Finding the Perfect Small-Cap Stock


Stock - Finding the Perfect Small-Cap Stock

Source: Sergii Gnatiuk/

Before I begin today’s Market360, I’d like to sincerely thank the thousands of investors who took the time to attend my Breakthrough Stocks event yesterday afternoon.

I hope those of you who took part are already putting my Breakthrough Stocks system to good use in targeting the best buys of 2021. If you weren’t able to make it, you can click here to check out the recording.

Since the event generated a TON of interest, I am still fielding questions, but I want to start with this observation: Numbers are everything when it comes to investing.

I avoid the stories that analysts tell in order to convince investors to buy a stock. All too often, Wall Street gets caught up in the story and starts believing its projections as the gospel truth. Storytelling leads investors down a path of underperformance and losses.

So, I stick to the numbers.

I believe that the proof is in the numbers and that a careful study and analysis of the numbers can help us find stocks with growth potential and big gains in the future while avoiding stories and mumbo-jumbo.

An excellent example of this is Boot Barn Holdings, Inc. (NYSE:BOOT), which has been rocking and rolling for months now.

The reality is that the company is prospering from a more confident U.S. consumer and rising retail sales, as Boot Barn Holdings operates more than 200 retail stores in 33 states. Specifically, Boot Barn Holdings offers more than 8,000 different styles of boots — from western boots to work boots to hiking boots — as well as clothing, jeans, hats, belts, jewelry and accessories. And its products are from well-known brands like Carhartt, Wrangler, Ariat, Resistol, Montana Silversmith and Justin.

I recommended BOOT back in June to my Breakthrough Stocks subscribers. Not because of stories about the potential of the boot and clothing apparel industry, but because of the numbers.

You see, I have a proprietary eight-point system that determines if a stock is an urgent buy, or what I like to consider as a “Quantum A” stock. It must have strong sales growth, operating margin growth, earnings growth, earnings momentum, earnings surprises, analyst earnings revisions, cash flow and return on equity.

Ultimately, I want the stock’s Total Grade, which are the fundamentals and buying pressure blended together, to be A-rated. This makes it a strong buy. I will not recommend a stock that is rated lower than an A. That was and is the case with BOOT, as you can see below…

Not Just Another Apparel Stock

The company has surpassed Wall Street’s forecasts for its sales and earnings results for the past three quarters.

During its second fiscal 2022 quarter announcement, which was reported October 27, Boot Barn saw sales jumped 69% year-over-year to $312.7 million, topping estimates for $290.95 million. Online sales accounted for $44.31 million, while retail store sales accounted for $268.4 million.

Boot Barn Holdings also reported that second-quarter earnings surged 553.4% year-over-year (YOY) to $37.9 million, or $1.25 per share, compared to $5.8 million, or $0.20 per share, in the second quarter of fiscal year 2021. Analysts were expecting earnings of $0.93 per share, so BOOT posted a 34.4% earnings surprise.

Company management noted that it’s pleased with current sales momentum and its inventory position, and as a result, it anticipates a solid holiday season.

Since my recommendation in June, the stock has hit a series of new 52-week highs, including one today, while the broader market pulled back. The stock is sitting pretty with about a 66% return in my Breakthrough Stocks portfolio. I don’t expect the stock to slow down anytime soon, either. As I mentioned above, the stock holds a “B” for its Fundamental Grade, an “A” for its Quantitative Grade and an “A” for its Total Grade. So, it’s still a strong buy even after its recent run.

These are the types of stocks, and potential returns, my proprietary systems are always on the lookout for. And I believe I can make them work for you, too.

In fact, I just found another stock that is an urgent buy and I will be releasing its name next Tuesday, Nov. 23. I don’t want you to miss out, so I strongly recommend that you sign up now so you can get the full details. I’ll also give you instant access to my special report, 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. These are all excellent buys to get started with right now.

Click here to sign up today.


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:

Boot Barn Holdings, Inc. (BOOT)

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