SNP China Petroleum & Chemical Corporation B B B
TPR Tapestry, Inc. B C B
TROW T. Rowe Price Group B B B
UAA Under Armour, Inc. Class A B B B
UBS UBS Group AG B B B
WLK Westlake Chemical Corporation B B B
WRK WestRock Company B C B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAL American Airlines Group, Inc. C D C
BAC Bank of America Corp C C C
BCS Barclays PLC Sponsored ADR D C C
BNS Bank of Nova Scotia C C C
BRK.B Berkshire Hathaway Inc. Class B D C C
COP ConocoPhillips C D C
CVE Cenovus Energy Inc. C D C
E Eni S.p.A. Sponsored ADR D B C
EOG EOG Resources, Inc. C C C
EQH Equitable Holdings, Inc. C D C
EXPE Expedia Group, Inc. C F C
FOX Fox Corporation Class B C B C
GE General Electric Company C C C
GPC Genuine Parts Company D B C
HPE Hewlett Packard Enterprise Co. D B C
HWM Howmet Aerospace Inc. C C C
IBN ICICI Bank Limited Sponsored ADR D B C
INFO IHS Markit Ltd. C C C
ING ING Groep NV Sponsored ADR C B C
IPG Interpublic Group of Companies, Inc. C C C
KB KB Financial Group Inc. Sponsored ADR C C C
KDP Keurig Dr Pepper Inc. C C C
LBRDK Liberty Broadband Corp. Class C D C C
LNC Lincoln National Corporation C D C
LUMN Lumen Technologies, Inc. C D C
MET MetLife, Inc. C C C
MFC Manulife Financial Corporation D B C
MPC Marathon Petroleum Corporation C C C
MTB M&T Bank Corporation C C C
MUFG Mitsubishi UFJ Financial Group, Inc. D B C
NTRS Northern Trust Corporation C D C
OMC Omnicom Group Inc D C C
ORLY O’Reilly Automotive, Inc. D C C
OXY Occidental Petroleum Corporation C C C
PPG PPG Industries, Inc. C C C
RY Royal Bank of Canada D C C
SLB Schlumberger NV C C C
SMFG Sumitomo Mitsui Financial Group, Inc. C B C
STT State Street Corporation C C C
SWK Stanley Black & Decker, Inc. D B C
TXT Textron Inc. D B C
WMB Williams Companies, Inc. C C C
WPP WPP Plc Sponsored ADR D C C
XOM Exxon Mobil Corporation C D C
XRAY DENTSPLY SIRONA, Inc. C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ANET Arista Networks, Inc. C C C
CHD Church & Dwight Co., Inc. C C C
CTXS Citrix Systems, Inc. C C C
DG Dollar General Corporation C C C
EA Electronic Arts Inc. C C C
EBAY eBay Inc. C B C
GGG Graco Inc. C B C
GIS General Mills, Inc. C C C
GMAB Genmab A/S Sponsored ADR C D C
LRCX Lam Research Corporation C B C
MASI Masimo Corporation C C C
MOH Molina Healthcare, Inc. B D C
MRVL Marvell Technology Group Ltd. B D C
NOW ServiceNow, Inc. B C C
QGEN QIAGEN NV C B C
ROL Rollins, Inc. C B C
SEDG SolarEdge Technologies, Inc. B D C
SJM J.M. Smucker Company C C C
STNE StoneCo Ltd. Class A C C C
TREX Trex Company, Inc. C C C
TTC Toro Company C B C
TYL Tyler Technologies, Inc. C C C
WAT Waters Corporation C C C
WMT Walmart Inc. C D C
WORK Slack Technologies, Inc. Class A B C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AKAM Akamai Technologies, Inc. D C D
AMGN Amgen Inc. D C D
AZN Astrazeneca PLC Sponsored ADR D B D
CABO Cable One, Inc. D B D
CCK Crown Holdings, Inc. D B D
CL Colgate-Palmolive Company D C D
CLVT Clarivate PLC F C D
CPB Campbell Soup Company D B D
DLR Digital Realty Trust, Inc. D C D
DVA DaVita Inc. D C D
EXR Extra Space Storage Inc. D B D
FNV Franco-Nevada Corporation D B D
ICE Intercontinental Exchange, Inc. D C D
ISRG Intuitive Surgical, Inc. D C D
JNJ Johnson & Johnson D C D
LIN Linde plc D C D
MKC McCormick & Company, Incorporated D C D
MO Altria Group Inc D C D
NVO Novo Nordisk A/S Sponsored D C D
RMD ResMed Inc. D C D
TRV Travelers Companies, Inc. D B D
WBA Walgreens Boots Alliance Inc D D D

To stay on top of my latest stock ratings, plug your holdings into Portfolio Grader, my proprietary stock screening tool. You may get started here.

Sincerely,
Louis Navellier

Louis Navellier

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