How to Benefit from Company Buybacks and Earnings

The first quarter wasn’t just a record one for earnings and sales growth. It was also a record quarter of stock buybacks.

More than $500 billion in stock buybacks have been authorized in 2021 so far, which represents the fastest pace for stock buybacks in 22 years, according to the Wall Street Journal. Interestingly, this “buyback bonanza” isn’t showing any signs of abating any time soon either. Stock buybacks are anticipated to increase by at least 35% year-over-year in 2021.

The technology sector is leading buybacks and makes up 31.6%, or $56.4 billion of all repurchases for the first quarter of 2021. Second is the financial sector with 20% of buybacks. Healthcare took third place with 11.4% of all buybacks in the first quarter.

The top three largest corporate buybacks so far in 2021 were Apple Inc. (AAPL) with $18.8 billion; Alphabet Inc. (GOOGL) with $11.4 billion; and Microsoft Corporation (MSFT) with $7 billion, according to Forbes.

This is important to note because cash-rich companies in the S&P 500 that are buying back their stock naturally outperform the overall S&P 500. In the case of GOOGL and MSFT, they’re up 38% and 17%, respectively, year-to-date. The S&P 500 gained 11% during the same time period, while AAPL is down 1%. So, only AAPL is lagging the S&P 500.

The reason why stock buybacks are so effective is that they reduce the number of shares outstanding—and that provides a solid foundation under these stocks. So, as we enter the bumpy summer months, stocks with aggressive buyback programs, as well as generous dividend payments, will be more resilient to the market’s swings.

Now, the record pace of stock buybacks is great news, as it demonstrates that Corporate America is taking advantage of ultralow interest rates to refinance its existing debt and add to its cash reserves. Since the average return on equity (ROE) at most S&P 500 companies is much higher than money market rates, the finance executives at these companies tend to use excess cash to repurchase outstanding stock to boost returns and underlying earnings per share.

In fact, the massive amount of stock buybacks in the first quarter is one of the reasons why most companies posted better-than-expected earnings. FactSet reported that 86% of S&P 500 companies exceeded analysts’ first-quarter earnings estimates, and first-quarter earnings grew at an average 51.9% pace, or the highest year-over-year earnings growth rate in more than a decade.

Given that the relentless pace of stock buybacks has continued in the second quarter, as well as easier year-over-year comparisons, analysts are expecting even more spectacular earnings growth in the second quarter than the first. FactSet currently estimates that second-quarter earnings will soar 61% year-over-year, and sales are forecast to grow 19.3%.

Now, let’s focus on Apple for a moment. Over the last five years, Apple has spent $319.2 billion on buybacks and during that time, the company’s stock has almost quintupled in value. In its most-recent earnings conference call, the company announced that its board of directors approved a $90 billion increase in its buyback program.

While AAPL may have the largest buyback program, I’m not interested in it as a dividend or growth stock. I think there are fundamentally superior opportunities out there.

Case in point: DICK’S Sporting Goods, Inc. (DKS), one of my Growth Investor Elite Dividend Payers stocks. It exemplifies strong fundamentals and a great buyback program. Here’s what I mean…

DICK’S Sporting Goods is a successful outdoor and sports goods retailer. Today, there are nearly 730 DICK’S Sporting Goods retail locations in the U.S. The company also operates Golf Galaxy and Field & Stream specialty stores, as well as an e-commerce platform. And in the past year, DICK’S Sporting Goods experienced record demand at its brick-and-mortar stores and through its online storefront.

During the first quarter, sales soared 119% year-over-year to $2.92 billion. DICK’S noted that the increase in sales was driven by a 115% jump in same store sales. Online sales rose 110% year-over-year in the first quarter. First-quarter earnings surged to $367.2 million, or $3.79 per share, up from an earnings loss in the first quarter of 2020.

The analyst community was expecting earnings of $1.12 per share on $2.18 billion in sales. So, DICK’S posted a whopping 238.4% earnings surprise and a 34% sales surprise. DICK’S announced that it will pay a quarterly dividend of $0.36 per share on June 25. So, all shareholders of record on June 11 will receive the dividend.

Company management commented, “We are in a great lane right now, and 2021 will be our boldest and most transformational year in the company’s history.” As a result, DICK’S upped its outlook for fiscal year 2021. Full-year sales are expected to be between $10.52 billion and $10.81 billion, up from $9.58 billion in 2020. Full-year earnings per share are forecast to be between $7.05 and $7.68, up from $5.72 per share in fiscal year 2020.

In terms of buybacks, the company estimated a minimum guidance of $200 million for buybacks in 2021. So far in 2021, it has  purchased $76.8 million in buybacks. Take a look at DICK’s year-to-date buyback chart:

IMAGE

As you can see, the company is recovering rapidly from the effects of the pandemic and is now increasing its buyback program. So, it’s no wonder that I made DICK’S my number-one Elite Dividend Payer for June. The truth of the matter is it offers a nice blend of growth and income, which is why it earns an AA-rating (an A-rating in my Portfolio Grader and an A-rating in my Dividend Grader).

Now, let’s compare DICK’S to Apple and see how they stack up in Dividend Grader. (DKS’ Report Card is on the left and AAPL’s is on the right.)

IMAGE IMAGE

As you can see, DKS earns an A-rating for its Total Grade. AAPL, on the other hand, earns a B-rating. DKS also holds an A-rating for its Quantitative Grade, while AAPL has a lowly D-rating, indicating weak buying pressure. So, while AAPL is a buy right now, DKS’ is clearly the stronger buy.

It’s also significantly outperformed AAPL this year, up 63% year-to-date, while AAPL is about flat over the same time period.

This is just one of many fundamentally superior companies with robust buyback programs at Growth Investor. If you’re interested in my Top 3 Stocks list of Elite Dividend Payers, as well as full access to my Elite Dividend Payers Buy List, click here. This Buy List is also chock full of companies that reward shareholders with consistent and growing quarterly dividends.

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 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:

DICK’S Sporting Goods, Inc. (DKS)

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 155 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
AAP Advance Auto Parts, Inc. B B B
ADP Automatic Data Processing, Inc. A C B
AFL Aflac Incorporated B B B
AGR Avangrid, Inc. B C B
ATH Athene Holding Ltd. Class A B C B
CCK Crown Holdings, Inc. B C B
DGX Quest Diagnostics Incorporated B B B
DVA DaVita Inc. B C B
ENB Enbridge Inc. B C B
EPD Enterprise Products Partners L.P. B C B
ET Energy Transfer, L.P. C B B
EXPE Expedia Group, Inc. B C B
GFL GFL Environmental Inc B C B
HDB HDFC Bank Limited Sponsored ADR B C B
HIG Hartford Financial Services Group, Inc. B D B
JAZZ Jazz Pharmaceuticals Public Limited A C B
KMI Kinder Morgan Inc Class P C B B
L Loews Corporation B B B
LLY Eli Lilly and Company B C B
MMM 3M Company B C B
MPC Marathon Petroleum Corporation B C B
MSI Motorola Solutions, Inc. B C B
MTD Mettler-Toledo International Inc. B C B
OKE ONEOK, Inc. B B B
OMC Omnicom Group Inc B C B
PKG Packaging Corporation of America B C B
PKI PerkinElmer, Inc. B B B
PM Philip Morris International Inc. B C B
SHG Shinhan Financial Group Co., Ltd. Sponsored ADR B C B
SPG Simon Property Group, Inc. B C B
TEL TE Connectivity Ltd. B B B
WPP WPP Plc Sponsored ADR B C B
XRAY DENTSPLY SIRONA, Inc. B B B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
APH Amphenol Corporation Class A C C C
AZN Astrazeneca PLC Sponsored ADR D C C
BIIB Biogen Inc. C D C
BMY Bristol-Myers Squibb Company C C C
BP BP p.l.c. Sponsored ADR D C C
BTI British American Tobacco PLC D C C
CME CME Group Inc. Class A C D C
DAL Delta Air Lines, Inc. C D C
EC Ecopetrol SA Sponsored ADR D A C
EW Edwards Lifesciences Corporation D C C
GL Globe Life Inc. C C C
HST Host Hotels & Resorts, Inc. C C C
IBM International Business Machines C C C
ILMN Illumina, Inc. D C C
KO Coca-Cola Company C C C
LYV Live Nation Entertainment, Inc. C C C
NI NiSource Inc C C C
NOC Northrop Grumman Corporation D B C
PBA Pembina Pipeline Corporation C D C
PEAK Healthpeak Properties, Inc. C C C
PPL PPL Corporation C D C
RDS.A Royal Dutch Shell Plc Sponsored D C C
RSG Republic Services, Inc. C C C
RYAAY Ryanair Holdings Plc Sponsored ADR C D C
STE STERIS Plc C D C
TCOM Trip.com Group Ltd. Sponsored ADR D C C
TRP TC Energy Corporation C D C
TYL Tyler Technologies, Inc. C C C
VLO Valero Energy Corporation C C C
WEC WEC Energy Group Inc C C C
WM Waste Management, Inc. C C C
WRB W. R. Berkley Corporation D B C
XOM Exxon Mobil Corporation C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAPL Apple Inc. D B C
ATVI Activision Blizzard, Inc. C C C
BBL BHP Group Plc Sponsored ADR C C C
BEN Franklin Resources, Inc. C B C
BIDU Baidu Inc Sponsored ADR Class A C B C
BILL Bill.com Holdings, Inc. C B C
CNP CenterPoint Energy, Inc. C C C
DB Deutsche Bank AG C B C
DOCU DocuSign, Inc. C B C
ETSY Etsy, Inc. C B C
GLW Corning Inc C B C
GRMN Garmin Ltd. C C C
HPE Hewlett Packard Enterprise Co. C B C
IBN ICICI Bank Limited Sponsored ADR C B C
ING ING Groep NV Sponsored ADR C B C
INTU Intuit Inc. C C C
LEN.B Lennar Corporation Class B C B C
LPLA LPL Financial Holdings Inc. C C C
MET MetLife, Inc. B D C
MFG Mizuho Financial Group Inc C C C
NEM Newmont Corporation B D C
NVDA NVIDIA Corporation C B C
PPD PPD, Inc. C B C
SJM J.M. Smucker Company B D C
SONY Sony Group Corporation Sponsored ADR C B C
SQ Square, Inc. Class A C B C
TMUS T-Mobile US, Inc. C C C
TSCO Tractor Supply Company C B C
TTWO Take-Two Interactive Software, Inc. C C C
TWTR Twitter, Inc. C C C
TXN Texas Instruments Incorporated C C C
URI United Rentals, Inc. B C C
VIPS Vipshop Holdings Ltd Sponsored ADR C B C
W Wayfair, Inc. Class A C C C
YNDX Yandex NV Class A B D C
YUMC Yum China Holdings, Inc. C B C
ZBRA Zebra Technologies Corporation Class A C B C
ZLAB Zai Lab Ltd. Sponsored ADR B D C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ADBE Adobe Inc. D C D
AKAM Akamai Technologies, Inc. D C D
AMZN Amazon.com, Inc. D B D
ANTM Anthem, Inc. D C D
ARE Alexandria Real Estate Equities, Inc. D D D
AVLR Avalara Inc D C D
BAM Brookfield Asset Management Inc. D C D
BF.A Brown-Forman Corporation Class A D C D
BRO Brown & Brown, Inc. D C D
CAG Conagra Brands, Inc. D C D
CCI Crown Castle International Corp D D D
CLVT Clarivate PLC D C D
CNI Canadian National Railway Company D C D
COST Costco Wholesale Corporation D C D
CREE Cree, Inc. D D D
CRM salesforce.com, inc. D B D
CSGP CoStar Group, Inc. D C D
DDOG Datadog Inc Class A D C D
DISH DISH Network Corporation Class A D B D
DPZ Domino’s Pizza, Inc. D D D
EA Electronic Arts Inc. D C D
FB Facebook, Inc. Class A D B D
FMX Fomento Economico Mexicano D C D
GDS GDS Holdings Ltd. Sponsored D C D
HD Home Depot, Inc. D C D
ICLR ICON Plc D C D
IEP Icahn Enterprises L.P. D C D
JD JD.com, Inc. Sponsored ADR Class A D C D
MELI MercadoLibre, Inc. D C D
MO Altria Group Inc D C D
MOH Molina Healthcare, Inc. D C D
MSCI MSCI Inc. Class A D C D
MSFT Microsoft Corporation D C D
NTCO Natura & Co Holding SA D C D
NVO Novo Nordisk A/S Sponsored D C D
PBR Petroleo Brasileiro SA Sponsored ADR D C D
PBR.A Petroleo Brasileiro SA D C D
PDD Pinduoduo, Inc. Sponsored ADR Class A D C D
PG Procter & Gamble Company D C D
PODD Insulet Corporation D C D
RCI Rogers Communications Inc. Class B D C D
SEDG SolarEdge Technologies, Inc. D D D
SMG Scotts Miracle-Gro Company Class A D C D
STNE StoneCo Ltd. Class A D C D
TER Teradyne, Inc. D C D
TTD Trade Desk, Inc. Class A D C D
WMG Warner Music Group Corp. Class A D B D
WORK Slack Technologies, Inc. Class A D C D
WPC W. P. Carey Inc. D D D
XP XP Inc. Class A F B 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

My Pick for the AI Gaming Industry

There are plenty of ways that artificial intelligence (AI) is revolutionizing the way we live our lives. From self-driving cars to the Internet of Things (IoT), I’m sure you’ve read countless articles (including mine!) on the amazing human imitating technology that is changing the world as we know it.

But one area of the AI sphere that is often looked over is a fun one: gaming. AI not only improves gaming, but gaming is also a great way for AI to be improved by humans through a similar collective experience. Things like virtual reality (VR) and online games are constantly being adjusted by feedback from users, which, in turn, upgrades the AI algorithms that can not only improve gaming platforms – but can be more widely used across many platforms!

One company pioneering the AI gaming field is NVIDIA Corporation (NVDA). As I’ve discussed in previous Market360 articles, this fundamentally superior company got its start in the computer graphics business and has been leading the industry for more than two decades. It invented the GPU in 1999 – so it is a well-established player. Since 2014, the company has shifted its focus to five major markets – gaming, professional visualization, data centers, auto and AI.

This week NVDA made headlines for announcing a new flagship gaming processor. NVIDIA dominates the space for these Graphics Processing Units (GPUs), which are favored by gamers for their exceptional speed and graphic quality.

Its last GPU launch for the 3000 series debuted toward the end of last year and gamers seemed to love them. The launch sold out quickly and the models are being sold for three times the sales price, if they are being re-sold at all. This tells me that NVIDIA could stand to charge significantly more for the next line of units to earn higher margins.

Dedicated gamers fork over loads of cash for these processors because the gaming experience is virtually unmatched. The immersive aspect that NVDIA’s processers offer is unlike any other, and hard-core gamers are willing to pay any price for them.

NVDA uses a deep learning model for its GPUs, which process inputs into hidden layers and then uses this information to come up with a prediction. The company actually created its own deep learning model called DLSS to improve its hardware that attempts to fully replicate the way real light looks for videos and video games.

When you add DLSS to NVIDIA’s GPU, you get a light simulation that is virtually indistinguishable from real light. Updates in this AI tech is one reason behind the launch of the next 3000 series.

What’s truly amazing is that DLSS not only improves the way light appears in a video game, but the same mathematical approach also can be applied to many types of monotonous calculations needed for other AI models.

The AI software needed to create AI models, mixed with NVIDIA’s top of the line hardware GPU processers, puts the company lightyears ahead of any competition. And NVIDIA believes that the gaming industry is the just the first industry that its AI technology will revolutionize. With its AI technology expanding from manufacturing to telecommunication, it’s clear gaming is just the tip of the iceberg. After the release of the new GPU’s this week, NVDA was up around 2%, a nice follow-up from its 8.4% run last week thanks to its stunning first-quarter earnings report for fiscal year 2022.

The reality is AI is expected to be bigger than the tech boom in the 1990s and the smartphone revolution of 2007. It will allow us to build a whole new generation of incredible innovations.

In fact, Stephen Hawking predicted that AI would be the “biggest event in the history of our civilization,” and Google’s CEO called it “more important than electricity.”

And NVIDIA is perfectly positioned to benefit. It’s one of the reasons why I recommended the stock in Growth Investor back in May 2019. So, if you’d like to learn more about NVIDIA and why I like it, just sign up for my Growth Investor service. Once you do, you’ll have access to my special reports, including 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.

For full details, click here.

Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned 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:

NVIDIA Corporation (NVDA)

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 85 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
AAL American Airlines Group, Inc. B C B
AAPL Apple Inc. B B B
ATVI Activision Blizzard, Inc. B C B
BURL Burlington Stores, Inc. B B B
CLR Continental Resources, Inc. B B B
CVNA Carvana Co. Class A B C B
IR Ingersoll Rand Inc. B B B
KR Kroger Co. B D B
LEN Lennar Corporation Class A B B B
NVDA NVIDIA Corporation B B B
SKM SK Telecom Co., Ltd. Sponsored ADR B B B
TRMB Trimble Inc. B B B
TWTR Twitter, Inc. B C B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ADBE Adobe Inc. D C C
BSAC Banco Santander-Chile Sponsored ADR D B C
CGNX Cognex Corporation D B C
CMG Chipotle Mexican Grill, Inc. D C C
CNI Canadian National Railway Company C C C
COST Costco Wholesale Corporation D C C
CRM salesforce.com, inc. D B C
FB Facebook, Inc. Class A D B C
FTNT Fortinet, Inc. C C C
GDS GDS Holdings Ltd. Sponsored ADR C C C
HLT Hilton Worldwide Holdings Inc C D C
IPGP IPG Photonics Corporation D C C
KEP Korea Electric Power Corporation C C C
KGC Kinross Gold Corporation C C C
MSCI MSCI Inc. Class A C C C
NOW ServiceNow, Inc. D C C
PBA Pembina Pipeline Corporation C C C
PODD Insulet Corporation C C C
QSR Restaurant Brands International Inc C C C
RGEN Repligen Corporation D B C
SU Suncor Energy Inc. D B C
ULTA Ulta Beauty Inc D B C
WPM Wheaton Precious Metals Corp C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABT Abbott Laboratories C C C
ADP Automatic Data Processing, Inc. B C C
ALXN Alexion Pharmaceuticals, Inc. C C C
DGX Quest Diagnostics Incorporated C B C
HDB HDFC Bank Limited Sponsored ADR B C C
JBHT J.B. Hunt Transport Services, Inc. C C C
MFC Manulife Financial Corporation B C C
MMM 3M Company C C C
MTB M&T Bank Corporation C C C
NGG National Grid plc Sponsored ADR C C C
ODFL Old Dominion Freight Line, Inc. C C C
OMC Omnicom Group Inc C C C
SAN Banco Santander S.A. Sponsored ADR C B C
SSL Sasol Limited Sponsored ADR C C C
TFC Truist Financial Corporation C C C
TSN Tyson Foods, Inc. Class A C C C
XRAY DENTSPLY SIRONA, Inc. C B C
ZBRA Zebra Technologies Corporation Class A C B C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AME AMETEK, Inc. D C D
ANTM Anthem, Inc. D C D
AON Aon Plc Class A D C D
APH Amphenol Corporation Class A D C D
AWK American Water Works Company, Inc. D D D
BK Bank of New York Mellon Corporation D C D
BLL Ball Corporation F B D
BUD Anheuser-Busch InBev SA/NV D C D
CAG Conagra Brands, Inc. D C D
CCI Crown Castle International Corp D D D
CDW CDW Corp. D C D
CMS CMS Energy Corporation D C D
DLTR Dollar Tree, Inc. F C D
EBAY eBay Inc. D C D
HSIC Henry Schein, Inc. D C D
ICLR ICON Plc D C D
IEX IDEX Corporation D C D
LIN Linde plc D C D
MKL Markel Corporation D C D
NEE NextEra Energy, Inc. D C D
NTCO Natura & Co Holding SA D C D
NVO Novo Nordisk A/S Sponsored D C D
O Realty Income Corporation D D D
PG Procter & Gamble Company D C D
ROK Rockwell Automation, Inc. D B D
ROL Rollins, Inc. D B D
RSG Republic Services, Inc. D C D
WEC WEC Energy Group Inc D C D
WM Waste Management, Inc. D C D
XEL Xcel Energy 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

Why I’m Looking Forward to ZM’s Earnings on Tuesday

The first-quarter earnings season is almost done, but it certainly is going out with a bang! Take NVIDIA Corporation (NVDA), for example. The company reported its first-quarter results for fiscal year 2022 on Wednesday, and they did not disappoint.

First-quarter revenue soared 84% year-over-year to $5.66 billion, which topped analysts’ estimates for total first-quarter revenue of $5.41 billion. First-quarter earnings surged 103% year-over-year to $3.66 per share, up from $1.80 per share in the same quarter a year ago. The analyst community was anticipating first-quarter earnings of $3.28 per share, so NVIDIA posted an 11.6% earnings surprise.

While the stock pulled back on Thursday, it bounced back nicely today and hit a new 52-week high this afternoon.

We have a few stragglers that will be reporting over the next two weeks, but the next fundamentally superior company I’m most interested in is Zoom Video Communications, Inc. (ZM), which is up to bat with its first-quarter results next Tuesday, June 1. Analysts are expecting earnings of $0.99 per share on $906.3 million in revenue. This represents 395% year-over-year earnings growth, up from adjusted earnings of $0.20 per share in the first quarter of fiscal year 2020, and 176.2% year-over-year revenue growth.

Zoom has continually exceeded analyst expectations. For example, ZM’s fourth-quarter earnings report, released in early March, saw revenue soar 368.8% year-over-year to $882.5 million, up from $188.25 million in the same quarter a year ago. Adjusted earnings per share surged 713.3% year-over-year to $1.22 per share, compared to $0.15 per share in the fourth quarter of 2020. The consensus estimate called for adjusted earnings of $0.79 per share on $811.77 million in revenue, so Zoom posted a whopping 54.4% earnings surprise and an 8.7% revenue surprise.

Company management commented, “The fourth quarter marked a strong finish to an unprecedented year for Zoom.” Zoom saw a 470% jump in customers with more than 10 employees during the quarter, bringing its total to 467,100 customers. That also exceeded expectations for 442,600 customers.

So, is ZM a good buy ahead of its earnings results next week? Well, according to Portfolio Grader, that’s a resounding yes!

ZM holds an A-rating in Portfolio Grader, making in a “Strong Buy.” It also receives an A-rating for its Quantitative Grade and a B-rating for its Fundamental Grade.

ZM’s Quantitative Grade is important here, and I’ll explain exactly why the Quantitative Grade is so heavily weighted in today’s Growth Investor Monthly Issue for June. (Click here to sign up now so you can read the issue while it’s still hot off the presses.)

Once you sign up, you’ll also have access to my three newest High-Growth Investment recommendations, all of which earn an A-rating for their Quantitative Grade and A-rating for their Total Grade.  Plus, I unveil my latest Top 5 Stock list and two brand-new Elite Dividend Payers stocks. If you’re interested, I encourage you to join me at Growth Investor today.

For full details, click here.

Note: Our InvestorPlace offices and the customer-service phone lines are closed on Monday, May 31, along with the stock exchanges, for the Memorial Day holiday. I’ll be back in touch on Tuesday, June 1, with more Market360 articles. I hope you enjoy the long weekend!

Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned 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:

NVIDIA Corporation (NVDA), Zoom Video Communications (ZM)

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 89 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
A Agilent Technologies, Inc. B C B
ADP Automatic Data Processing, Inc. B C B
BHC Bausch Health Companies Inc. B C B
BILL Bill.com Holdings, Inc. B B B
ENPH Enphase Energy, Inc. B C B
EXAS Exact Sciences Corporation B C B
GFI Gold Fields Limited Sponsored ADR B C B
GOOGL Alphabet Inc. Class A B B B
HDB HDFC Bank Limited Sponsored ADR B C B
IBN ICICI Bank Limited Sponsored ADR B B B
MXIM Maxim Integrated Products, Inc. B C B
NEM Newmont Corporation B D B
NET Cloudflare Inc Class A B C B
NGG National Grid plc Sponsored ADR B C B
NTES NetEase, Inc. Sponsored ADR B C B
SUZ Suzano SA Sponsored ADR B B B
TM Toyota Motor Corp. Sponsored ADR B B B
YNDX Yandex NV Class A B D B
YUMC Yum China Holdings, Inc. B B B
ZLAB Zai Lab Ltd. Sponsored ADR A D B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ADI Analog Devices, Inc. D C C
ANTM Anthem, Inc. C C C
AON Aon Plc Class A C C C
AWK American Water Works Company, Inc. C D C
CAG Conagra Brands, Inc. C C C
CPRT Copart, Inc. D B C
DBX Dropbox, Inc. Class A D B C
DDOG Datadog Inc Class A C C C
FNV Franco-Nevada Corporation D C C
HD Home Depot, Inc. D B C
INTU Intuit Inc. C D C
LSXMB Liberty Media Corp. Series B Liberty C D C
MKL Markel Corporation D C C
NVO Novo Nordisk A/S Sponsored C C C
O Realty Income Corporation C D C
OLED Universal Display Corporation D C C
PANW Palo Alto Networks, Inc. C C C
PUK Prudential plc Sponsored ADR D C C
STM STMicroelectronics NV ADR RegS D B C
TEAM Atlassian Corp. Plc Class A D C C
TTD Trade Desk, Inc. Class A D C C
TTWO Take-Two Interactive Software, Inc. C C C
TU TELUS Corporation C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAPL Apple Inc. C B C
AFL Aflac Incorporated C B C
AOS A. O. Smith Corporation C B C
ATUS Altice USA, Inc. Class A C B C
BURL Burlington Stores, Inc. B C C
CHTR Charter Communications, Inc. Class A B C C
CLR Continental Resources, Inc. C B C
CSL Carlisle Companies Incorporated C C C
DISCA Discovery, Inc. Class A B D C
DISH DISH Network Corporation Class A D B C
FND Floor & Decor Holdings, Inc. Class A C B C
FNF Fidelity National Financial, Inc. C B C
GWW W.W. Grainger, Inc. C C C
HAL Halliburton Company C C C
HIG Hartford Financial Services Group, Inc. B D C
KR Kroger Co. B D C
LEN Lennar Corporation Class A C B C
LOW Lowe’s Companies, Inc. C B C
PGR Progressive Corporation C C C
PH Parker-Hannifin Corporation B C C
PHM PulteGroup, Inc. C C C
RDY Dr. Reddy’s Laboratories Ltd. B C C
SMFG Sumitomo Mitsui Financial Group, Inc. B C C
SPG Simon Property Group, Inc. B C C
TME Tencent Music Entertainment Group B C C
TRMB Trimble Inc. C B C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ACGL Arch Capital Group Ltd. D B D
ANET Arista Networks, Inc. D C D
CHRW C.H. Robinson Worldwide, Inc. D B D
CMG Chipotle Mexican Grill, Inc. D C D
CNI Canadian National Railway Company D C D
EC Ecopetrol SA Sponsored ADR F A D
FAST Fastenal Company D C D
FB Facebook, Inc. Class A D B D
GLPI Gaming and Leisure Properties, Inc. D C D
HLT Hilton Worldwide Holdings Inc D D D
HST Host Hotels & Resorts, Inc. D C D
KMX CarMax, Inc. D C D
PBA Pembina Pipeline Corporation D C D
PBR.A Petroleo Brasileiro SA Sponsored D C D
PHG Koninklijke Philips N.V. D C D
RE Everest Re Group, Ltd. D B D
RPM RPM International Inc. D B D
STE STERIS Plc D D D
SU Suncor Energy Inc. D B D
XOM Exxon Mobil Corporation 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

How to Make 1,125% on a Single Stock: The Supergrowth Investor’s Blueprint

In early 2002, as America was reeling from the dot.com stock crash, as the New England Patriots enjoyed their first Super Bowl win, and as A Beautiful Mind won the Best Picture Oscar, an unusual-looking can began appearing in stores…

The can contained a product called “Monster Energy.”

Source: Monster Energy

Monster Energy is sold as an energy-boosting drink, full of sugar, caffeine, and other stimulants. If you’re over 60 years old, chances are good you’ve never tried it. You stick to coffee. But in the early 2000s, Monster Energy became a phenomenon with 20- and 30-somethings. For many young people, energy drinks like Monster became “their coffee” and “their Coca-Cola.”

Thanks to this huge shift in consumer tastes, the maker of Monster Energy saw its revenue from drinks skyrocket from $50 million in 2003 to $1.7 billion in 2011, a 34-fold increase.

The iron law of the stock market says that if a company massively grows its sales and earnings grow, then its stock price will massively grow as well. So, it’s no wonder the maker of Monster Energy – a small firm named Hansen Natural – saw its shares skyrocket in the mid-2000s.

I’m more familiar with the Monster Energy story than most. Readers of my Breakthrough Stocks newsletter were on board with the stock and took the ride of their lives. From my original buy recommendation of the stock in January 1, 2004, to our sell alert on June 1 2007, we made an incredible 1,125%.

That kind of gain changes lives.

It buys lake houses, Ferraris and a dozen vacations. It turns a $15,000 investment into $183,750… a $35,000 investment into $428,750… and a $50,000 investment into $612,500.

Every decade, no matter what is happening with the economy, dozens of stocks climb by more than 1,000%.

Often, these “super performance” stocks are America’s greatest corporate success stories.

The popular coffee chain, Starbucks Corporation (SBUX), for example gained 1,807% during the 1990s.

The now-famous semiconductor maker Intel Corporation (INTC) gained 6,556% during the same time.

Then you have the 1980s. This decade saw the fast-growing retail chain Walmart Inc. (WMT) gain 4,185%. Another fast-growing retail chain, The Gap, Inc. (GPS), gained 5,539%.

As you can see, “super-performance stocks” come in many forms.

Sometimes they are innovative restaurant chains with great new concepts.

Sometimes they are high-tech firms that change the world through their innovations.

Sometimes they are fast-growing new retail chains.

The business models these winners employ have their differences, but the cash profits reaped by shareholders are the same.

The profit earned from a stock that climbs 500%… 1,000%… even 1,500% can add an extra $10,000… $100,000… even $1 million to your net worth.

The allure of making huge profits has drawn people to the stock market for over a century. And although many people search for stocks with 1,000%-plus potential, few find them.

The reason for this failure is simple.

Instead of using a proven, repeatable strategy for pinpointing the world’s best growth stocks, most people take the amateur’s approach. They use gut instincts and follow “hot tips” from other amateurs.

They employ different strategies randomly. They flutter from strategy to strategy like butterflies. And they end up with crudely constructed, messy portfolios.

Today, I’m going to show you how to succeed where others fail.

I’ve always been a numbers and data junkie… and I love the stock market. So, many years ago, I conducted a huge study of the biggest stock market winners in American history. I wanted to determine the qualities of the biggest stock market winners – before they went on their giant, life-changing runs.

Through hundreds of hours of work and exhaustive computerized data analysis, I found that stocks poised to climb 10-fold… 20-fold… even 50-fold exhibit some unique financial characteristics.

I found that incredible success leaves “fingerprints.”

My findings have changed my life and the lives of many others. Although I started from humble beginnings, I’ve made more money than I ever care to spend (although I’ve spent a lot on sports cars, one of my other passions). I’ve helped many regular Americans make huge returns in the stock market.

I want you to have that, too, so I’m going to show you how to find super-performance stocks that can make you 1,000%+ gains. I’ll detail my common-sense method for profiting in the market’s fastest-growing, highest-performance small-cap stocks.

You’ll learn how to find them… how to buy them… and the characteristics they share.

The ideas I’ll cover are what made me “an icon among growth investors” according to The New York Times. And “one of Wall Street’s most renowned growth investors” according to Forbes.

And more important than press clippings, my proven system for picking stocks directed my readers to Apple Inc. (AAPL) when it was trading at the equivalent of just $4 a share…

…Along with Amazon.com, Inc. (AMZN) during the early 2000s, long before it became the largest retailer in the world.

Then there’s my early recommendation of Google, now called Alphabet Inc. (GOOGL), which numerous media outlets have written and talked about over the years…

Including newsletter industry watchdog Mark Hulbert of MarketWatch, who credited me with being “the analyst who recommended Google before anyone else.”

Most importantly, the proven system I’m about to share with you has made my clients and readers a great deal of money over the past 37 years. I’m confident they can help you do the same.

Click here to learn more.

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:

Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL)

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 155 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
ABT Abbott Laboratories B B B
AES AES Corporation B D B
AFL Aflac Incorporated B B B
AIG American International Group, Inc. B B B
ALL Allstate Corporation B B B
AOS A. O. Smith Corporation B B B
BAC Bank of America Corp B B B
BCS Barclays PLC Sponsored ADR B B B
BEN Franklin Resources, Inc. B B B
CCEP Coca-Cola Europacific Partners plc B C B
CHTR Charter Communications, Inc. Class A B C B
CLR Continental Resources, Inc. B B B
CNA CNA Financial Corporation B C B
CSL Carlisle Companies Incorporated B C B
CTVA Corteva Inc B C B
DRI Darden Restaurants, Inc. B C B
ETN Eaton Corp. Plc A C B
FRC First Republic Bank B C B
GE General Electric Company B C B
HCA HCA Healthcare Inc B B B
HES Hess Corporation B B B
HIG Hartford Financial Services Group, Inc. B D B
HPE Hewlett Packard Enterprise Co. B C B
IT Gartner, Inc. C B B
LKQ LKQ Corporation B B B
LNG Cheniere Energy, Inc. B C B
LUMN Lumen Technologies, Inc. B C B
LUV Southwest Airlines Co. A C B
LYG Lloyds Banking Group plc Sponsored ADR B C B
MET MetLife, Inc. B D B
MMM 3M Company B C B
MTB M&T Bank Corporation B C B
NWG NatWest Group Plc Sponsored ADR B B B
NXPI NXP Semiconductors NV B B B
OMC Omnicom Group Inc B C B
RDY Dr. Reddy’s Laboratories Ltd. B C B
SAN Banco Santander S.A. Sponsored ADR C B B
SLF Sun Life Financial Inc. B C B
SPG Simon Property Group, Inc. B C B
TFC Truist Financial Corporation B C B
TSN Tyson Foods, Inc. Class A B C B
TXN Texas Instruments Incorporated B C B
UBS UBS Group AG B C B
USB U.S. Bancorp B B B
VER VEREIT, Inc. B C B
WDC Western Digital Corporation B B B
XRAY DENTSPLY SIRONA, Inc. B B B
ZBRA Zebra Technologies Corporation Class A B B B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ACGL Arch Capital Group Ltd. D B C
ANET Arista Networks, Inc. D C C
APD Air Products and Chemicals, Inc. C D C
BAM Brookfield Asset Management Inc. C C C
BK Bank of New York Mellon Corporation C C C
BP BP p.l.c. Sponsored ADR D B C
BUD Anheuser-Busch InBev SA/NV Sponsored C C C
BXP Boston Properties, Inc. C D C
CCI Crown Castle International Corp. C D C
CDW CDW Corp. D C C
CTSH Cognizant Technology Solutions Corp. C C C
DLR Digital Realty Trust, Inc. D B C
EC Ecopetrol SA Sponsored ADR D A C
ED Consolidated Edison, Inc. B D C
ET Energy Transfer, L.P. D B C
FTS Fortis Inc. C C C
HST Host Hotels & Resorts, Inc. C C C
IEX IDEX Corporation C C C
KEYS Keysight Technologies Inc C C C
LBTYB Liberty Global Plc Class B C B C
LYV Live Nation Entertainment, Inc. C C C
NI NiSource Inc D C C
NLOK NortonLifeLock Inc. C C C
NMR Nomura Holdings, Inc. Sponsored ADR C D C
NTRS Northern Trust Corporation C C C
PBA Pembina Pipeline Corporation C C C
PBR.A Petroleo Brasileiro SA Sponsored D C C
PG Procter & Gamble Company C C C
PHG Koninklijke Philips N.V. Sponsored ADR D C C
RCI Rogers Communications Inc. Class B C C C
RDS.A Royal Dutch Shell Plc Sponsored D B C
RDS.B Royal Dutch Shell Plc Sponsored D B C
SNPS Synopsys, Inc. D C C
TOT Total SE Sponsored ADR Class B C C C
UHS Universal Health Services, Inc. Class B C C C
WPC W. P. Carey Inc. C D C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
A Agilent Technologies, Inc. C C C
AAP Advance Auto Parts, Inc. B C C
ABBV AbbVie, Inc. C C C
BILL Bill.com Holdings, Inc. C B C
BLK BlackRock, Inc. C C C
BWA BorgWarner Inc. C C C
CG Carlyle Group Inc C B C
CHWY Chewy, Inc. Class A C B C
CNQ Canadian Natural Resources Limited C B C
CVNA Carvana Co. Class A B C C
CZR Caesars Entertainment Inc B C C
DISCK Discovery, Inc. Class C B D C
DOCU DocuSign, Inc. C C C
EQH Equitable Holdings, Inc. B F C
ERIC Telefonaktiebolaget LM Ericsson C C C
EXAS Exact Sciences Corporation C C C
FANG Diamondback Energy, Inc. C B C
GH Guardant Health, Inc. C C C
GOOGL Alphabet Inc. Class A C B C
JD JD.com, Inc. Sponsored ADR Class A D B C
KDP Keurig Dr Pepper Inc. C C C
MAS Masco Corporation C C C
MDB MongoDB, Inc. Class A C C C
NDAQ Nasdaq, Inc. C C C
NET Cloudflare Inc Class A B C C
NVDA NVIDIA Corporation C C C
NVR NVR, Inc. B C C
ORLY O’Reilly Automotive, Inc. C C C
PDD Pinduoduo, Inc. Sponsored ADR Class A C C C
PXD Pioneer Natural Resources Company B C C
SMG Scotts Miracle-Gro Company Class A C C C
TMO Thermo Fisher Scientific Inc. C B C
TWLO Twilio, Inc. Class A C C C
XP XP Inc. Class A C B C
ZLAB Zai Lab Ltd. Sponsored ADR B D C
ZNGA Zynga Inc. Class A C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABMD ABIOMED, Inc. D C D
AMCR Amcor PLC D C D
ANTM Anthem, Inc. D C D
AON Aon Plc Class A D C D
AVLR Avalara Inc D C D
AWK American Water Works Company, Inc. D D D
BABA Alibaba Group Holding Ltd. Sponsored D C D
CAG Conagra Brands, Inc. D C D
CGNX Cognex Corporation D B D
CHGG Chegg, Inc. D C D
CI Cigna Corporation D C D
CTAS Cintas Corporation D C D
DDOG Datadog Inc Class A D C D
DG Dollar General Corporation D C D
DPZ Domino’s Pizza, Inc. D D D
DT Dynatrace, Inc. D D D
FNV Franco-Nevada Corporation D C D
FTNT Fortinet, Inc. D C D
GIS General Mills, Inc. D C D
HD Home Depot, Inc. D C D
HEI.A HEICO Corporation Class A D D D
MSCI MSCI Inc. Class A D C D
NFLX Netflix, Inc. D B D
NICE NICE Ltd Sponsored ADR D C D
NOW ServiceNow, Inc. D C D
OKTA Okta, Inc. Class A D C D
PANW Palo Alto Networks, Inc. D C D
QSR Restaurant Brands International Inc D C D
SPGI S&P Global, Inc. D C D
TEAM Atlassian Corp. Plc Class A D C D
TTD Trade Desk, Inc. Class A D B D
TTWO Take-Two Interactive Software, Inc. D C D
TYL Tyler Technologies, Inc. D C D
VOD Vodafone Group Plc Sponsored ADR D C D
WPM Wheaton Precious Metals Corp 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

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 150 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
ALXN Alexion Pharmaceuticals, Inc. B C B
ATH Athene Holding Ltd. Class A B B B
ATUS Altice USA, Inc. Class A B B B
BBVA Banco Bilbao Vizcaya Argentaria, S.A. B C B
BKR Baker Hughes Company Class A B C B
BURL Burlington Stores, Inc. B C B
BWA BorgWarner Inc. B C B
CG Carlyle Group Inc B B B
CNQ Canadian Natural Resources Limited B C B
DB Deutsche Bank AG B B B
DOV Dover Corporation B C B
DVN Devon Energy Corporation B B B
ELAN Elanco Animal Health, Inc. B C B
FANG Diamondback Energy, Inc. B B B
GWW W.W. Grainger, Inc. B C B
HAL Halliburton Company B C B
HWM Howmet Aerospace Inc. B C B
IMO Imperial Oil Limited B B B
J Jacobs Engineering Group Inc. B C B
JLL Jones Lang LaSalle Incorporated B C B
JPM JPMorgan Chase & Co. C B B
KB KB Financial Group Inc. Sponsored ADR B C B
KDP Keurig Dr Pepper Inc. B C B
KR Kroger Co. B C B
LYB LyondellBasell Industries NV B B B
MFG Mizuho Financial Group Inc Sponsored B C B
MPLX MPLX LP B C B
NVR NVR, Inc. B C B
PKG Packaging Corporation of America B C B
PKI PerkinElmer, Inc. B B B
PRU Prudential Financial, Inc. B C B
PXD Pioneer Natural Resources Company B C B
REG Regency Centers Corporation B C B
TRI Thomson Reuters Corporation B B B
VMC Vulcan Materials Company A B B
WFC Wells Fargo & Company C A B
WMB Williams Companies, Inc. B B B
WRK WestRock Company B C B
WY Weyerhaeuser Company C B B
XP XP Inc. Class A B C B
XPO XPO Logistics, Inc. B B B
XYL Xylem Inc. B C B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABEV Ambev SA Sponsored ADR D B C
AGR Avangrid, Inc. D C C
AMCR Amcor PLC D C C
ANTM Anthem, Inc. C C C
APH Amphenol Corporation Class A D C C
BBD Banco Bradesco S.A. Sponsored ADR Pfd D C C
BCE BCE Inc. C C C
BCH Banco de Chile Sponsored ADR D B C
BEN Franklin Resources, Inc. C C C
BSAC Banco Santander-Chile Sponsored ADR D B C
BSBR Banco Santander (Brasil) S.A. Sponsored C C C
CAG Conagra Brands, Inc. C C C
CHRW C.H. Robinson Worldwide, Inc. D B C
CI Cigna Corporation D B C
CMS CMS Energy Corporation C C C
CNI Canadian National Railway Company C C C
COP ConocoPhillips D B C
EBAY eBay Inc. C C C
EOG EOG Resources, Inc. C D C
GIB CGI Inc. Class A C C C
GIS General Mills, Inc. C C C
HLT Hilton Worldwide Holdings Inc C D C
HON Honeywell International Inc. C C C
HSBC HSBC Holdings PLC Sponsored ADR D B C
HSIC Henry Schein, Inc. C B C
IT Gartner, Inc. C B C
ITW Illinois Tool Works Inc. C C C
LIN Linde plc D C C
MDLZ Mondelez International, Inc. Class A D C C
MO Altria Group Inc C C C
MSI Motorola Solutions, Inc. C C C
NOK Nokia Oyj Sponsored ADR D B C
NTCO Natura & Co Holding SA Sponsored ADR D B C
OXY Occidental Petroleum Corporation C D C
PFE Pfizer Inc. C C C
PFG Principal Financial Group, Inc. C C C
RSG Republic Services, Inc. C C C
RYAAY Ryanair Holdings Plc Sponsored ADR C F C
SLB Schlumberger NV C C C
SNP China Petroleum & Chemical Corporation D B C
SU Suncor Energy Inc. D B C
TAP Molson Coors Beverage Company Class B C D C
UAL United Airlines Holdings, Inc. C D C
WM Waste Management, Inc. C C C
XEL Xcel Energy Inc. C C C
XOM Exxon Mobil Corporation D C C
Y Alleghany Corporation D B C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABT Abbott Laboratories C B C
ACN Accenture Plc Class A C C C
AES AES Corporation B D C
AMD Advanced Micro Devices, Inc. C B C
ATVI Activision Blizzard, Inc. C C C
AVLR Avalara Inc C C C
BBY Best Buy Co., Inc. B C C
BIO Bio-Rad Laboratories, Inc. Class A C B C
CDNS Cadence Design Systems, Inc. C B C
CHGG Chegg, Inc. C C C
CMG Chipotle Mexican Grill, Inc. C C C
DDOG Datadog Inc Class A B C C
DIS Walt Disney Company B D C
DRI Darden Restaurants, Inc. B C C
EA Electronic Arts Inc. B C C
EL Estee Lauder Companies Inc. Class A C B C
ENPH Enphase Energy, Inc. C C C
GLPI Gaming and Leisure Properties, Inc. B C C
KLAC KLA Corporation C B C
MELI MercadoLibre, Inc. C C C
NTES NetEase, Inc. Sponsored ADR B D C
OKE ONEOK, Inc. C B C
OKTA Okta, Inc. Class A C C C
PPD PPD, Inc. C B C
PYPL PayPal Holdings Inc C B C
QCOM Qualcomm Inc C B C
QRVO Qorvo, Inc. C B C
STE STERIS Plc B C C
SWKS Skyworks Solutions, Inc. C C C
TEAM Atlassian Corp. Plc Class A C C C
TREX Trex Company, Inc. C C C
TW Tradeweb Markets, Inc. Class A C C C
TWTR Twitter, Inc. C C C
VEEV Veeva Systems Inc Class A C C C
VTR Ventas, Inc. B C C
WDC Western Digital Corporation C B C
YNDX Yandex NV Class A B D C
Z Zillow Group, Inc. Class C C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABC AmerisourceBergen Corporation D C D
ACGL Arch Capital Group Ltd. D B D
ADBE Adobe Inc. D C D
ADSK Autodesk, Inc. D B D
CLX Clorox Company D D D
COO Cooper Companies, Inc. D B D
CSGP CoStar Group, Inc. D C D
CTSH Cognizant Technology Solutions Corporation D C D
GDS GDS Holdings Ltd. Sponsored ADR Class A D C D
INTU Intuit Inc. D D D
IPGP IPG Photonics Corporation D C D
KEYS Keysight Technologies Inc D C D
LAMR Lamar Advertising Company Class A D C D
MKC McCormick & Company, Incorporated D C D
MPW Medical Properties Trust, Inc. D B D
RNG RingCentral, Inc. Class A D C D
SNPS Synopsys, Inc. D C D
TECH Bio-Techne Corporation D C D
UHS Universal Health Services, Inc. Class B D C D
WORK Slack Technologies, 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

Why I Still Like ETSY Long Term

This first-quarter earnings season has been a very exciting one for investors. 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, and the second quarter is now anticipated to be even stronger!

Now, while many companies are being rewarded for their strong earnings results, there are also those that are hit with profit-taking despite topping analysts’ expectations.

Take Etsy, Inc. (ETSY), for example.

Founded in 2005 to create a community where people can uncover unique items, Etsy is an online platform that connects millions of shoppers with sellers of handmade, one-of-a-kind goods and antique items.

The company is based in Brooklyn, New York, but it has buyers and sellers in practically every country around the world. The majority of its buyers and sellers hail from the U.S., Canada, the U.K., Australia, France and Germany. Buyers can search from more than 60 million items in several retail categories. And sellers have access to a handful of services, including on-site advertising, payment processing, shipping labels and custom websites.

Shares of Etsy, Inc.  fell more than 15% following its first-quarter earnings report on Wednesday. But what’s interesting here is that Etsy actually beat sales and earnings expectations for the first quarter. So, why exactly did the stock plummet? Well, the short answer is that guidance for the second quarter wasn’t looking as hot due to the year-over-year decline in online shopping. Company management commented, “We currently expect Q2 2021 GMS to decelerate along with the rest of e-commerce as we lap the tremendous 2020 growth rates.”

But if you take a step back, the overall first-quarter earnings report was still quite strong. Etsy achieved earnings of $143.8 million, or $1.00 per share, and sales of $550.6 million. That represented 1,048.1% year-over-year earnings growth and 141.5% year-over-year sales growth. The consensus estimate called for earnings of $0.88 per share on $529.77 million in sales, so Etsy posted a 13.6% earnings surprise and 3.9% sales surprise.

Looking forward, second-quarter revenue is expected to grow to $493 million to $536 million, 15% to 25% year-over-year revenue growth. While the company’s growth is tapping the brakes slightly, double-digit revenue growth is still nothing to sneeze at. The reality is Wall Street knee-jerk reacted to the earnings report, but it remains in the fundamentally superior camp.

A quick look at Etsy’s Report Card will also show you that Etsy is in great shape.

As you can see, the stock earnings an A-rating for its Quantitative Grade and Total Grade. So, it remains a “Strong Buy” right now.

The bottom line: Even though ETSY took a hit this week, it remains a good long-term buy. ETSY bounced more than 4% today, and as I like to say, good stocks bounce like “fresh tennis balls.” Clearly, that’s just the case with ETSY, so I look for the stock to continue to rebound in the coming weeks.

Now, if you’re looking to shore up your portfolio with fundamentally superior stocks, look no further than my Platinum Growth Club.

I have more than 100 stocks across all of my services, and each and every one boasts strong earnings and sales growth. My Platinum Growth Club Model Portfolio stocks have been posting wave-after-wave of positive earnings results in the most-recent quarter, which, in turn, has dropkicked and driven many of them higher.

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.

And as a Platinum Growth Club subscriber, you’ll also 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!

The great news is 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.

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:

Etsy, Inc. (ETSY)

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