Louis Navellier’s Top 10 Stock Picks for Q4 2022
In this article, we discuss the top 10 stock picks from Louis Navellier. If you want to see more stocks in this selection, check out Louis Navellier’s Top 5 Stock Picks for Q4 2022. Louis Navellier, the author of a BusinessWeek best-seller, “The Little Book That Makes You Rich”, is the founder and chairman of […]
Louis Navellier’s Top 10 Stock Picks for Q4 2022
In this article, we discuss the top 10 stock picks from Louis Navellier. If you want to see more stocks in this selection, check out Louis Navellier's Top 5 Stock Picks for Q4 2022.
Louis Navellier, the author of a BusinessWeek best-seller, "The Little Book That Makes You Rich", is the founder and chairman of Reno, Nevada-based money management firm Navellier & Associates. A frequent contributor to business shows on CNBC, Fox News, and Bloomberg, Navellier publishes several newsletters annually which share his investment philosophies and insights as they particularly relate to growth investing. Having received a B.S. in business administration from California State University in 1978, followed by an M.B.A. in finance in 1979, Louis Navellier has decades of experience under his belt, translating what had been purely academic techniques into real market applications.
His hedge fund, Navellier & Associates, employs a three-step, bottom-up stock selection process focusing on quantitative analysis, fundamental analysis, and optimization of the securities selected for the portfolio.
During a live presentation on the MoneyShow earlier this year, Louis Navellier shared his insights into the market, alongside speculating the what the future may hold. Here is what he said:
The US remains an oasis despite the chaos in the world. Americans are naturally optimistic, and our consumer-driven society so far has skirted a recession. However, the Fed is trying to re-establish its credibility by raising key interest rates and threatening to curtail existing economic growth. Engineering a "soft landing" has proven to be next to impossible in the past. I expect inflation to "crack" in September and decelerate to less than a 4% annual pace. The Fed has traditionally overshot when raising key interest rates, so it is imperative that after pricking the housing bubble that the Fed hits the "pause button" to ensure that the US economy does not slip into a recession. I will show investors my best recession-resistant stocks that I expect to prosper regardless of whether the US economy slips into a recession.
Having purchased 42 new stocks, and sold out of 55 positions, Louis & Navellier's most notable holdings in Q3 2022 include NVIDIA Corporation (NASDAQ:NVDA), Costco Wholesale Corporation (NASDAQ:COST), CF Industries Holdings, Inc. (NYSE:CF), and ConocoPhillips (NYSE:COP), among others listed below.
Louis Navellier of Navellier & Associates
Our Methodology
The following data is gathered from Navellier & Associates’ latest 13F filing with the SEC for the third quarter of 2022. The stocks within this list are some of Louis Navellier's most notable stock picks entering the fourth quarter, and are expected to remain within his portfolio through the end of Q4 due to their strong growth catalysts.
Louis Navellier's Top 10 Stock Picks for Q4 2022
10. Valero Energy Corporation (NYSE:VLO)
Navellier & Associates’ Stake Value: $6.17 million
Percentage of Navellier & Associates’ 13F Portfolio: 1.37%
Number of Hedge Fund Holders: 47
Valero Energy Corporation (NYSE:VLO) is a Fortune 500 international manufacturer and marketer of transportation fuels, other petrochemical products, and power. Louis Navellier's Navellier & Associates reported holding a $6.17 million stake in the energy company at the close of Q3 2022.
On October 26, Wells Fargo analyst Roger Read raised the price target on Valero Energy Corporation (NYSE:VLO) to $137 from $131 and maintained an Overweight rating on the shares following quarterly results. Read maintains a positive view of Valero, stating that it remains well positioned to generate solid CFFO and return excess cash to shareholders into 2023.
Insider Monkey’s Q3 2022 survey of 920 hedge funds outlined that 47 had held a stake in Valero Energy Corporation (NYSE:VLO). Out of these, Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital is Valero Energy Corporation (NYSE:VLO)’s largest investor. It owns 3.13 million shares that are worth $334.59 million.
Alongside NVIDIA Corporation (NASDAQ:NVDA), Costco Wholesale Corporation (NASDAQ:COST), CF Industries Holdings, Inc. (NYSE:CF), and ConocoPhillips (NYSE:COP), Valero Energy Corporation (NYSE:VLO) ranks among Louis Navellier's favorite stocks.
9. Enphase Energy, Inc. (NASDAQ:ENPH)
Navellier & Associates’ Stake Value: $6.24 million
Percentage of Navellier & Associates’ 13F Portfolio: 1.38%
Number of Hedge Fund Holders: 59
Enphase Energy, Inc. (NASDAQ:ENPH) is an American energy technology company headquartered in Fremont, California that develops and manufactures solar micro-inverters, battery energy storage, and EV charging stations primarily for residential customers. Navellier & Associates reported holding 22,491 shares of the company at the end of the third quarter, worth $6.24 million.
Deutsche Bank analyst Corinne Blanchard initiated coverage of Enphase Energy, Inc. (NASDAQ:ENPH) with a Buy rating and $330 price target on November 14. The analyst's bullish outlook on the solar group is "underpinned by considerable growth opportunities" for the U.S. residential market and the "most powerful and positive regulatory environment the industry has ever seen." According to Blanchard, Enphase's manufacturing capacity should double up in a two-phased approach.
Enphase Energy, Inc. (NASDAQ:ENPH)’s shares are up by 69% year to date, and 59 out of the 920 hedge funds tracked by Insider Monkey during this year’s third quarter reported buying its shares. John Overdeck and David Siegel’s Two Sigma Advisors is Enphase Energy, Inc. (NASDAQ:ENPH)’s largest investor. It owns 1.4 million shares that are worth $393 million.
8. Coterra Energy Inc. (NYSE:CTRA)
Navellier & Associates’ Stake Value: $6.32 million
Percentage of Navellier & Associates’ 13F Portfolio: 1.4%
Number of Hedge Fund Holders: 39
Coterra Energy Inc. (NYSE:CTRA) is a diversified energy company engaged in hydrocarbon exploration organized in Delaware, with additional operations in the Permian Basin, Marcellus Shale, and the Anadarko Basin. Louis Navellier holds 13,451 shares of the company as of Q3 2022, worth approximately $6.32 million.
Stifel analyst Derrick Whitfield resumed coverage of Coterra Energy Inc. (NYSE:CTRA) with a Buy rating and $40 price target. The analyst states that he is constructive on management and the company's portfolio of resource projects, which he notes were organically generated. According to Whitfield, Coterra offers investors a "compelling" combination of quality (asset and management) and value.
By the end of this year’s September quarter, 39 out of the 920 hedge funds polled by Insider Monkey had bought Coterra Energy Inc. (NYSE:CTRA)’s shares. Ric Dillon’s Diamond Hill Capital is Coterra Energy Inc. (NYSE:CTRA)’s largest shareholder through a $117 million stake that comes via 4.5 million shares.
7. Costco Wholesale Corporation (NASDAQ:COST)
Navellier & Associates’ Stake Value: $6.35 million
Percentage of Navellier & Associates’ 13F Portfolio: 1.41%
Number of Hedge Fund Holders: 69
Costco Wholesale Corporation (NASDAQ:COST) is an American multinational corporation which operates a chain of membership-only big-box retail stores. The company leads as one of the biggest retailers in the world across several selected categories. Louis Navellier's hedge fund holds $6.35 million worth of shares in the company.
After having hosted meetings at Costco HQ with CFO Richard Galanti and other members of the company's management team, Morgan Stanley analyst Simeon Gutman stated that 2023 could be a "special" year for Costco Wholesale Corporation (NASDAQ:COST) on October 28 and kept an Overweight rating and $525 price target on the shares.
On November 22, BofA analysts added Costco Wholesale Corporation (NASDAQ:COST) to the firm's "US 1 List," which represents a collection of the best investment ideas that are drawn from the universe of Buy-rated, U.S.-listed stocks covered by BofA Global Research fundamental equity research analysts.
Costco Wholesale Corporation (NASDAQ:COST) was a part of 69 hedge fund portfolios in Q3 2022, compared with 64 in the previous quarter. The stakes owned by these hedge funds have a total value of over $4.42 billion.
Cooper Investors shared its outlook on Costco Wholesale Corporation (NASDAQ:COST) in its Q3 2022 investor letter. Here’s what the firm said:
“The US economy continues to run hot – the labour market is extremely tight and a number of executives we spoke to described their challenges in retaining staff and preventing competitors from poaching talent. Industrial companies in particular continue to see record backlogs, with the easing of logistics and supply chain constraints only just starting to have an impact on deliveries and lead times.
In terms of inflationary pressures, the vast majority of our holdings have been able to leverage strong market positions and stakeholder relationships to push pricing through in 2022 such that minimal impact to earnings has occurred. Clearly this is not a lever than can be pulled indefinitely but the more experienced management teams have kept some of their powder dry. Our meeting with management at Costco in Seattle was memorable for several reasons but one was their latent ability to increase member pricing which they have not done in over 5 years (and thus likely to do in 2023)…
…To conclude we’ll return to our meeting with Costco mentioned earlier. The business quality is no secret after decades of incredible execution, but the meeting gave us renewed conviction around Value Latencies in terms of the runway for growth, the focus on enhancing customer value, Costco’s vast buying power (it purchases 30% of the world’s jumbo cashews as one example) and management’s feral focus on the business model and cost discipline.”
6. Quanta Services, Inc. (NYSE:PWR)
Navellier & Associates’ Stake Value: $10 million
Percentage of Navellier & Associates’ 13F Portfolio: 2.23%
Number of Hedge Fund Holders: 47
Quanta Services, Inc. (NYSE:PWR) is an American contracting services corporation that provides infrastructure services for electric power, pipeline, industrial and communications industries. Louis Navellier's hedge fund owned a $10 million stake in Quanta Services, Inc. (NYSE:PWR) as part of its portfolio for the third quarter of this year. The stake came through the fund owning 78,928 shares of the company, and it represented 2.23% of its investment portfolio.
On November 8, KeyBanc analyst Sean Eastman raised the price target on Quanta Services, Inc. (NYSE:PWR) to $174 from $156 alongside an Overweight rating on the company's shares based on what he calls greater confidence in the multiyear, mid-teens EPS growth algorithm.
Insider Monkey’s Q3 2022 920 hedge fund survey outlined that 47 funds had invested in the firm, a jump from just 34 in the previous quarter. William Harnisch's Peconic Partners LLC is the company's largest shareholder for the quarter, with approximately 5.53 million shares worth $1.3 billion.
Similar to NVIDIA Corporation (NASDAQ:NVDA), Costco Wholesale Corporation (NASDAQ:COST), CF Industries Holdings, Inc. (NYSE:CF), and ConocoPhillips (NYSE:COP), Quanta Services, Inc. (NYSE:PWR) is one of Louis Navellier's top stock picks.
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Disclosure: None. Louis Navellier's Top 10 Stock Picks for Q4 2022 is originally published on Insider Monkey.