| There’s more than one path to success “There are many paths up the same mountain.”
That’s a bit of ancient spiritual wisdom that can serve you well as an investor.
After all, if you only choose one path, you’re likely to get frustrated when the path is blocked. You need to use more than one method to make investing gains.
At InvestorPlace, we’re lucky to have several different analysts who can show you different ways up the mountain to help you reach your financial goals. The “Iron Law” finds a quick winner On any day, you can find investing news and views in newspapers, television, radio, podcasts, blogs, Twitter, YouTube, Reddit, TikTok …
There are hundreds of sources of information you can engage with. And every one of them is looking for an angle that will make you click, like, subscribe … or whatever.
Some of the advice is excellent, but it often focuses only on the news of the day – the Fed, OPEC, inflation numbers, unemployment numbers, consumer confidence, etc…
But all that takes a back seat to the “iron law” of the stock market. ADVERTISEMENT Wall Street Legend: The Blueprint for Making Up to $122K Per Week Louis Navellier is sharing the one-percenters’ secret strategy for extracting big income (far more than dividends pay!) from ordinary stocks. This secret is one reason why his weekly pay is over six figures, and he’s spilling the beans. Anyone with a few minutes to spare can watch his new video. To those who don’t know, an “iron law” is a law or controlling principle that is incontrovertible and impossible to stop.
Investing legend Louis Navellier, editor of Growth Investor, often refers to the “iron law” of the stock market that has helped guide his investing for more than 30 years.
Here it is in one line: The iron law of the stock market says that if a company massively grows its sales and earnings, its stock price will grow too.
That has been a pillar of Louis’ investing style for more than 30 years. And his success has turned him into a legend among growth investors – so says The New York Times. Just recently, Louis’ system has produced several winners, and one in particular caught my attention.
About four months ago, Louis recommended Lamb Weston (LW) holdings. Here is what he wrote in that Growth Investor recommendation:
In the most recent quarter, Lamb Weston achieved earnings of $231.9 million, or $1.60 per share, and sales of $1.12 billion. That represented 678.2% year-over-year earnings growth and 14.4% year-over-year sales growth. Adjusted earnings were $0.75 per share, which crushed estimates for $0.49 per share by 53.1%.
Looking ahead to the current quarter, analysts expect earnings of $0.73 per share on $1.14 billion in sales. That represents 46% year-over-year earnings growth and 13.6% year-over-year sales growth. The analyst community has also upped earnings estimates over the past three months, which bodes well for a fifth-straight quarterly earnings surprise.
I should also add that Lamb Weston is a tantalizing buy right now because it’s a strong, predominantly domestic company that’s not adversely impacted by a strong U.S. dollar ADVERTISEMENT NEW: #1 Stock for a Seismic Market Shift We've found evidence of an ultra-rare market phenomenon forming. It's called a Convergence Shockwave, and it means you have a brief window to capture decades’ worth of S&P gains in just a fraction of the time. To discover how you could bank 1,000% gains with the momentum behind this shockwave, click here for details. Last week, LW reported quarterly earnings and it crushed them. Here was Louis’ update: Lamb Weston Holdings, Inc. (LW) crushed analysts’ expectations for its third quarter in fiscal year 2023 on Thursday morning. Third-quarter sales rose 31% year-over-year to $1.25 billion, beating estimates for $1.16 billion. Adjusted earnings soared 125% year-over-year to $207 million, or $1.43 per share, which beat estimates for $0.99 per share by 44.4%.
In the wake of the strong quarterly results, Lamb Weston increased its outlook for full year 2023, commenting “We expect this momentum will continue through this fiscal year and provide a solid foundation for fiscal 2024.”
For fiscal year 2023, Lamb Weston expects total sales between $5.25 billion and $5.35 billion, up from previous estimates for $4.8 billion to $4.9 billion. Adjusted earnings per share are forecast to be between $4.35 and $4.50, compared to previous estimates for $3.75 to $4.00. In comparison, the company reported total sales of $4.1 billion and adjusted earnings per share of $2.08 in fiscal year 2022.
The increased guidance is also well above analysts’ current expectations for full-year adjusted earnings of $3.92 per share and sales of $5.02 billion, so I expect positive revisions for the year and fourth quarter in the upcoming weeks. And here is how the stock chart looks since Louis recommended the stock. 
Louis is sitting on open gains of more than 24% in four months.
That would be a super gain in any market, but in a market environment characterized more by volatility than anything else, any investor would be happy with that kind of gain.
Louis highlights his top five stock picks every Friday in Growth Investor. And LW is one of them right now. You can find the other four, and more about his latest picks right here. ADVERTISEMENT Millionaire: This Income Strategy Crushes Bonds and Dividends Louis Navellier has topped even Warren Buffett’s track record over multi-year periods with tremendous growth stocks, but in order to help cash-strapped Americans, he’s come up with a game-changing income strategy. It could help for anyone looking for $25-100,000 more income annually. Get the full story. A big opportunity as the market turns Meanwhile, Luke Lango, editor of Early Stage Investor, has been explaining to his readers that the technical market indicators are all flashing that we are in the early stages of a new bull market: - inflation is falling,
- the Federal reserve is mostly done raising interest rates after their meeting next week,
- earnings for Q1 are coming in better than expected.
Luke notes that many of the greatest investors in history have made their fortunes buying when stocks are down. Fortunes aren’t made during bull markets, but during bear markets.
A time like this, when the economic macro environment is on the verge of a pivot, is a small window for investors to make just a few decisions that can lead to greater wealth.
Luke explains: Here’s what happens after the Fed pauses a rate-hike campaign. You get a huge stock market rally, usually on the order of 30% over the next 12 months. 
We’re crawling into a new bull market right now. But pretty soon, we will be full-on sprinting into one.
You want to get positioned before this market starts sprinting higher. Earlier this week, Luke held a free event about the Convergence Shockwave to explain why this set up is ideal for investors seeking big gains over the coming years.
He also unveiled a brand-new portfolio designed to help his readers take advantage of this unique position. It includes his top five stocks right now that have potential for big gains as a new bull market begins.
You can check out his presentation about the Convergence Shockwave.
Enjoy your weekend
Luis Hernandez
Editor in Chief, InvestorPlace |
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