What’s behind a 1,100%+ winner from Louis Navellier… a free tool to help you dig up your own 10X winner… where to find even more details on Louis’ quant approach

 

Do you remember this?

In the early 2000s, Monster Energy became a bit of a phenomenon.

Folks in their 20s and 30s switched out coffee for this highly-caffeinated, heavily-sugared can of nervous energy.

The result?

The maker of Monster Energy (Hansen Natural) saw its revenue from drinks skyrocket from $50 million in 2003 to $1.7 billion in 2011, a 34-fold increase…

And legendary investor, Louis Navellier, saw his subscribers make a 1,125% return from Hansen.

From Louis:

From my original buy recommendation of the stock in January 1, 2004, to our sell alert on June 1 2007, we made an incredible 1,125%.

That kind of gain changes lives.

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

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

In today’s Digest, let’s give you a free tool Louis created to help you find this type of winner yourself.

It’s a stock screener that’s rooted in the same quantitative computer algorithms Louis uses to find explosive stocks like Hansen.

This screener gives a stock an instant grade, like a report card, based on eight fundamental factors. You see the individual breakdown per factor, and the overall, holistic grade.

It’s a huge help when it comes to deciding whether a stock is worthy of inclusion in your portfolio – or whether a stock you already own perhaps shouldn’t be in your portfolio.

Let’s get to it.

***The next best thing to having Louis’ proprietary computer algorithms

For newer Digest, readers, Louis is one of the early pioneers of using predictive algorithms to scour the markets for quantitatively-strong stocks. Forbes even named him the “King of Quants.”

As a quantitative investor, he has strict investment rules that are rooted in cold, impartial numbers. When these rules trigger a buy, he buys. When they trigger a sell, he sells. It’s pretty simple.

As you might expect, this reliance on numbers and systems removes a great deal of complexity from investing. It’s also resulted in one of the most envied, multi-decade track records in the investment industry.

Fortunately for you and me, Louis has codified much of his proprietary system, and now offers it to the investment community in the form of his free Portfolio Grader tool.

Think of the Portfolio Grader as a diagnostic that gives investors an instant snapshot of a stock’s financial strength. It focuses on eight metrics:

• sales growth
• operating margin growth
• earnings growth
• earnings momentum
• earnings surprises
• analyst earnings revisions
• free cash flow
• return on equity

To illustrate, let’s say you’re trying to decide between investing in two different retailers – Target and Nordstom. At first glance, these retailers share lots of similarities.

They’re both massive, big-box retailers with a diverse retail inventory and a national footprint. They were both beaten down during lockdowns. And they both stand to benefit from the economic reopening.

Despite those topical similarities, there are huge differences between these companies from an investment perspective.

Target receives an “A” from Louis’ Portfolio Grader. Here’s how the component grades measure up:

Nordstrom, on the other hand, receives a “C” and many its individual component scores are far worse, with several scoring an “F.”

This score differential manifests in the stock returns of the two companies.

As you can see below, over the last two years, Target has soared just under 200%. Meanwhile, Nordstrom has been dead money…up just 7%.

***So, what accounts for the difference in returns here?

It boils down to superior business operations, which manifests in quantifiable data – data that you can track and measure.

You would think that performance results like this would have made a quantitative approach incredibly popular with the investment masses. But that’s not the case.

Here’s Louis on that note:

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

The reason for this failure is simple.

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

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

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

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

I found that incredible success leaves “fingerprints.”

With the Portfolio Grader, you now have access to a tool that’s engineered to identify stocks with such fingerprints.

If your portfolio returns have been disappointing, run your positions through the Portfolio Grader to see what shakes out. And certainly, before sinking money into a new stock, see what grade it receives.

***A deeper dive into Louis’ quantitative system and how it can transform your portfolio

Though the Portfolio Grader is a powerful stock screener, it doesn’t incorporate all the bells and whistles of Louis’ computer algorithms, which help identify the stocks in Louis’ Breakthrough Stocks investment service.

However, last week, Louis held a special Accelerated Wealth Summit live event in which he walked through his stock-selection method in even greater detail. You can get all those details by watching a free replay of the event by clicking here.

Here’s Louis on the benefit of his Breakthrough Stocks quant-based market approach:

My Breakthrough Stocks companies typically post impressive numbers, and subsequently see a jump in stock value as a result.

Right now, my Breakthrough Stocks are characterized by 176.4% average annual forecasted sales growth and 758.2% average annual forecasted earnings growth. In comparison, the S&P 500’s average sales growth is 10.1% and its average earnings growth is 50.3%.

You’ll hear me mention “earnings” and “fundamentals” a lot, so pay close attention to these numbers—they’re the secret to our success.

My system analyses nearly 5,000 stocks every day, grades them according to the individual qualities listed above, and combines the individual metrics to create an overall composite grade for any stock.

Remember, the stocks with the highest ratings get an “A” and the worst stocks get an “F.” Just following that advice could make you a much richer investor. It’s really as simple as A-B-C!

Again, to use that free tool, just click here.

And to learn more about Louis’ complete quantitative system and which stocks it’s digging up that could be the next Hansen Naturals, click here.

Here’s Louis with the final word on how to improve your investment returns:

Stock-price trends can diverge from earnings trends for a while – but over the long term, if a company grows and grows the amount of cash it takes in, its share price is sure to head higher.

That’s how the market works. It’s the “iron law” of the stock market.

And that’s why if you’re looking for stocks with massive upside potential, you should focus on the companies with massive revenue and earnings growth.

Have a good evening,

Jeff Remsburg