How Inflation Will Affect Your Portfolio in 2022

Yesterday, I explained why stock valuations are not as big a concern as the talking heads all want you to believe. In fact, I went a step further and said that growth stocks are still undervalued. Today, I want to share a video interview between InvestorPlace CEO Brian Hunt and Luke Lango, my InvestorPlace colleague and #1 stock picker on TipRanks, to give you an idea of how Luke expects inflation to impact the stock market. (Full details will be shared on December 7, at 7 p.m. ET, during our special Early Warning Summit, so I encourage you to reserve your spot now.) I hope you enjoy it!

Hi. Brian Hunt here, CEO of InvestorPlace.

Inflation in 2021 has not been the “transitory” phenomenon the Fed promised.

And it appears Americans will be feeling the pinch in their wallets for some time to come.

But how will it affect the market in 2022?

You’ll get some answers December 7 at 7 pm ET during the Early Warning Summit 2022.

Earlier this week, Fed Chairman Jerome Powell testified in front of the Senate Banking Committee and said the emergence of the Omicron variant could lead to more supply-chain disruptions.

It also could lead to more labor shortages as workers are more reluctant to work on site during a pandemic spike.

At the end of the day, inflation is about supply and demand.

Legendary technology stock analyst Luke Lango has a degree in Economics from the “all world” university Caltech. Luke has racked up an impressive record as 2020s #1 stock picker on TipRanks, and a track record that feature 17 stock picks that have gone up 10X.

His assessment of the prospects for inflation goes beyond a lot of what you hear from stock-picking experts in the media, and he’ll explain what he sees during the Early Warning Summit 2022.

If you’re interested, simply click here to reserve your spot for next Tuesday and receive full access to this special video.

In a few days, I’ll share another video where Eric Fry will provide his thoughts on one of the hottest sectors in the market and how folks can profit.

Regards,

Brian Hunt

P.S. As we head into 2022, millions of Americans have many unanswered concerns like increasing inflation, a market crash around the corner, government debt, and the potential of a new global lockdown as COVID surges across the world.

On Tuesday, December 7, at 7 p.m. ET, Louis Navellier, Eric Fry and Luke Lango will give you their investing game plan for 2022.

It’s a way to potentially beat the Dow by 4X next year no matter what happens. Sign up for FREE here.

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:

 

 

Here’s Why Growth Stocks Are Still Undervalued

I’ve been hearing a lot recently about dangerous stock market valuations … and what it means for 2022.

That’s why it’s one of the main themes that you’ll hear about on December 7, at 7 pm ET, during the Early Warning Summit 2022.

You’ve probably seen headlines like the ones below that appeared at Investing.com and The Motley Fool.

Are U.S. Stocks Grossly Overvalued?

Is the Stock Market Going to Crash Again?

On the surface, this concern makes sense. Looked at historically, stocks do seem overvalued. So, they must be due for a pullback, right?

But the financial media likes nothing more than trying to spook investors. It’s why I don’t believe valuations are as big a concern as the talking heads all want you to believe.

In fact, I’ll go a step further and say that, if anything, growth stocks are still undervalued.

I will explain exactly why on December 7, at 7 p.m. ET, during the Early Warning Summit 2022. I will also describe the catalysts that should keep select growth stocks firing on all cylinders in the longer term. I look forward to seeing you there.

If you’re interested, simply click here to reserve your spot for next Thursday and receive full access to this special video.

Tomorrow, I’ll share another video where Luke Lango sits down with InvestorPlace CEO Brian Hunt and previews his thoughts on how inflation will affect the markets, so please stay tuned!

Sincerely,

Signed:
Louis Navellier

P.S. As we head into 2022, millions of Americans have many unanswered concerns like increasing inflation, a market crash around the corner, government debt, and the potential of a new global lockdown as COVID surges across the world.

On Tuesday, December 7, at 7 p.m. ET, Louis Navellier, Eric Fry and Luke Lango will give you their investing game plan for 2022.

It’s a way to potentially beat the Dow by 4X next year no matter what happens. Sign up for FREE here.

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:

 

 

What 2021 Can Teach Us About Investing in 2022

Hi. Brian Hunt here, CEO of InvestorPlace.

As I write, the Omicron variant of the coronavirus has rattled markets. And right now, there are a lot more questions than answers about what’s going to happen.

This is just another twist after two years that have been filled with surprises.

Last year, we faced COVID-19, worldwide economic slowdowns, and one of the biggest, fastest declines in market history. As 2021 started, the world seemed ready to get back to normal, and then the Delta variant reared its ugly head. In the wake of this uncertainty, many investors ran for the hills, triggering severe bouts of volatility in the stock market.

But it’s important to remember that after its initial plunge in 2020, the market recovered to reach all-time highs. Investors who couldn’t stomach the volatility and stepped out of the stock market missed out on a massive rebound.

Louis, Luke, and Eric, on the other hand, stayed calm and watched for opportunities. Because the reality is that you can be successful no matter which way the market turns, you just need to find the right stocks.

Here’s what we mean…

  • In 2021 alone, Louis has booked some big winners, like 155% from Arbor Realty Trust… 123% from Safehold, Inc… and 396% from AppFolio.
  • In 2020, Luke was named the #1 stock picker by TipRanks. In just the matter of a few short years, Luke has managed to uncover 17 stocks that have soared more than 1,000%.
  • And this year Eric closed another 10X winner in a trade on Freeport-McMoRan. Known as “Mr. 1,000%,” Eric now has forty-four 1,000%+ winners to his credit.

Now, the three analysts take very different approaches to investing; Luke and Eric are more of “top down” or “macro” investors, identifying the big trends shaping the economy and dive down into company specifics to find the winners. Louis takes more of a “bottom up” approach, focusing on the detailed numbers that signal whether a company’s stock is about to take off, though he certainly pays attention to the big picture as well.

As you can see, both strategies work.

And they’re all on the same page about the opportunities to grow wealth in 2022.

So, on Tuesday, December 7, at 7:00 p.m. EST, Louis, Luke, and Eric are coming together for the Early Warning Summit.

Click here to reserve your spot for this event now!

During this event, the three analysts will reveal the trends that will have the largest and most immediate impact on the coming year… and how to take advantage of them.

It’s an event like no other, and we can’t wait for you to see what’s in store.

Sign up for the Summit today – because this is an event you won’t want to miss.

Regards,

Brian Hunt

P.S. On Tuesday, December 7, at 7:00 p.m. EST during the Early Warning Summit, Louis, Eric, and Luke will reveal four stock picks that could soar in 2022. All three investing legends see major events rocking the markets in the next year, and these four stocks are the best to own. Click here to save your spot.

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:

 

 

Have the Markets Overreacted to Omicron?

The latest COVID-19 variant has sent markets on a roller-coaster ride the past couple days as researchers, health officials and drug makers scramble to determine how dangerous it will be.

A couple weeks after scientists in South Africa first identified it, the World Health Organization (WHO) on Friday dubbed the new variant “omicron,” from the 15th letter of the Greek alphabet, saying it is a “variant of concern.”

Scientists who sequenced the variant’s genome discovered more than 50 mutations from the original coronavirus. Some of these have the potential to make the virus more transmissible or the immune response (including those generated from vaccines) less effective, though the scientific community is still in the early stages of learning about the virus. That means there are a lot of unknowns regarding this new strain’s potential impact remain.

In response, governments across the globe, including Israel, the U.K. and France, immediately began a travel ban from southern Africa.

Investors on Wall Street panicked Friday, sending both the S&P 500 and the Dow more than 2% lower on the short trading day.

Airline stocks took a hit, oil prices pulled back dramatically and the yield on the 10-year Treasury dropped to 1.48% from 1.64% two days earlier.

But clearer heads prevailed on Monday, with the Dow, S&P 500 and NASDAQ all up 0.9%, 1.3% and 2.6%, respectively.

The major indexes were back down today following comments from Moderna, Inc. (MRNA) CEO Stephane Bancel, who said vaccines may be less effective against the variant. Bancel said it could take months to release a vaccine that specifically targets omicron. Early tests also show Regeneron Pharmaceuticals Inc.’s COVID-19 antibody drug cocktail that specifically targets the virus’s spike protein is less effective against the variant and may need modification.

Still, researchers have indicated other drugs are more likely to stand up against the variant.

Interestingly, Dr. Angelique Coetzee, chair of the South African Medical Association and among the first doctors who spotted the new variant among her patients, has said the patients she’s treated with omicron had “extremely mild” symptoms so far.

Now, these market swings are exasperating, but I don’t think investors should worry too much. We still have to wait for more data to see how our current crop of vaccines and treatments will hold up against the new variant. It’s normal to see markets bounce and then go back and try to re-test the lows amidst such uncertainty.

I prefer to let the dust settle and not knee-jerk react to the headlines.

Meanwhile, the “goldilocks” environment of ultra-low interest rates and strong earnings continues, even if investors are starting to chase fewer, fundamentally superior stocks.

When it comes to vaccines, the pharmaceutical companies have moved quickly to test if the current crop of vaccines and boosters will be effective against the omicron variant.

Pfizer Inc. (PFE) and BioNTech SE (BNTX) said they’re awaiting the results of an investigation into how the variant may adapt to the COVID-19 vaccine in less than two weeks from now.

If a change needs to be made, the companies can do so within about six weeks and begin sending out new vaccines within 100 days.

Pfizer CEO Albert Bourla also recently told CNBC the company’s COVID-19 treatment, Paxlovid, which has yet to receive approval from the Food and Drug Administration, was… “designed with the fact that most mutations are coming in the spikes. So that gives me very high level of confidence that the treatment will not be affected, our oral treatment will not be affected by this virus.”

Johnson & Johnson (JNJ) said it’s started testing its vaccine against omicron, while AstraZeneca PLC (AZN) has begun researching the variant in Botswana and Eswantini and said its vaccine platform can adjust quickly to new mutations.

Moderna is testing three booster candidates against the variant and plans on creating a booster specific to omicron.

So there’s clearly significant profit potential for several biotech companies working on COVID-19 vaccines and medications. But as I have said before, I believe BioNTech stands to be one of the biggest winners in the months ahead when you consider its fundamentals.

Picking the Crème de la Crème

Case in point: For the company’s third quarter, reported on November 9, BioNTech and Pfizer achieved several milestones regarding their COVID-19 vaccine. The vaccine was granted full approval by the FDA in August for individuals 16 years old and older, and a booster was granted emergency use authorization for high-risk individuals and those 65 years old and older. The vaccine also recently received emergency use authorization for children between the ages of five and 11. BioNTech noted that more than two billion doses of the vaccine have now been delivered.

Given the success of its vaccine and strong demand for it, BioNTech achieved blowout results for its third quarter in fiscal year 2021. Third-quarter revenue surged to $7.1 billion, up from $79.7 million in the same quarter a year ago, and topping the consensus estimate for $5.8 billion by 21.5%. The company also reported earnings of $14.31 per share, up a spectacular 385.7% from a year prior and beating analysts estimates for $12.2 per share by 17.4%.

Of course, the company isn’t a one-trick pony, which is another reason why I like the stock. The company is also working on cancer treatments. It’s currently advanced 15 oncology product candidates in 18 ongoing clinical trials.

BioNTech is also working on a malaria vaccine for the African continent and anticipates starting a clinical trial by the end of 2022.

As you can see below, BioNTech is a “Strong Buy” in my Portfolio Grader, with a Total Grade of “A,” and a Quantitative Grade of “A,” signaling institutional buying pressure under the stock.

The stock has increased over 67% since it started climbing November 5, ahead of its third-quarter announcements. So far this year, the stock has rocketed an incredible 345%.

And I’m pleased to say that my Accelerated Profits subscribers have been along for the ride, as my Project Mastermind system flagged BNTX back in April 2021, when the stock was trading around $156.

The bottom line is that BioNTech has the superior fundamentals to keep trekking higher while the world combats COVID-19 and beyond.

But it’s far from the only fundamentally superior stock on my radar right now. My Project Mastermind system found another fundamentally superior stock that is well-positioned to benefit from its biotech offerings. I released the name and buy advice on Monday. If you missed it, simply sign up here and I’ll give you all the details.

Sincerely,

Signed:
Louis Navellier

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:

BioNTech SE (BNTX)

 

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 92 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

This Week’s Ratings Changes:

Upgraded: From Hold to Buy
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AAPL Apple Inc. B C B
ALNY Alnylam Pharmaceuticals Inc. B C B
AXON Axon Enterprise Inc. B B B
BRK.A Berkshire Hathaway Inc. Class A B D B
BRK.B Berkshire Hathaway Inc. Class B B D B
CCI Crown Castle International Corp. B C B
CDW CDW Corp. B C B
CLF Cleveland-Cliffs Inc. B B B
CNA CNA Financial Corp. B C B
CSCO Cisco Systems Inc. B C B
DE Deere & Company B B B
DFS Discover Financial Services B C B
DISCK Discovery Inc Class C B C B
EPD Enterprise Products Partners L.P. B C B
EQIX Equinix Inc. B C B
FNF Fidelity National Financial Inc. B B B
FWONA Liberty Media Corp. Series A Liberty Formula One B C B
GD General Dynamics Corporation B C B
GWW W.W. Grainger Inc. B C B
JBHT J.B. Hunt Transport Services Inc. B C B
K Kellogg Company B C B
MET MetLife Inc. B B B
MLM Martin Marietta Materials Inc. B C B
MU Micron Technology Inc. B C B
NGG National Grid plc Sponsored ADR B C B
NVR NVR Inc. B C B
PEAK Healthpeak Properties Inc. B C B
PPD PPD, Inc. B B B
SBAC SBA Communications Corp. Class A B C B
TECH Bio-Techne Corporation B B B
TECK Teck Resources Limited Class B B B B
WLK Westlake Chemical Corporation C B B
WRB W.R. Berkley Corporation B B B
WSO Watsco Inc. B C B
XLNX Xilinx, Inc. B C B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BBL BHP Group Plc Sponsored ADR C C C
BILI Bilibili, Inc. Sponsored ADR Class Z C C C
BTI British American Tobacco PLC D C C
CPB Campbell Soup Company D B C
CRH CRH Plc Sponsored ADR D C C
ES Eversource Energy C D C
GMAB Genmab A/S Sponsored ADR D B C
HUM Humana Inc. C C C
IEX IDEX Corporation C C C
KMB Kimberly-Clark Corporation C C C
LI Li Auto Inc. Sponsored ADR Class A C C C
MCHP Microchip Technology Incorporation D B C
MKL Markel Corporation C D C
MO Altria Group Inc. C D C
PGR Progressive Corporation C D C
QSR Restaurant Brands International Inc D C C
RPRX Royalty Pharma Plc Class A C D C
SBUX Starbucks Corporation D C C
SWKS Skyworks Solutions Inc. D C C
UL Unilever PLC Sponsored ADR D C C
VMW VMware Inc. Class A D C C
VRSK Verisk Analytics Inc. C C C
WAB Westinghouse Air Brake Technologies C C C
XPEV XPeng Inc ADR Sponsored Class A D C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABEV Ambev SA Sponsored ADR C B C
AXP American Express Company C B C
BXP Boston Properties Inc. B C C
COO Cooper Companies Inc. C B C
CRWD CrowdStrike Holdings Inc. Class A C B C
EA Electronic Arts Inc. C B C
GE General Electric Company C B C
LYG Lloyds Banking Group plc Sponsored ADR C B C
MT ArcelorMittal SA ADR C B C
PCTY Paylocity Holding Corp. C B C
QS QuantumScape Corporation Class A C C C
SHOP Shopify Inc. Class A C C C
TEL TE Connectivity Ltd. C B C
TYL Tyler Technologies Inc. C C C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AMZN Amazon.com Inc. D D D
CCL Carnival Corporation D C D
CI Cigna Corporation D C D
CTSH Cognizant Technology Solutions Corporation D C D
CUK Carnival plc Sponsored ADR D C D
DAL Delta Air Lines Inc. F B D
ETR Entergy Corporation D D D
HDB HDFC Bank Limited Sponsored ADR D C D
MMM 3M Company D C D
OTEX Open Text Corporation D C D
PAYC Paycom Software Inc. D C D
PLTR Palantir Technologies Inc. Class A D C D
PTC PTC Inc. F B D
RCL Royal Caribbean Group D D D
ROP Roper Technologies Inc. D C D
TSM Taiwan Semiconductor Manufacturing Company D C D
WOLF Wolfspeed Inc. D C D
XRAY DENTSPLY SIRONA, Inc. D C D
YNDX Yandex NV 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

10 High-Paying Dividend Stocks to Avoid

Inflation is all over the news. Whether it’s business, consumer or political news, we simply cannot escape it, and folks will continue to debate it.

The Labor Department recently reported that its Producer Price Index (PPI) rose 0.6% in October to an 8.6% annual pace. Yikes! Wholesale gasoline led the surge, rising 6.7% last month. Excluding food and energy, core PPI increased 0.4% in October to a 6.2% annual pace. The Labor Department also revealed that its Consumer Price Index (CPI) soared 0.9% in October to a 6.2% annual pace – or the highest rate in more than 30 years. Core CPI, which excludes food and energy, also rose 0.6% last month to a 4.6% annual rate.

Interestingly, major central banks are still in no hurry to raise key interest rates to squelch inflation. In fact, former Federal Reserve Chair and Treasury Secretary Janet Yellen recently stated, “I’d expect price increases to level off, and we’ll go back to inflation that’s closer to the 2% that we consider normal.”

In defense of Yellen and other central bankers, inflation on a trailing 12-month basis had been decelerating since June 2021, opening the door for the Fed to proclaim next year that inflation was indeed “transitory.”  However, with the resurgence of inflation in October, that argument has been squashed. I would not be surprised if central bankers kick the “transitory” inflation argument down the road and now claim that inflation will be transitory until 2023 or later.

The bottom line: We remain in an inflationary environment.

As a result, more and more people are turning to dividend-paying stocks as good hedges against inflation. This helps investors for a couple of very important reasons.

Firstly, high-yielding dividend stocks actually can outpace inflation in the long term. And while inflation can cause volatility across most of the market, dividends tend to exhibit less volatility than stock prices and earnings.

Dividends are also experiencing their time in the spotlight, thanks to the under-performance of 2020. Last year, many companies were forced to slash dividends in order to meet the bottom line.

However, over the last few quarters, payments to shareholders have been on the rise. For example, the dollar value of dividends paid on the S&P 500 is expected to hit record levels this quarter and for the full year.

For 2021, yearly dividend payouts are up 8.1% from last year’s total of $483 billion to $522 billion, with nearly 300 companies in the S&P 500 raising their dividend this year.

All told, dividends in the second quarter were up 4% from a year ago and up 6.5% from the pandemic lows of the third quarter of 2020.

Now, before you jump into any dividend-paying stock, I should warn you that not all dividend stocks are created equal. But before I explain why, let’s take a step back and talk about what exactly a dividend is.

A dividend is a distribution from a company’s earnings paid directly to a class of its shareholders. It is up to the company as to when (or even if) it is paid. The dividends tend to be paid out on a quarterly basis, but some companies will pay a semi-annual or annual dividend. Company management will always announce when it will be paid – including your deadline to buy the stock in order to receive this payout – and what the dividend will be per share.

Now, the dividend yield varies depending on the company’s actual dividend and where the stock price is at the time. In some cases, you may be looking at a double-digit dividend yield. But as attractive as a double-digit dividend yield may sound, I recommend you pump the brakes before investing. Chasing dividend yields alone can be downright dangerous.

Stocks are not like Treasury bonds or a savings account: There’s no guarantee that you will get your money back. There’s also no guarantee that company will continue paying a dividend. If you choose poorly, you could lose your capital as the stock price falls. Or, that nice juicy dividend could be slashed.

In most cases, dividend yields are tantalizingly high for a reason (the stocks are cheap and rightly so) – and are simply not supported by the fundamental earnings power of the business.

This is why my Dividend Grader is so important. Just like my Portfolio Grader, it uses my proprietary formula to put each stock through a rigorous test, crunching reams of data against a set of criteria I’ve created.

This, in turn, tells us whether the stock is worth investing in or if we should be staying far, far away. Here are a few examples:

As you can see, each company has a huge double-digit dividend yield, but it also receives a “D” or an “F” rating from Dividend Grader, as well as a “Sell or “Strong Sell” recommendation. This is because their dividend trend, dividend reliability, forward dividend growth and earnings are very, very poor.

Now, I don’t want to scare you away from dividends – far from it. I just want you to be aware of the potential risks. Investing in dividend stocks can also be very lucrative. If you get it right, you can make a fortune. Fundamentally strong dividend stocks pack a one-two punch of share price appreciation and a steady stream of income… with payouts that can be twice or five times what you get from a Treasury bond or a bank.

My Growth Investor service features the crème de la crème of dividend growth stocks. A stock only makes it to my Elite Dividend Payers Buy List if it receives a “AA” rating, which means it must have an “A” rating in both Dividend Grader and Portfolio Grader.

In fact, I recently recommended a brand-new coveted AAA-rated stock in my latest Growth Investor Monthly Issue. The AAA-rating indicates an A-rating in Dividend Grader, an A-rating in Portfolio Grader and an A Quantitative grade. In other words, it offers the perfect blend of income, growth and persistent institutional buying pressure.

It has a solid dividend yield, great long-term potential and is still trading below my recommended buy limit. You won’t want to miss out on this exciting opportunity, so make sure to sign up here so I can reveal its name to you.

Once you sign up, you’ll have access to my full Elite Dividend Payers Buy List – chock-full of fundamentally superior dividend-paying companies – and my High-Growth Stocks Buy List, which continues to steadily appreciate.

If you add it all up, my Growth Investor stocks are characterized by 45.7% annual sales growth and 55.1% annual earnings growth – and they’re showing no signs of earnings or sales deceleration. So, my Buy Lists have attracted plenty of attention recently, with my High-Growth Investments Buy List up 3.3% and my Elite Dividend Payers Buy List up 2.7% so far in November.

I should also add that my Growth Investor stocks are trading at only 23.2 times median forecasted 2022 earnings – i.e., my subscribers are not paying a premium price-to-earnings (PE) ratio since our strong quarterly results continue to compress PE ratios.

The reality is millions of Americans are pouring money back into the stock market in search of higher yields and protection from inflation – and they’re seeking out stocks with the strongest fundamentals.

Sincerely,

Signed:
Louis Navellier

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:

 

My 5 Investing Tips to Set Your Portfolio Up for the Long Haul

Thanksgiving is just two days away, and I don’t know about you, but I’m looking forward to spending the extra time with family and friends, eating turkey and watching a little football.

In the spirit of Thanksgiving, I’d like to share my most important investing tips to prime your portfolio to flourish in the coming months. Let’s get right to it.

  1. Invest in high margin companies that dominate their business. A company that’s able to expand its operating margins is usually a company that has a dominant position – such as a monopoly – in its industry. This company can raise prices without seeing a drop-off in sales, and that’s a nice place to be, especially in the current inflationary environment.

Case in point: NVIDIA Corporation (NVDA). For its third quarter in fiscal year 2022, revenue jumped 50% year-over-year to $7.1 billion, topping analysts’ estimates for $6.83 billion. Data center revenue increased 55% year-over-year to $2.94 billion, while gaming revenue rose 42% year-over-year to $3.22 billion. Both were new records for the company.

Third-quarter earnings soared 60% year-over-year to $1.17 per share, compared to $0.73 per share in the third quarter of fiscal year 2021. Analysts were expecting earnings of $1.11 per share, so NVIDIA posted a 5.4% earnings surprise.

Company management commented, “The third quarter was outstanding, with record revenue. Demand for NVIDIA AI is surging, driven by hyperscale and cloud scale-out, and broadening adoption by more than 25,000 companies.”

NVIDIA now expects fourth-quarter revenue of $7.4 billion, up from $5 billion in the fourth quarter of fiscal year 2021.

  1. Along these lines, companies that have margin expansion tend to post bigger earnings surprises. Helios Technologies, Inc. (HLIO), a leading provider of solutions and technology for hydraulics and electronics markets around the world, surged more than 18% in the wake of its third-quarter results in early November.

Third-quarter sales soared 82% year-over-year to $223.2 million, up from $122.6 million in the same quarter a year ago. Earnings surged 105% year-over-year to $34.8 million, or $1.07 per share, compared to $17 million, or $0.53 per share, in the third quarter of 2020.

The consensus estimate called for third-quarter earnings of $0.80 per share on $195.93 million in sales, so Helios Technologies posted a 33.8% earnings surprise and a 14% sales surprise.

Thanks to the better-than-expected third-quarter results, Helios Technologies upped its outlook for fiscal year 2021. Full-year revenue is now forecast to be between $840 million and $860 million, up from previous estimates for $800 million to $830 million. Full-year earnings per share are now expected to be between $3.75 and $4.10, compared to previous forecasts for $3.60 to $3.80.

  1. Invest in companies with strong forecasted sales and earnings. Do you really want to buy stock in a company that’s expecting its growth to slow? As sales and earnings dwindle, so will Wall Street’s interest in the stock. You want to invest in companies that are expecting to be even bigger and better quarter after quarter. Ultimately, these are the ones that will see an increase in institutional buying pressure. As that buying pressure increases, so will the stock price.

I am a stickler about this in all my newsletters. In Growth Investor, my stocks are characterized by 45.7% annual sales growth and 55.1% annual earnings growth. In Breakthrough Stocks, my Buy List stocks are characterized by 52.5% average annual sales growth and 401% average annual earnings growth. And, in Accelerated Profits, my stocks have superior forecasted sales of 27.2% and earnings growth of 43.8% and a strong earnings surprise history of 39.5%.

  1. Look for companies that see positive analyst revisions in the past three months, as these typically post earnings surprises. Kohl’s Corporation (KSS), which I recommend in Accelerated Profits and Breakthrough Stocks and is one of my Platinum Growth Club Model Portfolio stocks, had seen its earnings estimates revised by a whopping 88% ahead of its third-quarter earnings report last week. And its results did not disappointment. For the third quarter, Kohls reported total revenue of $4.6 billion, up 15.6% from $3.98 billion in the same quarter a year ago. Earnings surged 16,400% year-over-year to $1.65 per share, compared to $0.01 per share in the third quarter of 2020.

The analyst community was looking for earnings of $0.64 per share on $4.27 billion in revenue, so Kohl’s crushed earnings estimates by a whopping 157.8% and posted a 7.7% revenue surprise

Thanks to the better-than-expected results, Kohl’s upped its outlook for fiscal year 2021. Full-year sales are anticipated to rise in the mid-20% range year-over-year, up from previous expectations for low 20% growth. Full-year adjusted earnings per share are forecast to be between $7.10 and $7.30, compared to previous estimates for $5.80 to $6.10.

  1. If you’re a dividend investor, focus on companies that are consistently raising their dividends. You want to be sure you’re investing in dividend stocks that have the ability to increase their dividend payments. I check this by looking at the company’s last four dividend payments. Are they increasing? Are they decreasing? Are they staying the same? Decreasing dividend payments are a bad sign (it often means the company isn’t doing well), and you want to avoid those stocks.

Dividend stocks tend to zig when the market zags, which can help smooth your overall portfolio returns. Investors are particularly interested in high-quality dividend-growth stocks right now. The Dow and S&P 500 currently yield more than the 10-year Treasury, so investors searching for yield are turning to dividend-paying stocks.

Where to Invest First

For all investors, old and new, my Portfolio Grader and Dividend Grader are great tools to keep in your back pocket. You simply plug in a stock you like and it will automatically grade that stock for you. An A-rating is a “Strong Buy,” a B-rating a “Buy,” a C-rating a “Hold,” a D-rating a “Sell,” and an F-rating is a “Strong Sell.” You’ll know right away whether the stock you’re interested in is one worth buying or one you shouldn’t touch with a ten-foot pole.

If you’re not sure of where to invest, I encourage you to check out my Platinum Growth Club. I recommend over 100 stocks across all my servicesGrowth Investor, Breakthrough Stocks and Accelerated Profits – which vary from dividend stocks to large-cap stocks to small-cap stocks. You also have exclusive access to my Model Portfolio. These are the crème de la crème of stocks from my services, all handpicked by me. I also offer an Allocation Tool, which will help you allocate your stock portfolio based on your risk tolerance.

But the truth of the matter is that now is the time to get your portfolio ready. Fundamentally superior stocks should benefit from new pension funding in the upcoming weeks and the overall seasonally strong time of year.

My subscribers have the odds in their favor with stocks with phenomenal sales and earnings growth. Join my Platinum Growth Club today so you do, too.

Sincerely,

Signed:
Louis Navellier

P.S. The stock market will be closed on Thursday, November 25, for the Thanksgiving holiday, and then open for a half day on Friday. InvestorPlace and the customer service department will be closed on Thursday and Friday, so I will be back in touch with your next Market360 article on Saturday. I hope you have a wonderful Thanksgiving!

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:

Helios Technologies Inc. (HLIO), Kohl’s Corporation (KSS), 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 129 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
ABEV Ambev SA Sponsored ADR B B B
ADBE Adobe Inc. B C B
ADI Analog Devices Inc. B C B
BDX Becton, Dickinson and Company B C B
BIO Bio-Rad Laboratories Inc Class A B B B
BIO.B Bio-Rad Laboratories Inc. Class B B B B
CHD Church & Dwight Co. Inc. B C B
COO Cooper Companies Inc. B B B
CTLT Catalent Inc. B C B
CVS CVS Health Corporation B C B
DHI D.R. Horton Inc. B B B
DLR Digital Realty Trust, Inc. B C B
DLTR Dollar Tree Inc. B C B
DPZ Domino’s Pizza Inc. B C B
FAST Fastenal Company B C B
HD Home Depot Inc. B C B
IDXX IDEXX Laboratories Inc. B C B
INFO IHS Markit Ltd. B C B
IR Ingersoll Rand Inc. B B B
LEN Lennar Corporation Class A B B B
LEN.B Lennar Corporation Class B B B B
LOW Lowe’s Companies Inc. A C B
MORN Morningstar Inc. B C B
MTD Mettler-Toledo International Inc. B C B
NOC Northrop Grumman Corporation B C B
NVAX Novavax, Inc. B D B
O Realty Income Corporation B C B
PCTY Paylocity Holding Corp. C B B
PEP PepsiCo Inc. B C B
RACE Ferrari NV B C B
REGN Regeneron Pharmaceuticals Inc. B B B
RGEN Repligen Corporation B B B
RH Restoration Hardware C B B
RMD RedMed Inc. B C B
SHW Sherwin-Williams Company B D B
SKM Sk Telecom Co Ltd Sponsored ADR B C B
TREX Trex Company Inc. B B B
VRSN VeriSign Inc. B D B
WBA Walgreens Boots Alliance Inc B C B
WCN Waste Connections Inc. A C B
WPC W.P. Carey Inc. B C B
WSO.B Watsco Inc Class B B C B
ZI ZoomInfo Technologies Inc Class A B C B
Upgraded: From Sell to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
ABC AmerisourceBergen Corporation D B C
ACM AECOM C D C
AEE Ameren Corporation C C C
AEP American Electric Power Company C C C
AGR Avangrid Inc. C C C
AMZN Amazon.com Inc. C D C
ATO Atmos Energy Corporation C D C
AWK American Water Works Company C C C
BSX Boston Scientific Corporation C C C
CCK Crown Holdings Inc. C C C
CI Cigna Corporation C C C
CLX Clorox Company C D C
CTSH Cognizant Technology Solutions Company D C C
DTE DTE Energy Company C D C
ED Entergy Corporation C D C
FB Meta Platforms Inc Class A C C C
GDRX GoodRx Holdings Inc. Class A D C C
HDB HDFC Bank Limited Sponsored ADR C C C
HOLX Hologic Inc. C C C
ITW Illinois Tool Works Inc C C C
KL Kirkland Lake Gold Ltd D C C
LHX L3Harris Technologies Inc C C C
LNT Alliant Energy Corp C C C
NEE NextEra Energy Inc. C C C
NSC Norfolk Southern Corporation C C C
OPEN Opendoor Technologies Inc D C C
OTEX Open Text Corporation D C C
PG Procter & Gamble Company C C C
ROP Roper Technologies Inc. C C C
TER Teradyne Inc. D C C
TTC Toro Company D C C
UNP Union Pacific Corporation C C C
WDAY Workday Inc Class A D C C
WEC WEC Energy Group Inc C C C
WY Weyerhaeuser Company D C C
XRAY DENTSPLY SIRONA Inc. D C C
ZTO ZTO Express (Cayman) Inc. C C C
Downgraded: From Buy to Hold
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
BBVA Banco Bilbao Vizcaya Argentaria C C C
BSY Bentley Systems C C C
C Citigroup Inc. C C C
CCEP Coca-Cola Europacific Partners plc C C C
CNA CNA Financial Corporation C C C
CSCO Cisco Systems Inc C C C
EC Ecopetrol SA Sponsored ADR C B C
EPD Enterprise Products Partners L.P. C C C
FMX Fomento Economico Mexicano D B C
GIB CGI Inc. Class A C C C
HAL Halliburton Company C C C
JBHT J.B. Hunt Transport Services C C C
KHC Kraft Heinz Company C C C
LSXMK Liberty Media Corp. Series C Liberty SiriusXM C B C
MET MetLife Inc. C B C
MFC Manulife Financial Corporation C C C
NUAN Nuance Communications Inc. C D C
PM Philip Morris International Inc. B D C
RDS.A Royal Dutch Shell Plc Sponsored ADR Class A B D C
RDS.B Royal Dutch Shell Plc Sponsored ADR Class B B D C
RTX Raytheon Technologies Corporation C B C
SMFG Sumitomo Mitsui Financial Group C B C
STLA Stellantis N.V. B C C
TAP.A Molson Coors Beverage Company C B C
TECK Teck Resources Limited Class B C B C
TTE TotalEnergies SE Sponsored ADR C B C
UBS UBS Group AG C B C
WBK Westpac Banking Corp Sponsored ADR C C C
WLK Westlake Chemical Corporation C B C
Downgraded: From Hold to Sell
Symbol Company Name Quantitative
Grade
Fundamental
Grade
Total
Grade
AMCR Amcor PLC D C D
BILI Bilibili Inc Sponsored ADR Class Z D C D
CHWY Chewy Inc Class A D C D
CRM salesforce.com inc. D C D
DIS Walt Disney Company D C D
DISH DISH Network Corporation Class A D C D
DOCU DocuSign Inc. D C D
DOW Dow Inc. D B D
EMN Eastman Chemical Company D C D
HST Host Hotels & Resorts Inc. D C D
HTHT Huazhu Group Ltd Sponsored ADR D C D
HWM Howmet Aerospace Inc. D C D
LBRDK Liberty Broadband Corp. Class C D C D
LI Li Auto Inc. Sponsored ADR Class A D C D
NICE NICE Ltd Sponsored ADR D C D
PUK Prudential plc Sponsored ADR D C D
TTWO Take-Two Interactive Software Inc. D C D
WAB Westinghouse Air Break Technologies D C D
XPEV XPeng, Inc. ADR Sponsored 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

A Simple Way to Massively Increase Your Odds of Stock Market Success

Stock traders call it the “hard right edge.” It’s the vertical line on the right side of a stock chart.

It represents the future…uncharted territory.

Lots of investors and commentators like to look back at market history, claiming they knew this or that was about to happen. Most of those claims are bogus… made by people trying to say they knew something they didn’t.

It’s easy to say you had knowledge of something after the fact. It’s easy to play Monday morning quarterback.

But all the fantasies and after-the-fact claims of knowledge are useless when it comes to the “hard right edge” — the uncertain future that determines if your investment decisions result in profits or losses.

No one KNOWS what will happen. However, you can make an educated guess. In fact, it is essential to do so.

In the end, we all aim to have an investment strategy that gets us in the best position possible to achieve success after we make a transaction and move beyond the hard right edge.

Below, I’ll show you one of the ultimate ways to stack the odds in your favor and succeed after crossing that hard right edge. Then I’ll share an exciting announcement about my Breakthrough Stocks.

How to Identify a Stock Breakout in the Making

While we can’t see the future, we can pick up on a trend. And to determine whether a stock’s trend is likely to continue, we just need to know what’s going on beneath the surface.

Is the company posting good sales numbers? And not just in the latest quarter…but over time? Are its earnings meeting Wall Street’s expectations? Better yet, are they exceeding them?

You won’t find out by looking at a stock chart. But, in the long term, they are the kinds of factors that determine whether your investment will succeed (or fail).

All in all, I use eight of these variables in my “Quantum A” system.

When a company rates highly on the eight factors, it becomes a strong buy in my system. When it doesn’t…it becomes a sell.

In 2015, I was skeptical of VMware (VMW) for that reason — even though, at the time, everyone on Wall Street seemed to have fallen in love with it.

Normally, I do like to see the “smart money” getting in. When big, institutional money moves into a stock (or back out), that does have a large impact.

But I wasn’t seeing enough of that momentum. Plus, at the time, VMWare just didn’t measure up on my eight fundamental factors. (The trend in its earnings and its operating margins was particularly weak.)

So, I stayed away. And before long, the lackluster fundamentals translated to poor stock performance.

So, what happens after all this?

If you were looking at that hard right edge, you’d see a stock just trending down.

But VMW did start looking attractive to my system in January 2017, a few months after the company began partnering with Amazon Web Services (one of its biggest competitors). Wall Street investors were stampeding into the stock.

And no wonder, since it started posting great numbers for earnings and operating margins, as well as cash flow, return on equity and the like.

At the end of January, VMWare finally earned my “Quantum A” buy signal.

Before long, the stock went from $87 to $150, and eventually to $200 — a great example of how powerful this stock-picking system can be.

A New “Quantum A” Buy Coming Next Week

I’m particularly excited about smaller companies these days. If you’re looking for growth — even in periods when growth becomes scarce — small-cap stocks are where you’ll get it. And for that reason, I expect this upcoming earnings season to be particularly kind to the highest-quality small caps.

So, next Tuesday, I’ll be recommending a new addition to Breakthrough Stocks. The company is quietly posting phenomenal numbers —tripling its earnings year-over-year.

I’ll be releasing the buy recommendation on Tuesday, after the market close, so readers have the chance to review and act by the opening bell on Wednesday. If you’d like to get in on the action, click here to learn more about Breakthrough Stocks and the system responsible for all of my greatest buys.

Sincerely,

Signed:
Louis Navellier

P.S. Ultimately, spotting the right investment is simple. You buy when the company achieves a “Quantum A” … and you sell when it disappears.

You don’t fall in love. You certainly don’t fall for hype. You may return to that stock someday — but with my system, you know exactly when it’s time to take profits off the table.

That’s why I say there’s no luck and very little skill behind my own success – just hard work…and the result: a proprietary system for picking the best investments of the day.

It’s made it easy to nab market-beating returns — to double your money (or better).

I’m eager to show you what my system is picking up now. Click here to find out 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:

 

Five Overrated Growth Stocks to Avoid Now

The third-quarter earnings season has been an absolute stunner.

Of the 92% of S&P 500 companies that have so far reported their financial results, about 81% topped earnings estimates and 75% have beat sales forecasts. The S&P 500 has posted average earnings growth of 39.1% and average sales growth of 17.5%. To put this into perspective, that’s the third-highest earnings growth and second-highest sales growth since 2008.

Looking forward, however, earnings momentum is tapping the brakes and slowing down for many S&P 500 companies. FactSet anticipates fourth-quarter earnings growth of 20.9% and sales growth of 12.3%. Double-digit earnings and sales growth is nothing to sneeze at, but with year-over-year comparisons growing more difficult, the stock market is growing more selective.

In other words, all the money that’s expected to pour into the stock market in the upcoming months will chase fewer stocks. The smart money will be focused primarily on companies able to maintain robust earnings and sales momentum in the current environment. Those stocks with positive analyst revisions will also garner their fair share of investors’ attention.

It’s a recipe for the cream to rise to the top – while weaker stocks get hammered.

I purposefully designed my Portfolio Grader to distinguish between the two…before the rest of the world catches on.

What I’m looking for are strong fundamentals – good margins, earnings growth, optimism from analysts. That’s the bedrock of my “Quantum A” stock-picking system. These things might sound like common sense, but far too many investors neglect them. And I find that’s often the case with growth stocks that are receiving more hype than they really deserve.

Sure, we all want growth. But often times, eye-popping revenues can hide a lot of evils, and result in much more hype than is really warranted. This sends people stampeding into exactly the wrong names.

Luckily, we can also use my Quantum A system to avoid them. Even if they looked great before.

That was the situation with Enron in the early 2000s.

How My System Detected the Biggest Financial Fraud of All Time

Before Enron became one of the most infamous stocks ever, it was a great growth play.

Enron was once America’s seventh-biggest company, but also “America’s most innovative company” in Fortune magazine (six years in a row).

And at one point, it was a big, flashing, “A”-rated buy in my system. After I recommended the stock, it gained 36%.

Then Enron’s rating started to weaken. This was well before Newsweek declared “Lights out for Enron,” in December 2001. The corruption going on at Enron was yet to be discovered – but according to my system, the fundamentals certainly didn’t justify the hype.

So, we took our profits in Enron in April. It was one of the best moves of my career, it turned out! Other investors, sadly, got wiped out. Enron’s employees lost retirement savings. But we avoided the massacre that ensued a few months later.

Now, Enron is a pretty extreme example. So let me be clear: It does not take a massive financial fraud to wipe millions of dollars from the stock market.

When a stock gets into a bubble, even a much smaller prick will do it.

With that in mind, let’s look at some growth stocks that are simply not worth your money at this time.

No list of overrated growth stocks would be complete at the moment without Amazon.com, Inc. (AMZN). The company misfired badly when it reported results in late October, falling below Wall Street’s estimates for both sales and earnings for the third quarter. The stock has also suffered this year and has fallen well below the broader market’s rise.

But it’s not much of a surprise when you look at its performance for earnings and cash flow. Just take a look at Amazon’s Report Card from my Portfolio Grader.

No wonder Wall Street analysts are pessimistic for the fourth quarter…

Meta Platforms, Inc., formerly known as Facebook (FB), isn’t looking too good in my system, either:

Earnings season has not been too kind to Facebook this time around, nor has press coverage and estimates for the fourth quarter, which are down from a year ago.

PayPal Holdings, Inc. (PYPL) has gotten lots of attention in the press as the company is highly popular for offering easy, affordable, safe and reliable financial services. PayPal is also a major player in peer-to-peer payments through Venmo. However, new peer-to-peer players are popping up, including in e-commerce, that could soon disrupt the company.

And as you can see, falling sales and earnings growth and a subpar operating margin don’t measure up right now.

One of the world’s largest tech companies, Alibaba Group Holding Limited (BABA) fails on the metrics that earn stocks a Quantum A from me. BABA may have had a great “Single’s Day” event recently – the equivalent of Black Friday in the U.S. – but its earnings, margins and cash flow leave a lot to be desired. Add in an uncertain regulatory environment in China, and the cards just don’t align for this stock right now.

The video gaming industry has been on fire in recent years, particularly as folks were forced indoors due to the pandemic. The sector has managed to maintain its momentum as pandemic restrictions let up, but the prior level of growth will be hard to maintain.

Activision Blizzard Inc. (ATVI) is an example of a well-known stock in a hot sector that just doesn’t live up to the hype. The maker of the highly popular World of Warcraft and Call of Duty video games is actually down this year.

It’s little wonder when earnings and sales growth has been down. The stock has also suffered from a lack of interest from institutional investors, as can be seen from my Portfolio Grader’s failing Quantitative Grade.

You’ll notice that all the stocks I named rate fairly well on their return on equity. But as I’ve mentioned, there’s a lot more to a solid investment than that.

So, I’m looking elsewhere for great buys these days.

Four New Quantum A Stocks That Can Soar 500% or More

One of the things my system does best is find solid small-cap stocks.

Besides phenomenal growth, my Breakthrough Stocks are posting great profits and crushing their forecasts. When you can get in on a stock like this early on, when it’s still fairly small, that’s how fortunes get made.

I’ve just published a special report with full details on Four New “Quantum A” Stocks That Can Soar 500% or More as well as my special report, Five Breakthrough Stocks That Could Soar 1,000% in Total. To hear more, click here to check out Breakthrough Stocks and find out what my system has in store now.

These are all excellent buys to get started with right now.

Sincerely,

Signed:
Louis Navellier

P.S. Next Tuesday, after the market close, I will be releasing a brand-new buy that earns a “Quantum A” in my system. For its third quarter, the company posted double-digit revenue growth and triple-digit earnings growth. It also posted a double-digit earnings surprise. I see plenty of upside ahead for the name, which is why it’s a great buy now. Make sure to sign up now so you can get the name and the details of the stock right after I announce it.

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), Alibaba Group Holding Limited (BABA), Meta Platforms, Inc. (FB)

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