| Louis Navellier is an investing icon. Over his 38-year career, he delivered gains for his clients that have earned him the nickname, "the King of Quants" from Forbes and "the earnings whisperer" from CNBC.
The market volatility of the last month has unnerved many investors. But there is no better way to calm your investment jitters than to learn about a system that has forged double and triple-digit profits -- regardless of market circumstances.
I asked Louis to explain how he manages to achieve these gains from the market year after year, whatever the conditions. His system is easy to understand and, more importantly, profitable. He also has promised to provide his #1 growth stock pick, too!
I've learned a lot from Louis Navellier and I know you will too.
Profitably yours,
Luis Hernandez
Guaranteed Growth Stocks for this Volatile Market Volatile market swings make investors jumpy, but you can still buy growth stocks to make double or triple digit returns. By Louis Navellier
Ever since The New York Times called me "an icon among growth investors," most folks think of me as a growth stock guy.
And it's true that I've spent my career helping investors discover quality high-growth stocks that can deliver extraordinary returns, regardless of the state of the market.
I've helped my clients collect more profits in 12 months than most investors collect in 30 years by targeting small-cap stocks with the potential to soar 1,000% or more.
My system has uncovered hundreds of double and triple-digit winners over the years.
And here's the best part, because I'm finding these stocks with high alpha, this system works no matter what's happening in the overall market.
In fact, this system has been successful in every bear market going all the way back to the 1980's.
I was one of the few analysts to make money during the 1987 crash and the bear market in 1993. I averaged nearly 500% in total gains a year during the tech wreck in my blue-chip service.
And in 2008, during the height of the Great Recession, I still closed out over 1,256% in total winning gains.
Simply put, when you're using my quantum scoring system, bear markets could wind up being nothing more than a minor speed bump on your road to retirement.
Here is the story of how I developed my system of identifying these can't-miss stocks, and how you can get in on the action. The Origins of Breakthrough Stocks My passion for Wall Street research first led me, nearly 40 years ago, to my exclusive formula for uncovering market-beating stocks.
Back in college at Cal State Hayward in the late '70s, everyone believed it was impossible to beat the market without taking on excessive risk. "Sure," many said, "some traders can be lucky for a while, but no one can consistently beat the market." At that time, most investors were content to invest in index funds like the S&P 500.
Thankfully, I was taught by a group of open-minded professors who offered me the investing chance of a lifetime. They gave me unprecedented access to Wells Fargo's mainframe computers to build my very own stock selection models. This was before laptops, so this was a tremendous privilege.
With only a calculator and limited access to the computers, I actually started my first newsletter in my dorm room at school. I spent countless hours learning how to read and research market data, and built a stock selection model designed to mirror the S&P 500.
I worked like an investigator who had to re-enact the crime, generating the precise conditions of the S&P -- the same level of risk as the index, and the same industry weighting as the index.
But things didn't turn out as I planned. When I ran the model, my returns came out considerably better than the S&P 500! I was stunned by such results -- and naturally determined to get to the root of what happened.
What I found was that a select group of stocks consistently outperformed the S&P in my model. These were smaller, supercharged companies that all had certain characteristics in common.
Those factors became the basis of my stock selection for my first and longest-running newsletter, MPT Review -- which I have just retooled and improved to be Breakthrough Stocks.
I perfected this method and made thousands of investors rich with my market-beating results year after year.
Our strategy identifies stocks before they become market leaders. Sure you can profit big by buying Apple at $50 a share and selling at $100 -- but what if you buy in at $5 and sell at $100?
This system has been so successful, over the last five and a half years this system has averaged 760% in total gains a year ... including winners and losers and with less risk than investing in an S&P index fund.
This includes a scorching 1,239% in total gains back in 2013 ...
Over 700% in total gains each year in 2014, 2015 and 2016 ...
427% in winning gains in 2017 ...
And over 1,000% in open gains so far in 2018!
Recently, I recommended Intricon Corp. a company that manufactures wearable medical devices. Back in September of last year this stock hit a quantum score of 90 in my system. At the time the stock was trading just under $9 a share.
Look what happened next ...
 Find the Right Stocks So what exactly powers the success of Breakthrough Stocks?
It all comes down to two proprietary formulas I've spent the past 40 years testing, tweaking, and perfecting.
The first is my quantitative formula.
I take the alpha of the stock and divide it by the volatility of the stock.
If you don't know, stocks with high Alpha go up no matter what is happening in the overall market. If the market has a down year ... stocks with high alpha go up. If the market is flat ... stocks with high alpha go up. And if the market is going up ... stocks with high alpha go up even more!
But I also have to look at volatility because sometimes stocks can have alpha for the wrong reasons.
For example, a stock might have high alpha because it's undergoing what's known as a "short squeeze." That's when the people who are shorting a stock on margin are forced to buy back their shares and they bid up the price real quickly. Or a stock may just have high relative strength. Which means short term traders are driving the price action which is not going to give you the big, sustained price moves I'm looking to jump on.
No, my system is designed to find the stocks with a high alpha for the right reasons.
Simply put, if a stock achieves a quantum scores above 90, that stock is in the top 1% of all the stocks across the market and that means the stock has a very good chance of becoming the market's next 10-bagger.
Stocks with a quantum score above 90 are attracting a stampede of elephants stocks that are being driven higher due to investments by the large institutional investors, like hedge funds, mutual funds and ETFs.
I call them elephants, because while a rich individual investor might be investing a couple hundred thousand in a stock, some of the individual companies control $10 billion or more in assets, which means the money they bring to the table absolutely dwarfs what any individual investor could possibly bring.
That's why most big, sustained price moves are driven by these elephants accumulating shares of a stock. My system is designed to target the stocks that are about to set off a stampede of elephants.
Meaning multiple elephants, investing multiple millions if not hundreds of millions are all competing to get into a stock at once.
Which creates a frenzy that could potentially send the price of a stock soaring 1,000% or more over the course of a few years. Eight Fundamental Factors The second step is my fundamental formula.
It's simple: I only recommend stocks that are in tip-top condition, and I avoid companies that are seeing their sales and profits shrink. Here are the eight fundamental factors that we study at Breakthrough Stocks when selecting stocks: - Positive Earnings Revisions. I like to see stocks that have had their earnings estimates increased by Wall Street analysts. This usually tips us off to a stock that's about to "beat earnings."
- Positive Earnings Surprises. Speaking of beating earnings, I also look to see if a stock has been able to beat its earnings estimates, and by how much. This is an important number to watch because it often tells me about a stock that Wall Street isn't paying much attention to or doesn't yet "get."
- Increasing Sales Growth. I also like to see a company that can consistently grow its sales over time. Why? Because it's one number that is hard to fake. My background is in accounting, and I've always made sure to steer away from companies that use questionable accounting practices. This is a solid indicator, which is why my stocks must have at least 25% sales growth.
- Expanding Operating Margins. This simply tells me if earnings are growing faster than sales. A company that's able to expand its operating margins is usually a company that has a dominant position in its industry. This company can raise prices without seeing a drop-off in sales. That's a nice place to be.
- Free Cash Flow. This tells me how much money a company has left over after paying for the costs of its business. A strong cash flow is important because it allows a company to invest more resources in growing its business.
- Earnings Growth. This is the heart of all good financial analysis. As long as any company is able to grow its earnings consistently, its stock will do well. Every Breakthrough Stocks stock must have at least 50% earnings growth.
- Positive Earnings Momentum. It's not enough to see a company's earnings grow -- I also want to see it growing rapidly.
- Return on Equity, or ROE. This is the gold standard. ROE tells me how efficiently a company is managing its resources. I can't interview every senior manager at a company, so I like to think of ROE as a report card for management.
These variables fall in and out of favor, but our extensive backtesting has proven that sales and earnings growth are key to getting a leg up on the market. They are the fuel that turbocharges small caps through any market! Because of how closely we watch sales and earnings at Breakthrough Stocks, we look forward to each and every "earnings season" on Wall Street. Earnings seasons cover the end of a quarter, typically in January, April, July and October.
These are the most pivotal times of the year when companies report their quarterly results. Our Breakthrough Stocks companies always post impressive numbers and see a jump in stock value as a result. You'll hear me talk a lot about "earnings" and "fundamentals," so pay close attention to these numbers -- they're crucial to our success.
Now, not all companies that rank well in these eight fundamental categories will be on the Breakthrough Stocks Buy List. First, Breakthrough Stocks focuses on small- to mid-cap companies with a market size under $10 billion.
Secondly, as I said before, the Buy List is tailored to contain only those stocks with at least 25% sales growth and 50% earnings growth. These stocks are the most powerful on Wall Street and have the greatest potential to bring us big profits.
And remember that we are not options trading. These are not signals that are here today and gone in an hour. We are looking for stocks that are going to go up 1,000% or more over months or years. So, if it takes you a little time to get into a position, you're not missing out on much.
Remember, my system is designed to find these small caps before the elephants start pouring in, which means the gains are going to accumulate over time.
This is not an in and out trading service. I want to hold these stocks for years if they are still bringing in big gains.
I hope you've enjoyed this peek into my exclusive system that has helped thousands of individual investors just like you achieve an average of 116% in total winning gains every single month by finding small cap stocks that are poised to skyrocket in the coming weeks and months.
You still have the opportunity to become part of this success story!
If you're interested in more details about how I achieve these gains, I suggest you click here to watch my Breakthrough Stocks webinar right away.
This webinar will give you all the details you need to get started.
Sincerely,
Louis Navellier
P.S. Over my 38-year investing career, I've helped thousands of people just like you achieve triple digit gains every month with my exclusive system of identifying breakthrough stocks.
I'm still taking a small group of new investors into the Breakthrough Stocks service, and you can still become part of this story.
Click here to watch my Breakthrough Stocks webinar get started.
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