Are FAANG Stocks’ Earnings More Bark Than Bite?

It’s been a volatile week for the stock market, with the major indexes ending the week down about 3%. The good news is that the pandemic triggered a bigger push towards digitalization, which progressed rapidly due to the immediate need for advanced technological solutions so folks could remain in contact with friends, family and co-workers, and companies could keep their businesses running.

This shift has been great for e-commerce, as well as stocks that profit from the work-from-home trend or home entertainment. So, it should come as no surprise that the FAANG stocks –Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL) have performed relatively well.

Now that most of their earnings results have been released, it’s a good time for us to do a “temperature check” and see if their numbers have any teeth.

Facebook – Announced January 27, 2021

Facebook’s fourth-quarter revenue rose 33% to $28.07 billion, which beat Wall Street consensus estimates for revenue of $26.44 billion. Earnings climbed 51.6% year-over-year to $3.88 per share from the $2.56 earned in the prior year. Analysts were calling for earnings of $3.22 per share, so the company topped expectations by 20.5%.  Facebook also posted a profit of $11.2 billion, which accounted for a year-over-year increase of over 50%.

The social media giant’s userbase fell to 195 million daily active users in the U.S. and Canada, from 196 million in the previous quarter. However, across all of its apps including Instagram, Messenger and WhatsApp, monthly users ticked up 14% to 3.3 billion from 3.21 billion in the previous quarter.

Average daily and monthly active users climbed year-over-year, but the figures were only up slightly from the third quarter in the U.S, which the company said were elevated due to the pandemic. Despite the overall positive report, Facebook shares sold off more than 6% this week as investors worried about fewer users in the U.S. and Canada and potential regulation changes to Section 230, which protects the company from being sued over user content.

Facebook CEO Mark Zuckerberg also noted that Apple’s privacy changes on the iOS 14 update could impact Facebook’s ability to target ads to customers, which is a huge part of Facebook’s revenue. This could begin to affect its business as soon as the first quarter.

Apple – Announced January 27, 2021

Apple posted record fourth-quarter revenue of $111.44 billion, up 21% year-over-year and higher than analysts’ expectations of $103.28 billion.

Earnings of $1.68 per share fell from $3.03 year-over-year but still beat analysts’ expectations of $1.41 per share by 19%.

The company’s $65.6 billion in iPhone revenue almost doubled from revenue of $33.36 billion last year, thanks in large part to the release of the 5G-enabled iPhone 12. Mac sales fell slightly short of estimates for $8.69 billion, coming in at $8.68 billion. Services revenue of $15.76 billion jumped from $12.51 billion a year prior.

CEO Tim Cook noted that results could have been better without the COVID-19 pandemic, with lockdowns forcing Apple to temporarily close some Apple stores. Apple declined to provide fiscal first-quarter guidance. The lack of guidance helped fuel a sell-off this week, with Apple shares slipping down over 7%.

Netflix Announced January 20, 2021

Netflix had its best announcement season in some time this quarter. However, earnings per share of $1.19 missed analysts’ expectations for $1.39. Revenue of $6.64 billion came in slightly above estimates calling for $6.626 billion. The streaming giant added 8.5 million global paid net subscribers, which beat the expected 6.47 million. The service exceeded 200 million paid subscribers for the first time during the fourth quarter.

Netflix had some additional competition during the fourth quarter from Apple TV+, Discovery+, Disney+, HBO Max and Peacock. Despite its competition, Netflix still saw huge success with some of its limited series last year, including The Queens Gambit, which had 62 million households watching in its first 28 days – a new record for the company.

Interestingly, Netflix was also its own worst enemy this quarter following the huge influx of subscribers at the onset of the pandemic. The dramatic increase in the first few quarters of 2020 called for a decline during the past few quarters. Looking forward, Netflix expects to add six million subscribers during the first quarter of 2021, which is less than half of the 15.8 million subscribers added during the first quarter in 2020.

The stock is down 8.6% since the earnings announcement, although some of those losses were due in part to the broader market selloff on Wednesday.

Amazon Announcing February 2, 2021

Amazon is expected to achieved fourth-quarter earnings of $7.00 per share, an 8.2% increase year-over-year. Revenue is estimated come in at $120.23 billion, up 37.5% from a year ago. Last quarter, Amazon beat expectations by 69.45% with earnings of $12.37, versus the expected $7.30. The company has beat estimates the past four quarters; however, analysts revised estimates down 21.7% over the three months and earnings have decreased from last quarter.

Alphabet – Announcing February 2, 2021

Alphabet has seen a streak of earnings surprises over the past few quarters. For the upcoming fourth-quarter earnings announcement, GOOGL is expected to achieve earnings of $15.89 per share on revenue of $53.11 billion. This is down from last quarter, when the company achieved earnings of $16.40 per share while estimates called for $11.40 per share.

A Mixed Earnings Bag

Amazon’s and Google’s earnings reports next week wrap up the FAANG earnings announcements for the quarter. Overall, this quarter has been a mixed bag for the FAANG group. Most of the companies only had slight earnings surprises or completely missed expectations. With the exception of the release of new tech from Apple, the results were relatively disappointing. In fact, most of the stocks are down since the release of their earnings.

The FAANG stocks aren’t the only big-name tech companies that reported disappointing earnings this week: Tesla (TSLA) also reported weak fourth-quarter earnings results on Wednesday. Earnings of $0.80 per share missed analysts’ expectations for $0.90 by 11.1%. Revenue was slightly better, with revenue of $10.74 million topping the estimated $10.13 billion.

What I find especially worrisome about Tesla is that the company is still not making money building cars. Most of its revenue comes from electric vehicle tax credits from other automotive companies. The company received $1.58 billion last year in tax credits, but only made $721 million in earnings. This shows me they are only making money selling carbon credits, so they can meet California and European Union (EU) emission standards. Yikes!

Their cars are also being heavily discounted in China, and their average selling price fell 11% as customers shifted towards cheaper models. The stock is down about 9% since its earnings release.

While the massive FAANG stocks are falling short, there are plenty of lesser known, but still fundamentally superior stocks that are posting strong earnings results.

Thanks to my Project Mastermind, I’m able to find these stocks and help my subscribers make massive gains

Take one financial tech company I recommended based on Project Mastermind back on June 23, 2020, to my Accelerated Profits subscribers. The stock has soared 122% since December 31, 2020. The overall Accelerated Profits Buy List of 57 stocks is up an average 15% over the same timeframe, while the S&P 500 is about flat.

This past Tuesday, I released a brand-new Buy Alert for two companies thanks to Project Mastermind. One released its earnings report on Thursday, posting a 70.5% earnings beat.

I will be releasing another Buy Alert next Tuesday that has seen explosive earnings surprises in the past two quarters. You don’t want you to miss out before any of these stocks really take off, so make sure to sign up here so you can still get in early.

You can also click here to watch my Project Mastermind event, where I gave everyone a glimpse at my system and revealed my number-one stock pick, which posted a 76.9% earnings surprise in its most-recent quarter. You’re not going to want to miss out.

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:

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

Tempted by an IPO? Check Your Ego At The Door

Nothing keeps you humble like investing in stocks. On Wall Street, the road is paved with good intentions – and spectacular falls from grace. With WeWork, investors never even had the chance to buy stock! Once valued at $47 billion, WeWork was supposed to be among the hottest IPOs of 2019. Then once potential investors got a peek at its financials, they saw that the coworking office-space company was bleeding cash. Before long, WeWork’s hard-partying CEO got the boot, and the IPO was yanked off the docket entirely.

That’s just the most salient example. But I’m sure we all remember the first time we found an exciting company, only to see it fall into a hole (or off a cliff). Or the first time we took profits off the table but had to stop the self-congratulations when the stock went even higher…without us.

That being the case, I’ve found it’s best to take your ego – and especially your emotions – out of the equation entirely. By writing stock-picking algorithms, then using those formulas to screen every single investment prior to purchase, I sleep better at night. And, frankly, I make better gains.

Along the way, I’m happy to say, my system has steered me clear of all the most common pitfalls of “emotional investing.”

Over the last week, I’ve been reviewing the most common biases, traps and mistakes that can torpedo your portfolio in my Peak Performance Series at Market360. I’m wrapping that up today with one final thought:

In the current crop of IPOs, some of the biggest “media darlings” have turned out to be the biggest losers, thus far.

If you were surprised by that, I’d respectfully point out that the reason is right in front of us.

When the media is hyping up a stock, sometimes you’ve got to switch off the TV, put down your phone, or bypass the article. It’s all too easy to be swept up in a “great” story. But with an IPO, the story is all about the bright futures and great potential of these companies…rather than real facts and trends – the proven precursors of a successful investment. In short, it’s just too early to invest in these things.

And Wall Street is starting to wise up to that.

Despite the Renaissance IPO ETF (IPO) being up, several of the most anticipated IPOs of 2020 are now down off their highs. Take Airbnb Inc (ABNB), for example. The stock is down 8% from its December high. The vacation rental app created quite a buzz when it went public but faced some issues during the restrictions of the pandemic.

But when you subject it to the eight-point formula behind my stock-picking system, Airbnb just doesn’t measure up.

For example, Airbnb is not profitable and is not expected to achieve profitability this year, and its sales just isn’t strong enough to tempt me. Nor are its operating margins.

Another highly anticipated IPO of 2020, Snowflake, Inc (SNOW) recently fell from grace.

Snowflake was one of the largest IPOs of 2020, and actually turned out to be the largest software IPO of all time. Even Warren Buffett’s flagship investment firm, Berkshire Hathaway (BRKB), invested in it at the tune of $320 million worth of shares.

The stock officially hit the trading floors on September 16 at $245 per share. By early December, it had surged 75% to a high of $429. However, since its peak in December, SNOW’s gains have fallen by about 30%.

The trouble began with SnowFlake’s third-quarter report. Wall Street analysts were expecting a loss of $0.26 per share for SNOW’s third quarter. But SNOW lost $1.01 per share. It just goes to show the value in holding out for a proven profit engine.

Cool stocks are fun to chat about with your friends. But successful investments aren’t always “cool.” The stocks we’ll use in Project Mastermind might not be. However, I do see the potential for 100%, 200% and even 500% gains.

That’s not to say that Airbnb, Snowflake (or, heck, even WeWork) might not make 500% in their day. I have my doubts, sure. So, for now, I’m staying away.

All that said, it’s not hard to understand why so many investors like IPOs: They want to get in on the ground floor of a stock that could skyrocket. Maybe in a few years, once they’ve established real revenue and profits, some of their stocks will double or triple, or more.

However, the stocks I’m looking at appear likely to deliver those gains in months instead of years. And without taking extraordinary risks.

I hope you enjoyed our Peak Performance Series, and you’re ready to banish the most pernicious biases from your investing. I’ve got my eye on the upcoming earnings season, and I’ll be back with more on that topic soon. In the meantime, if you missed my Project Mastermind presentation, click here to learn more and get in on the action.

A Better Way to Predict the Future 

Imagine watching an NBA basketball game, and Lebron James is having a terrific game. He has just made six shots in a row. The game is close, and Lebron is clearly lining up to take another jump shot.

What are the odds that he is going to make that shot?

In basketball, players and coaches will often talk about the “hot hand.” This refers to the phenomenon that someone who has made several baskets in a row has a greater chance of making the next one.

But that’s a fallacy. The odds that Lebron James or any other player will make his next shot remains the same, regardless of how many baskets they have made previously.

The belief in the “hot hand” is a well-studied example of Recency Bias.

And if you don’t know the term, you certainly understand Recency Bias if you’ve ever had an annual performance review at your job.

Odds are that your supervisor remembers a lot of what you’ve done in the last month but can’t remember work completed nine months ago. As a result, you’re more likely to be judged for the last month, than the last year.

And this same bias is likely affecting your portfolio, too.

Now, as you know, this is the Peak Performance Series at Market360. Each day, I’m detailing the human behaviors that can cost us big money as investors… and how you can neutralize their costly effects.

The human brain is a marvelous tool for creating art, music, language, and engineering feats, but it’s a terrible tool for investing.

The more you know about the workings of your own mind, the “bugs” inside it, and how they work against our investment performance, the more you can develop strategies to mitigate the negative effects of those bugs.

Last week, we talked about Overconfidence, Disposition Effect Bias, Self-Attribution Bias and Crowd-Seeking.

In today’s essay, I’ll detail Recency Bias, how it works, and how you can avoid it.

Online Gaming Winner

In investing, Recency Bias occurs when a stock has momentum, either up or down. If a stock has been going up for the last six months, folks naturally believe it is likely to keep going up.

The inverse also happens. If a stock hasn’t gone up in six months, it seems likely to not turn around and go up any time soon.

On a wider level, if it has been 10 years since the last bear market (sound familiar?), investors are more likely to believe one is not coming soon.

But using Project Mastermind, we don’t need to rely on momentum to tell us which stocks to buy or sell. We use math and the latest technology to find the stocks that are about to break out to the upside – regardless of how they have performed recently.

In December 2016, the system that became Project Mastermind found SINA Corporation (SINA) – an online gaming company in China.

During the third quarter in 2016, SINA reported a 21% increase in total revenues and a 21% jump in advertising revenues. Income from operations surged 147%. Net income per share was $0.56, which topped estimates for $0.34 by 64.7%.

Just two months after I made my recommendation, the stock was up 23%. Just between mid-May and June 2017 the stock soared 41%.

IMAGE

Most analysts don’t even cover stocks this small, or they recommend them after their big run up. That’s where Recency Bias can cost you money.

However, as we just saw, if you can find the right stock BEFORE that next major event… you can make large gains in a much shorter period of time.

But you don’t have to let your future be governed by Recency Bias or any of the other biases we have covered in the Peak Performance Series.

All you need is the right tools.

That’s why I developed my stock grading system.

Instead of eyeballing a stock chart and seeing how it has performed lately, my system runs the numbers using thousands and thousands of points of data (fundamentals as well as momentum indicators). It finds the very best names and sends me an alert that a stock is about to skyrocket. Because the alert is developed using only data, I don’t have to worry about falling victim to Recency Bias.

Join me now and you won’t have to worry about that, either.

Instead, you can go back to investing in your retirement. And if you’ve already started investing, the gains with my Project Mastermind can help you supercharge it.

I’m expecting some of the fastest gains in my career – we’re talking about moves of 100%, 200% and even 500% in months instead of years. That being said, the key is not to get impatient…or greedy. My system isn’t capable of that; it simply looks for the same precursors that have portended every great stock play of my career. Click here to find out more.

Tomorrow, I will be issuing a brand-new Buy Alert for two companies based on Project Mastermind. Both companies are well-positioned to post stunning earnings results in their coming earnings reports (one of which will be releasing its quarterly numbers this Thursday morning). I look for these earnings reports to dropkick these stocks and drive them higher, so now the time to get in before they start firing on all cylinders.

I don’t want you to miss out once these stocks really take off, so make sure to sign up here to get my buy advice.

Note: These recommendations are flashing all the same signals as the other winners I’ve mentioned lately. The secret to this is simple: Through hundreds of hours of research, I discovered how an elite type of stock consistently outperformed the broad market, year in and year out. Then I isolated the eight key qualities that these super-performers shared.

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 69 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
ATHM Autohome, Inc. Sponsored ADR Class A B C B
BABA Alibaba Group Holding Ltd. B C B
EA Electronic Arts Inc. B C B
F Ford Motor Company C A B
GOOGL Alphabet Inc. Class A B B B
HTHT Huazhu Group Ltd. Sponsored ADR B D B
PCTY Paylocity Holding Corp. B B B
TAL TAL Education Group A C B
TTM Tata Motors Limited Sponsored ADR B B B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AMGN Amgen Inc. C C C
IEX IDEX Corporation C C C
NUE Nucor Corporation C C C
SNP China Petroleum & Chemical Corporation D B C
TRV Travelers Companies, Inc. D B C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABT Abbott Laboratories C C C
ALLY Ally Financial Inc C C C
ANET Arista Networks, Inc. C C C
APTV Aptiv PLC C C C
BKI Black Knight, Inc. C B C
BLL Ball Corporation C B C
CCC Clarivate PLC B D C
CL Colgate-Palmolive Company C C C
CP Canadian Pacific Railway Limited B C C
DB Deutsche Bank AG C B C
FNV Franco-Nevada Corporation C B C
GOLD Barrick Gold Corporation B C C
JHX James Hardie Industries PLC C B C
KDP Keurig Dr Pepper Inc. C C C
MNST Monster Beverage Corporation C C C
NDAQ Nasdaq, Inc. C C C
NEE NextEra Energy, Inc. C C C
PAYC Paycom Software, Inc. C C C
SJM J.M. Smucker Company C C C
STM STMicroelectronics NV ADR RegS C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BIP Brookfield Infrastructure Partners L.P. D D D
BMO Bank of Montreal D B D
BURL Burlington Stores, Inc. D D D
BX Blackstone Group Inc. Class A D B D
CCI Crown Castle International Corp D D D
CE Celanese Corporation D C D
CG Carlyle Group Inc D B D
CM Canadian Imperial Bank of Commerce D C D
CNC Centene Corporation D B D
CPRT Copart, Inc. D C D
CRH CRH Plc Sponsored ADR D C D
CSX CSX Corporation D C D
CTXS Citrix Systems, Inc. D C D
DOV Dover Corporation D C D
EXPE Expedia Group, Inc. C D D
FMS Fresenius Medical Care AG & Co. KGaA D C D
GE General Electric Company D C D
HCA HCA Healthcare Inc D D D
HON Honeywell International Inc. D D D
KEY KeyCorp D B D
LYFT Lyft Inc Class A D D D
MTN Vail Resorts, Inc. D D D
NDSN Nordson Corporation D D D
NTCO Natura & Co Holding SA F B D
PG Procter & Gamble Company D C D
PNC PNC Financial Services Group, Inc. D C D
PPG PPG Industries, Inc. D C D
STX Seagate Technology PLC D C D
TM Toyota Motor Corp. Sponsored ADR D C D
TU TELUS Corporation D C D
UNP Union Pacific Corporation D C D
WRK WestRock Company C 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

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 74 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
ALLY Ally Financial Inc B C B
ALNY Alnylam Pharmaceuticals, Inc B C B
ASX ASE Technology Holding Co., Ltd. B B B
EXAS Exact Sciences Corporation B D B
GM General Motors Company B A B
KDP Keurig Dr Pepper Inc. B C B
LH Laboratory Corporation of America Holdings C A B
LLY Eli Lilly and Company B C B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BEN Franklin Resources, Inc. C C C
BSAC Banco Santander-Chile Sponsored ADR C C C
CG Carlyle Group Inc D B C
CM Canadian Imperial Bank of Commerce C C C
DISCK Discovery, Inc. Class C D C C
HAL Halliburton Company C C C
LDOS Leidos Holdings, Inc. D C C
NBIX Neurocrine Biosciences, Inc. C D C
PNC PNC Financial Services Group, Inc. D C C
STX Seagate Technology PLC D C C
VIACA ViacomCBS Inc. Class A C B C
WMB Williams Companies, Inc. D C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABB ABB Ltd. Sponsored ADR C C C
ANSS ANSYS, Inc. B C C
ATHM Autohome, Inc. Sponsored ADR Class A C C C
BBL BHP Group Plc Sponsored ADR C C C
BR Broadridge Financial Solutions, Inc. C C C
CABO Cable One, Inc. C C C
CHRW C.H. Robinson Worldwide, Inc. B C C
CSGP CoStar Group, Inc. B C C
EA Electronic Arts Inc. B C C
EDU New Oriental Education & Technology Group, Inc. B C C
GIS General Mills, Inc. C C C
GOOG Alphabet Inc. Class C C B C
GOOGL Alphabet Inc. Class A C B C
GRMN Garmin Ltd. C B C
INTU Intuit Inc. C B C
MCK McKesson Corporation C C C
MGA Magna International Inc. C C C
MS Morgan Stanley C C C
NLOK NortonLifeLock Inc. B C C
ORCL Oracle Corporation C C C
PCTY Paylocity Holding Corp. C B C
PKX POSCO Sponsored ADR C C C
RACE Ferrari NV C C C
SHW Sherwin-Williams Company C C C
STE STERIS Plc C C C
SWKS Skyworks Solutions, Inc. C C C
VRSK Verisk Analytics Inc C B C
XPO XPO Logistics, Inc. C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BF.A Brown-Forman Corporation Class A D C D
CCEP Coca-Cola European Partners Plc D C D
CMCSA Comcast Corporation Class A D C D
CNQ Canadian Natural Resources Limited D C D
ECL Ecolab Inc. D D D
ELAN Elanco Animal Health, Inc. D D D
GPC Genuine Parts Company D C D
GPN Global Payments Inc. D C D
HEI HEICO Corporation D C D
HSY Hershey Company D C D
IEX IDEX Corporation D C D
INFO IHS Markit Ltd. D C D
IT Gartner, Inc. D C D
JKHY Jack Henry & Associates, Inc. D C D
MCO Moody’s Corporation D C D
MPW Medical Properties Trust, Inc. D C D
NUE Nucor Corporation D C D
PCG PG&E Corporation D D D
PEP PepsiCo, Inc. D C D
ROP Roper Technologies, Inc. D C D
SBAC SBA Communications Corp. Class A D C D
SBUX Starbucks Corporation D C D
SSNC SS&C Technologies Holdings, Inc. D B D
SWK Stanley Black & Decker, Inc. D B D
WCN Waste Connections, 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

Finding Stocks Poised to Skyrocket

Imagine how your life would be different with just a few critical calls in the market.

Imagine your life if you had bought:

  • Microsoft for 39 cents per share.
  • Apple for $1.38 per share
  • Cisco for 50 cents per share.

I recommended those stocks at those prices….and my subscribers collected massive gains.

And I live a comfortable life because of those calls and many, many others with similar huge gains.

I didn’t achieve those gains with market timing, or just by getting lucky.

I’m a numbers guy.

I have loved math my entire life and I have used math and technology to help me find the stocks poised to make huge moves in the market.

But I still wasn’t satisfied. I knew that math and technology could lead me to find the stocks that are poised to soar in a much shorter period of time.

I’ve been working on this project for years, and now – finally – I’m ready to share it with everyone.

I call this effort “Project Mastermind.”

Even just a few years ago, this kind of analysis was more like a dream than reality.

Using modern technology and loads of data, I am able to identify which stocks are ready to skyrocket, and the gains can come in months, not years!

Gains like these can be a retirement game changer. A chance to collect triple-digit returns in a short time.

And now, I’m ready to unveil this system to the world.

We all know technology is changing the world around us, and its’s changing the way we invest too.

Click here to hear more from me about how my system works, and tune in today at 4 p.m., as I unveil my system and give you my #1 Project Mastermind stock!

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:

History Repeats Itself (And You Can Cash In)

There’s a bit of controversy in the market right now. One camp says, “Stocks are about to soar. The fourth-quarter earnings season is here!” The other camp says, “There’s too much headline risk from rising political tensions, the coronavirus pandemic, struggling U.S. economy and more.”

So, which is it?

Folks, the numbers don’t lie. The analyst community has continued to increase its fourth-quarter earnings outlook over the past three months, which bodes well for wave-after-wave of quarterly earnings surprises. According to FactSet, the S&P 500’s fourth-quarter earnings are now forecast to decline 8.8% year-over-year, which compares to previous forecasts for a 12.7% decline.

So, just keep watching the market’s best stocks, and buy the dips. Don’t get too distracted by the naysayers. They’ll always find something negative.

When I was in college, for example, my economics professor told me that the stock market could not be beat… that you might as well put your money into index funds and call it a day.

But then I wrote an algorithm that crushed the S&P by a factor of more than 3-to-1. My algorithm worked so well, in fact, that I even began publishing stock recommendations out of my dorm room. I wasn’t even 19 yet!

Yep, new technologies and investing can be a powerful combination, if you have a few programming skills.

I’m proud to say I was there for some of the biggest success stories in the past 30 years. Let’s take a quick look back, because these events are still very instructive today. Keep these lessons in mind next time there’s a bad earnings headline, or some other excuse for the “permabears” to spout gloom and doom on TV.

How I Discovered the Most Innovative Companies Before The Crowd

I’m an investor who likes to “follow the money.” So, I’m constantly fine-tuning my stock picking system – and finding exciting new applications for my methods. My latest is called Project Mastermind.

And back in the day, I wrote a proprietary trading code that uncovered Oracle (ORCL) when it was trading for just $6 per share… well before it became one of the leading and most valuable software corporations in America and traded north of $45.

It zeroed in on Google (GOOGL) way back before most Americans had even heard of the company. Today, it’s over $1,000 per share!

MarketWatch even recognized me as “The advisor who recommended Google before anyone else.” But it wasn’t really me who first spotted it; it was my proprietary algorithms. All I had to do was know a good thing when I saw it.

That’s also how I uncovered other huge winners too, like Apple (AAPL) and Intel (INTC), all before they became big household names.

In fact, the environment right now feels very much like it did when I bought Intel in the 1980s.

Lessons of the PC Revolution

I vividly remember the days of mainframe computers. That’s what I used back when I was working on my trading algorithms in college. Mainframes were massive and by today’s standards slow and rudimentary.

So I was just as excited as anyone by the PC revolution.

And remember: They all had “Intel inside.”

It was a tiny device – the silicon microchip – that barely anyone had heard of when IBM started putting them into the first PCs. But Intel’s chips were far and away the best.

Today, you’ll still find “Intel inside” just about every PC in the world. And its stock price has gone up 11,875%!

Through hundreds of hours of research, I discovered how an elite type of stock consistently outperformed the broad market, year in and year out. After extensive analysis, I isolated the eight key qualities that these super-performing stocks shared… and I developed a system for riding them.

Now, on January 19, at 4 p.m. ET, I’m hosting a special event where I unveil Project Mastermind and reveal the stock, I’ve rated number one based on insights from Project Mastermind – ticker symbol and all. Click here to sign up and join us.

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 84 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
APTV Aptiv PLC B B B
BBL BHP Group Plc Sponsored ADR B C B
FFIV F5 Networks, Inc. B C B
FRC First Republic Bank B C B
GRMN Garmin Ltd. B B B
MGA Magna International Inc. B C B
MOS Mosaic Company B C B
NDAQ Nasdaq, Inc. B C B
ON ON Semiconductor Corporation B B B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BCH Banco de Chile Sponsored ADR C C C
CE Celanese Corporation C C C
CNQ Canadian Natural Resources Limited C C C
CRH CRH Plc Sponsored ADR C C C
DISCA Discovery, Inc. Class A D C C
GE General Electric Company D C C
GPC Genuine Parts Company D C C
HBAN Huntington Bancshares Incorporated C C C
KEY KeyCorp D C C
NUE Nucor Corporation C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ACN Accenture Plc Class A C C C
AJG Arthur J. Gallagher & Co. C B C
AKAM Akamai Technologies, Inc. C C C
CAG Conagra Brands, Inc. C B C
CCK Crown Holdings, Inc. C B C
CHKP Check Point Software Technologies C C C
CHTR Charter Communications, Inc. Class A C C C
CPRT Copart, Inc. C C C
CRM salesforce.com, inc. C B C
CTAS Cintas Corporation C C C
EFX Equifax Inc. C B C
EL Estee Lauder Companies Inc. Class A C C C
EXAS Exact Sciences Corporation B D C
EXPD Expeditors International of Washington C C C
FB Facebook, Inc. Class A C B C
FICO Fair Isaac Corporation C B C
ISRG Intuitive Surgical, Inc. C C C
LEN Lennar Corporation Class A C B C
LEN.B Lennar Corporation Class B C B C
LH Laboratory Corporation of America C A C
LLY Eli Lilly and Company B C C
NVO Novo Nordisk A/S Sponsored ADR C C C
PG Procter & Gamble Company C C C
PLAN Anaplan, Inc. C C C
TAL TAL Education Group Sponsored B C C
UBER Uber Technologies, Inc. B D C
WDAY Workday, Inc. Class A C C C
ZTS Zoetis, Inc. Class A C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ADP Automatic Data Processing, Inc. D C D
ANTM Anthem, Inc. D C D
ARE Alexandria Real Estate Equities, Inc. D C D
BEN Franklin Resources, Inc. D C D
BMY Bristol-Myers Squibb Company D C D
CG Carlyle Group Inc D B D
COO Cooper Companies, Inc. D D D
DRE Duke Realty Corporation D C D
EQH Equitable Holdings, Inc. D D D
EXR Extra Space Storage Inc. D C D
HMC Honda Motor Co., Ltd. D B D
INVH Invitation Homes, Inc. D B D
LDOS Leidos Holdings, Inc. D C D
MA Mastercard Incorporated Class A D D D
MDLZ Mondelez International, Inc. Class A D C D
MMC Marsh & McLennan Companies, Inc. D C D
PAYX Paychex, Inc. D C D
PFE Pfizer Inc. D C D
PLD Prologis, Inc. D C D
PSA Public Storage D D D
ROST Ross Stores, Inc. D C D
RYAAY Ryanair Holdings Plc Sponsored ADR C F D
SPGI S&P Global, Inc. D C D
STX Seagate Technology PLC D C D
SUI Sun Communities, Inc. D B D
TDG TransDigm Group Incorporated D D D
TFX Teleflex Incorporated D C D
TRI Thomson Reuters Corporation D C D
TRU TransUnion D C D
TRV Travelers Companies, Inc. D C D
TXT Textron Inc. D C D
ULTA Ulta Beauty Inc D D D
V Visa Inc. Class A D C D
VRSN VeriSign, Inc. F C D
XEL Xcel Energy Inc. D C D
YUM Yum! Brands, 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

How AI is Helping in the Fight Against COVID-19

2020 may well have been one of the most significant years for the healthcare industry in decades, as companies produced COVID-19 vaccines at lightning speed.

Artificial intelligence (AI) was a major player in creating a COVID-19 vaccine in literally record time, with several big-time healthcare companies – Pfizer (PFE), AstraZenenca (AZN) and Moderna (MRNA) – bringing COVID-19 vaccines to market in a matter of months. For some perspective, it took about four years for the mumps vaccine to be rolled out in the 1960s.

So far, 5.3 million people have been vaccinated in the U.S. Healthcare workers and residents of long-term care facilities were offered the vaccine first. Next in line to be vaccinated are frontline essential workers and people over the age of 75.

The reality is AI plays a huge role in the future of healthcare, due to its predictive analysis and essentially limitless access to information. All of the drug trial and vaccine data that needed to be analyzed was done significantly faster thanks to the help of AI.

The technology also aided researchers by suggesting chemical modifications, identifying existing drug candidates that could be repurposed, and scanning other research from data libraries to assist in the making of the vaccine.

Outside of vaccines, AI assisted in predicting COVID-19 patient outcomes. An algorithm was created using lab test and chest x-ray data to determine who is at the highest risk of needing intubation once arriving at the hospital. This helped doctors make more informed decisions and, ultimately, saved lives.

All of this AI technology is helping the healthcare industry grow at an incredible rate. Since 2018, the sector has increased by an average of 4.5%. In 2019 alone, Americans spent $3.65 trillion on healthcare, which amounts to 17.8% of the entire GDP.

Clearly, there’s a significant amount of growth that remains in this sector, and to my InvestorPlace colleague, Matt McCall, and me, that spells opportunity.

It’s why we recommended a healthcare company with a new type of software that assists in drug discovery and development to our Power Portfolio 2021 in December. It can help predict better drug study outcomes, help scientists have a better understanding of potential new medicines and use data to improve drug formulas and optimize their designs.

We like that the company sees only one significant competitor at the moment. While new competition can never be ruled out, the barriers for entry in the software industry are high thanks to regulatory considerations.

This strong competitive position has led to consistent revenue growth and increasing profitability over the last five years. The company has no debt and a growing cash balance, positioning it well to invest for more growth both internally and through further acquisitions.

This isn’t the only healthcare company we like right now, there are three other companies in our Power Portfolio that are great buying opportunities. For full details, sign up here.

The bottom line: There’s a lot of potential in the healthcare space thanks to new technologies, and we believe that we have found the best high-quality stocks to play the massive upside. If you want to get in early, now is the time to join us.

 

P.S. Matt and I just released another tech stock recommendation for our Power Portfolio 2021 on Wednesday that is leading their market. This company makes semiconductors that have special capabilities which lends them particularly useful in the expansion of 5G and the Internet of Things (IoT). Its earnings are expected to surge a stunning 285% over the next couple of years, so there is no better time to invest than now. For more information on this stock, click here. 

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 41 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
ACN Accenture Plc Class A B C B
ADI Analog Devices, Inc. B C B
BHP BHP Group Ltd Sponsored ADR B C B
CAG Conagra Brands, Inc. B B B
CTAS Cintas Corporation B C B
CTVA Corteva Inc B C B
NVO Novo Nordisk A/S Sponsored ADR Class B B C B
PG Procter & Gamble Company B C B
PKG Packaging Corporation of America B C B
PKX POSCO Sponsored ADR B C B
SWKS Skyworks Solutions, Inc. B C B
ZTS Zoetis, Inc. Class A B C B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ANTM Anthem, Inc. C C C
BEN Franklin Resources, Inc. C C C
BMY Bristol-Myers Squibb Company D C C
CNC Centene Corporation D B C
EXPE Expedia Group, Inc. C D C
GILD Gilead Sciences, Inc. C C C
KB KB Financial Group Inc. Sponsored ADR D B C
MDLZ Mondelez International, Inc. Class A C C C
NTR Nutrien Ltd. C D C
TEVA Teva Pharmaceutical Industries Limited C D C
ULTA Ulta Beauty Inc C D C
V Visa Inc. Class A C C C
VIAC ViacomCBS Inc. Class B D B C
VMC Vulcan Materials Company C C C
XEL Xcel Energy Inc. C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BAH Booz Allen Hamilton Holding Corp. C C C
DHI D.R. Horton, Inc. C B C
FBHS Fortune Brands Home & Security, Inc. C B C
LBRDA Liberty Broadband Corp. Class A C C C
LBRDK Liberty Broadband Corp. Class C C C C
SRPT Sarepta Therapeutics, Inc. B D C
WHR Whirlpool Corporation C B C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BCH Banco de Chile Sponsored ADR D C D
CM Canadian Imperial Bank of Commerce D C D
GE General Electric Company D C D
MSI Motorola Solutions, Inc. D D D
OTEX Open Text Corporation D B D
TDY Teledyne Technologies Incorporated D C D
WPC W. P. Carey Inc. D 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

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