In this article, we will take a detailed look at Louis Navellier’s 10 New Stock Picks.
Navellier & Associates is an independent money management firm founded in 1987 by renowned growth analyst Louis Navellier. Based in Reno, Nevada, the firm has more than thirty years of experience serving both individual and institutional clients through a disciplined, style-consistent investment approach. The firm’s mission is to maximize returns while managing excessive risk, offering customized portfolio strategies that incorporate a proprietary blend of quantitative and fundamental analysis. Navellier’s investment philosophy centers around identifying and exploiting inefficiencies in the market to uncover high-potential growth stocks. Unlike market indexes and firms that mimic market indexes, Navellier & Associates focuses on outperforming them, resulting in portfolios with low correlation to benchmarks, increased diversification, and reduced risk.
At the heart of Navellier’s investment process is a rigorous three-step, bottom-up stock selection methodology. The first step involves applying a proprietary quantitative screening process to evaluate market and individual stock statistics, specifically measuring reward through alpha and risk through standard deviation. This process narrows the investment options to stocks that rank in the upper percentiles for their risk/reward metrics. In the second step, fundamental analysis is used to identify stocks with exceptional profit margins, robust earnings growth, and forward-looking, reasonable price-to-earnings ratios. Finally, a proprietary optimization model allocates stocks within the portfolio to maximize alpha while minimizing volatility, ensuring that each portfolio is well-diversified across multiple sectors and industries. These strategies are particularly well-suited for long-term investors seeking steady returns in both bull and bear markets.
Louis Navellier himself brings over three decades of expertise to the firm. Since 1980, he has published quantitative research on growth stocks and remains a leading voice in the investment community. As the Founder, Chairman, Chief Investment Officer, and Chief Compliance Officer of Navellier & Associates, he continues to oversee the same portfolios he helped launch. His investment insights have earned him frequent appearances on CNBC, Fox Business News, and regular quotes in leading financial outlets such as Bloomberg and MarketWatch. He has been featured in major publications like Forbes, Fortune, Barron’s, and The Wall Street Journal, and profiled in books such as Secrets of the Investment All-Stars and Investing Under Fire. Today, the firm manages over $1 billion in private and institutional accounts and remains a sought-after resource for high-net-worth individuals and institutions alike.
Navellier & Associates offers tailored portfolio reviews, designed to help clients make sound financial decisions aligned with their preferences, individual goals, and risk tolerance. These reviews include a comprehensive portfolio analysis, risk assessment, and personalized investment recommendations. Portfolios managed by Navellier range from $100,000 to over $100 million, and all recommendations are made on a person-by-person basis. This level of customization underscores the firm’s belief that every investor is unique and deserves a strategy that reflects their personal financial objectives.
In addition to its financial expertise, the Navellier team is composed of passionate professionals who share common interests and life goals with their clients. From hiking and skiing to golfing and parenting, the firm’s staff brings a personal touch to its services, fostering genuine connections with investors. Navellier & Associates is deeply committed to providing not only top-tier financial management but also exceptional client service, innovative investment tools, and cutting-edge market research. With a homegrown foundation and a global outlook, Navellier continues to help clients achieve long-term financial security through disciplined, adaptive, and data-driven investment strategies.
As of its most recent 13F filing for the fourth quarter of 2024, Navellier & Associates reported managing approximately $834 million in securities. The firm’s top ten holdings account for 29.42% of this portfolio, reflecting its concentrated yet carefully optimized investment strategy grounded in systematic analysis and decades of market experience.
Louis Navellier of Navellier & Associates
Our Methodology
We searched through Navellier & Associates’ Q4 2024 13F filings to identify the new stock picks that the firm invested in during the fourth quarter of the year. From the resultant data, we ranked the equities based on the hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Louis Navellier’s 10 New Stock Picks
10. Flowserve Corporation (NYSE:FLS)
Number of Hedge Fund Holders as of Q4: 60
Navellier & Associates’ Equity Stake: $2.21 Million
Flowserve Corporation (NYSE:FLS) is an American multinational company and one of the largest global suppliers of industrial and environmental machinery such as pumps, valves, mechanical seals, automation systems, and related services. The company serves the power, oil and gas, chemicals, and other process industries, offering machinery, equipment, and solutions that support industrial operations. With a market capitalization of $8.35 billion, Flowserve boasts a strong market position and operational resilience. As one of Louis Navellier’s new stock picks, the hedge fund currently owns 38,441 shares in Flowserve Corporation (NYSE:FLS), with a stake of $2.21 million.
For its most recent quarterly financial report for the period ending December 2024, Flowserve Corporation (NYSE:FLS) reported earnings of $0.70 per share, falling short of the consensus estimate of $0.77. Although it missed expectations by 9%, the Q4 2024 EPS reflects a modest increase from the $0.68 per share reported in the same quarter a year earlier. Flowserve missed expectations in the prior quarter too, posting earnings of $0.62 per share against a projected $0.67.
Revenue for the quarter stood at $1.18 billion, missing analysts’ estimates of $1.21 billion by 2.5%, yet higher than the $1.17 billion reported in the same quarter of the previous year. Over the last four quarters, Flowserve Corporation (NYSE:FLS) has surpassed consensus revenue estimates three times, reflecting a consistent top-line performance amid market challenges. The company maintains a healthy current ratio of 1.99, highlighting its solid liquidity position and effective financial management, which continue to support its operational capabilities and shareholder returns.
Flowserve Corporation (NYSE:FLS) recently announced significant changes to its board of directors and bylaws. According to a recent SEC filing, the company’s Corporate Governance and Nominating Committee accepted the resignation of director Carlyn R. Taylor. Following Taylor’s resignation, the board of directors approved an amendment to the company’s bylaws, reducing the number of directors from eleven to ten. Additionally, Flowserve Corporation (NYSE:FLS) reinforced its commitment to returning value to shareholders by declaring a quarterly cash dividend of $0.21 per share, reflecting the company’s focus on delivering consistent value to its investors.
Artisan Small Cap Fund stated the following regarding Flowserve Corporation (NYSE:FLS) in its Q4 2024 investor letter:
“During the quarter, we initiated new GardenSM positions in VSE, Flowserve Corporation (NYSE:FLS) and Integer Holdings. Flowserve is a leading provider of fluid motion and control products and services. The company designs, manufactures and services a wide range of pumps, valves, seals, automation solutions and related systems for industries that require the management and transfer of fluids. As we highlight in the Stewardship Update section later in this letter, we believe the company is in a good position to benefit from rising natural gas production that is being driven by rising baseload power needs for data centers. And within the oil end market, a loosening of regulatory policies could increase production demands.”
9. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders as of Q4: 84
Navellier & Associates’ Equity Stake: $2.50 Million
Lam Research Corporation (NASDAQ:LRCX) is a prominent American supplier of wafer-fabrication equipment and related services for the semiconductor industry. The company specializes in front-end wafer processing, which involves the creation of the active components of semiconductor devices and their intricate wiring. Lam Research plays a critical role in the production of next-generation chips used across computing, communication, automotive, and consumer electronics markets due to its advanced technologies and services.
On January 29, 2025, Lam Research Corporation (NASDAQ:LRCX) released its financial results for the December 2024 quarter. The company reported revenue of $4.38 billion, a gross margin of $2.07 billion, operating expenses of $739 million, and operating income equivalent to 30.5% of revenue. The net income for the quarter was $1.19 billion, translating to $0.92 per diluted share. These results marked an improvement over the September 2024 quarter, during which Lam posted revenue of $4.17 billion, a gross margin of $2 billion, operating expenses of $738 million, operating income at 30.3% of revenue, and net income of $1.12 billion, or $0.86 per diluted share.
For the quarter ending in December 2024, Lam Research Corporation (NASDAQ:LRCX) reported a decrease in cash, cash equivalents, and restricted cash, which totaled $5.7 billion compared to $6.1 billion at the close of the September 2024 quarter. This decline was primarily attributed to cash used for capital return initiatives and capital expenditures, partially offset by cash flows from operating activities during the period.
Looking ahead, Lam Research Corporation (NASDAQ:LRCX) provided guidance for the March 2025 quarter, projecting revenue of approximately $4.65 billion, with a potential range of plus or minus $300 million. Additionally, Lam declared a quarterly dividend of $0.23 per share for the December 2024 quarter, reflecting its ongoing commitment to returning value to shareholders while continuing to invest in strategic growth initiatives.
Sands Capital Select Growth Fund stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its Q4 2024 investor letter:
“We exited Lam Research Corporation (NASDAQ:LRCX) on valuation concerns. The stock’s 12-month forward earnings multiple more than doubled from its 2022 low to the end of 2024’s third quarter. This valuation reflected lofty expectations for artificial intelligence (AI)-driven dynamic random access memory (DRAM) demand and NAND flash memory capital expenditure. While both DRAM and NAND stand to benefit from AI use cases, we believe this is likely to be overwhelmed by a muted recovery in consumer categories and potential deterioration in Chinese semiconductor capital expenditure. The latter concern became more acute following ASML Holding’s third-quarter 2024 earnings results, in which the business guided for its China revenue to fall by nearly 50 percent in 2025.
Looking past the valuation concerns, we maintain conviction in Lam’s long-term earnings power, given its leadership position in etch and deposition wafer fabrication equipment and the longer-term demand and technology trends. DRAM and NAND growth can inflect with improvements and scaling in AI (e.g., more memory use in inferencing, new packaging technology to improve input and output between memory and logic chips), and etch and deposition will become more important with new gate-all-around transistor architecture. We also expect the business to be a primary beneficiary of the next PC and smartphone replacement cycle, though we have little visibility into the cycle’s timing.”
8. Baker Hughes Company (NASDAQ:BKR)
Number of Hedge Fund Holders as of Q4: 58
Navellier & Associates’ Equity Stake: $3.02 Million
For more than a century, Baker Hughes Company (NASDAQ:BKR) has been at the forefront of energy innovation, leveraging the power of engineering, data, and science to transform the energy sector. As a leading energy technology company, Baker Hughes operates through two primary segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). These segments are strategically organized around the distinct markets and customer needs they serve, providing a diverse portfolio of equipment and service capabilities across the energy and industrial value chains.
The year 2024 marked a pivotal chapter for Baker Hughes Company (NASDAQ:BKR), delivering outstanding financial performance and achieving new quarterly and annual records in revenue, free cash flow, and key profitability measures. Chairman and Chief Executive Officer Lorenzo Simonelli emphasized that the company’s strategy to prioritize profitable growth and ongoing margin improvements is paying off. In his statement, Simonelli expressed optimism for 2025, anticipating continued strong EBITDA growth, particularly driven by the Industrial & Energy Technology segment.
For the fourth quarter of 2024, Baker Hughes Company (NASDAQ:BKR) reported revenue of $7.4 billion, reflecting an 8% increase year-over-year. The company achieved earnings per share (EPS) of $1.18 and adjusted EBITDA of $1.3 billion, up 20% compared to the same period in 2023. Operating activities generated $1.19 billion in cash, with free cash flow reaching $894 million. These strong quarterly results capped a successful full year, with total revenue climbing to $27.8 billion, a 9% year-over-year increase. The company recorded a net income attributable to shareholders of $2.98 billion and an EPS of $2.98. Adjusted EBITDA rose by 22% to $4.59 billion, while cash flows from operating activities totaled $3.33 billion and free cash flow amounted to $2.26 billion.
Demonstrating its commitment to shareholder returns, Baker Hughes Company (NASDAQ:BKR) returned $1.32 billion to shareholders in 2024, including $484 million through share repurchases. Reinforcing confidence in the company’s financial strength and future earnings growth, Simonelli highlighted the decision to increase the company’s quarterly dividend by 10%, raising it to $0.23 per share.
ClearBridge Value Strategy stated the following regarding Baker Hughes Company (NASDAQ:BKR) in its Q4 2024 investor letter:
“Our largest sell was Baker Hughes Company (NASDAQ:BKR), which we made to fund our new position in oilfield service provider peer Schlumberger. While we acknowledge that Baker Hughes has stronger near-term tailwinds, its strong performance has resulted in a historically wide valuation gap to Schlumberger. Schlumberger has similar exposure to the oil and gas industry, but also has an improving portfolio of assets and greater digital initiatives that we believe will lead it to outperform Baker Hughes over the long run.”
7. ADMA Biologics, Inc. (NASDAQ:ADMA)
Number of Hedge Fund Holders as of Q4: 37
Navellier & Associates’ Equity Stake: $3.06 Million
ADMA Biologics, Inc. (NASDAQ:ADMA) is a fully integrated commercial biopharmaceutical company specializing in the development, manufacturing, and marketing of specialty biologics aimed at treating immunodeficient patients and others at heightened risk for certain infectious diseases. The company’s portfolio and operations are focused on providing essential therapies to vulnerable patient populations who require immune support to combat serious infections.
In the fourth quarter of 2024, ADMA Biologics, Inc. (NASDAQ:ADMA) reported exceptionally strong financial results, significantly outperforming market expectations. The company achieved earnings per share (EPS) of $0.46, as compared to the forecasted $0.15, exceeding expectations by over 300%. Revenue for the quarter also surpassed projections, totaling $117.5 million compared to the anticipated $113.4 million. This impressive performance represented a 59% year-over-year increase in quarterly revenue, reflecting the company’s accelerating growth trajectory.
Over the full year of 2024, ADMA Biologics, Inc. (NASDAQ:ADMA) continued this momentum, reporting total revenue of $426.5 million, which demonstrated a substantial 65% increase from the prior year. The company’s financial turnaround was particularly noteworthy, as it recorded a net income of $197.7 million for the year, as opposed to a net loss of $28.2 million in 2023. This shift from losses to profitability underscores the success of ADMA’s strategic initiatives and expanding market demand for its specialized products.
ADMA Biologics, Inc. (NASDAQ:ADMA) is one of Louis Navellier’s new stock picks. During the December quarter in 2024, Navellier & Associates invested over $3 million in the company, purchasing 178,745 shares. Hedge fund sentiment also increased; according to Insider Monkey’s database, 37 hedge funds held shares in the company by the end of Q4 with a combined stake of $436.9 million, significantly up from 25 funds in Q3.
Looking ahead, ADMA Biologics, Inc. (NASDAQ:ADMA) has established ambitious financial goals for the coming years. For 2025, the company aims to achieve revenue exceeding $490 million and an adjusted EBITDA of more than $225 million, continuing its aggressive growth strategy. Furthermore, ADMA projects even greater expansion in 2026, targeting revenue in excess of $650 million, reflecting confidence in its business model, market opportunities, and operational execution.
6. KBR, Inc. (NYSE:KBR)
Number of Hedge Fund Holders as of Q4: 56
Navellier & Associates’ Equity Stake: $3.20 Million
Formerly known as Kellogg Brown & Root, KBR, Inc. (NYSE:KBR) operates across the fields of science, technology, and engineering. Founded in 1901 by Morris Woodruff Kellogg as The M.W. Kellogg Company in New York City, KBR has evolved into a major player in a wide array of industries, including aerospace, defense, industrial, and intelligence sectors. The company is currently headquartered in the KBR Tower in Houston, Texas, and continues to build on its long history of innovation and technical expertise.
In the fourth quarter of 2024, KBR, Inc. (NYSE:KBR) delivered strong financial results, surpassing analysts’ expectations on both earnings and revenue fronts. The company reported earnings per share (EPS) of $0.91, outperforming the market forecast of $0.82. Revenues for the quarter totaled $2.12 billion, exceeding the anticipated $2.01 billion. This performance reflects KBR’s successful execution of its strategic initiatives and operational discipline, solidifying its position in key markets.
Looking ahead, KBR, Inc. (NYSE:KBR) has issued an optimistic outlook for 2025, forecasting continued growth driven by its focus on advanced technology and innovation. The company projects revenue between $8.7 billion and $9.1 billion for the year, representing approximately 15% growth at the midpoint. Additionally, KBR expects adjusted EBITDA to range from $950 million to $990 million and anticipates adjusted EPS between $3.71 and $3.95. These projections highlight KBR’s commitment to expanding its market presence and capitalizing on emerging opportunities in its core industries, positioning the company for sustained, long-term growth.
Cove Street Capital Small Cap Value Fund stated the following regarding KBR, Inc. (NYSE:KBR) in its Q2 2024 investor letter:
“On the plus side, KBR, Inc. (NYSE:KBR) has been a strong performer so far YTD on the back of an investor day in the second quarter that highlighted the success of the last four-year plan (2020-2023) before laying out ambitious but credible targets for the next 4 years (2024- 2027). Since 2020, KBR has pivoted their commercial business away from high-risk EPC projects to a more differentiated IP-first consulting approach that now sees 20% EBIT margins and contributes 40% of their overall profitability. KBR has cleaned up their balance sheet by settling convertible notes and warrants and now sits at a healthy 2x net leverage. With the upcoming ramp of a $20B government services contract with the U.S. army, the company is well positioned to generate cash and return value to shareholders.”
In early 2025, KBR, Inc. (NYSE:KBR) secured a multi-year contract with BP International Limited to provide engineering, procurement, and construction management (EPCM) services for onshore, offshore, greenfield, brownfield, and new energy projects globally. The agreement involves collaboration across multiple international locations, reinforcing KBR’s reputation for delivering complex projects worldwide. This new development reflects KBR’s growing focus on space, defense, national security, and commercial markets, with expected revenue growth of 11% to 15% CAGR through 2027.
5. AECOM (NYSE:ACM)
Number of Hedge Fund Holders as of Q4: 31
Navellier & Associates’ Equity Stake: $3.96 Million
AECOM (NYSE:ACM) is an American multinational infrastructure consulting firm headquartered in Dallas, Texas. The company offers a comprehensive range of services such as Archaeology, Architecture & Design, Urban Planning, Landscape Architecture, Asset Management, Construction, Cost Management, Decommissioning & Closure, Economics, Engineering, Environmental Services, International Development, and IT & Cyber Security.
AECOM (NYSE:ACM) recently reported strong financial results, with fourth quarter revenue rising 7% to $4.1 billion, operating income increasing 194% to $236 million, and net income surging 396% to $168 million. Diluted earnings per share (EPS) for the quarter jumped 421% to $1.25, surpassing estimates of $1.10.
For the full fiscal year, AECOM achieved a 12% increase in revenue to $16.1 billion, a 155% increase in operating income to $827 million, a 343% increase in net income to $506 million, and a 358% rise in diluted EPS to $3.71, exceeding its previously-raised guidance and setting new company records.
Looking ahead, AECOM (NYSE:ACM) anticipates delivering record net service revenue, profitability, and margins in fiscal 2025, along with continued strong cash flow conversion. The company expects its financial performance to follow a typical seasonal pattern, with growth accelerating as the year progresses. Full-year EBITDA is projected to range between $1,170 million and $1,210 million, representing a 9% increase at the midpoint over fiscal 2024. The expected EBITDA margin is 16.3%, a 30 basis point improvement from the prior year. Additionally, AECOM forecasts EPS between $5.00 and $5.20 for the full year, reflecting a 13% increase at the midpoint compared to fiscal 2024, highlighting the firm’s ongoing momentum and confidence in achieving further financial and operational milestones.
Investor confidence in AECOM (NYSE:ACM) grows steadily, as reflected by a notable increase in hedge fund participation. 31 hedge funds out of 1,009 in Insider Monkey’s database held stakes in the company, with a combined stake of nearly $486 million by the end of Q4 2024, as opposed to 24 hedge funds at the end of Q3 the same year, signaling growing confidence in the trusted global infrastructure leader.
4. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders as of Q4: 65
Navellier & Associates’ Equity Stake: $4.75 Million
Trane Technologies plc (NYSE:TT) is an American-Irish domiciled company specializing in heating, ventilation, air conditioning (HVAC), and refrigeration systems. The company’s corporate history spans more than 150 years and has been shaped by a series of mergers and strategic spin-offs. In 2008, HVAC manufacturer Trane was acquired by Ingersoll Rand, a U.S.-based industrial tools company. In 2020, following the spin-off of its tools business as a standalone Ingersoll Rand, the remaining business was rebranded as Trane Technologies, focusing entirely on climate control and energy efficiency solutions.
For the quarter ended December 2024, Trane Technologies plc (NYSE:TT) outperformed market expectations, posting earnings per share (EPS) of $2.61, a 3.6% surprise above the projected $2.52. Revenue of $4.87 billion also exceeded forecast by $100 million, continuing a reliable trend of earnings beats that underscore the company’s strong market position and operational discipline. Building on this momentum, Trane Technologies projects organic revenue growth of 7–8% for 2025 and expects adjusted EPS to fall between $12.70 and $12.90, representing a 13–15% increase. The company is also targeting over 100% free cash flow conversion for the year. Residential market growth is anticipated to reach mid-single digits, while transport markets are expected to remain stable.
Despite its positive outlook, Trane Technologies plc (NYSE:TT) faces considerable challenges in the near future. Potential tariff changes could affect the company’s cost structures and profitability, while market saturation in specific verticals may limit future growth opportunities. Supply chain disruptions also remain a possible obstacle to meeting growing demand, and broader macroeconomic pressures such as inflation could impact consumer spending behavior. Additionally, evolving regulatory requirements related to environmental policies may affect operational strategies and cost dynamics in the years ahead.
Navellier & Associates invested over $4.75 million to purchase 12,867 shares of Trane Technologies plc (NYSE:TT) in the December quarter, effectively placing it in the list of Louis Navellier’s new stock picks. For the same quarter, 65 hedge funds out of the 1,009 firms tracked by Insider Monkey reported having stakes in the company, with a combined value of nearly $2.88 billion.
Aristotle Atlantic Focus Growth Strategy stated the following regarding Trane Technologies plc (NYSE:TT) in its Q4 2024 investor letter:
“Trane Technologies plc (NYSE:TT) detracted from performance in the fourth quarter of 2024. The company reported better than expected revenue and earnings growth at the end of October. The stock declined in December despite two investor conferences early in the month where the company reiterated expectations that current strong trends in commercial HVAC will continue into 2025, the service business is continuing to experience low double-digit growth, and the residential business is expected to improve from a lull in 2024. Higher interest rates have been a drag on industrial stock performance generally in December. Strength in the US dollar in 2025 will impact large cap companies like Trane, which have international exposure.”
3. ExlService Holdings, Inc. (NASDAQ:EXLS)
Number of Hedge Fund Holders as of Q4: 27
Navellier & Associates’ Equity Stake: $5.02 Million
ExlService Holdings, Inc. (NASDAQ:EXLS) is a global analytics and digital solutions company that provides services to a wide range of industries, including insurance, healthcare, banking and financial services, media, and retail. The company reported strong financial results for the fourth quarter of 2024, with revenue reaching $481.4 million, representing a 16.3% increase compared to the same period in the previous year. Earnings per share (EPS) rose to $0.31 from $0.24 in Q4 2023.
For the full year 2024, ExlService Holdings, Inc. (NASDAQ:EXLS) delivered revenue of $1.84 billion, reflecting a 12.7% increase year-over-year, while EPS for the year climbed to $1.21, up from $1.10 in 2023. The company’s business segments showed strong performance, with the Insurance segment generating $162.0 million in Q4 2024, an increase from $139.1 million in the same quarter the year before. The Analytics segment also posted notable growth, with revenue rising to $207.7 million from $182.0 million in Q4 2023.
In addition to its financial achievements, ExlService Holdings, Inc. (NASDAQ:EXLS) made significant operational advancements. The company launched EXLerate.AI, an artificial intelligence platform designed to improve operational efficiency and scalability across its business processes. EXL also expanded its client base, securing 17 new clients in the fourth quarter alone, bringing the total number of new clients for 2024 to 69.
Looking ahead, ExlService Holdings, Inc. (NASDAQ:EXLS) has issued optimistic guidance for 2025, projecting revenue between $2.025 billion and $2.060 billion, reflecting growth of 10% to 12% on a reported basis and 11% to 13% on a constant currency basis. The company also expects adjusted diluted EPS to range from $1.83 to $1.89, indicating an increase of 11% to 14% from 2024.
ExlService Holdings, Inc. (NASDAQ:EXLS)’s strong financial performance and growth potential have attracted the attention of notable investors, effectively placing it in the list of Louis Navellier’s new stock picks. In the December 2024 quarter, Navellier & Associates invested over $5 million in the company, acquiring 113,037 shares, signaling confidence in EXL’s long-term prospects.
Polen Global SMID Company Growth stated the following regarding ExlService Holdings, Inc. (NASDAQ:EXLS) in its Q3 2024 investor letter:
“We initiated a position in ExlService Holdings, Inc. (NASDAQ:EXLS), a business process outsourcing company that we think has become a leader in data services over time. Exlservice is a diversified business with 95% customer renewal rates and four-to-five-year contracts. While the work is not glamorous, the company is experiencing strong demand from customers attempting to determine how to best clean up and structure data to participate in the next stages of digital transformation, including generative Al (“GenAl”). We expect this strong customer demand to continue. Many companies are faced with significant basic blocking to benefit from GenAl successfully. Simultaneously, the company invests heavily in developing GenAl-enabled tools and recently announced partnerships with Microsoft and AWS (Amazon Web Services is’ Amazon’s comprehensive cloud computing platform) to co develop Al solutions and accelerate go-to-market plans.”
2. United Airlines Holdings, Inc. (NASDAQ:UAL)
Number of Hedge Fund Holders as of Q4: 86
Navellier & Associates’ Equity Stake: $5.77 Million
United Airlines Holdings, Inc. (NASDAQ:UAL), a major U.S. airline headquartered in Chicago, Illinois, operates one of the most extensive domestic and international route networks in the world, covering the United States and six continents. As a founding member of the Star Alliance and with regional service provided by independent carriers under the United Express brand, the airline connects more destinations globally than any other. United’s history dates back to the late 1920s, beginning with the establishment of Varney Air Lines in 1926 by Walter Varney, who would later also help found the predecessor to Continental Airlines. Over the decades, United has consistently ranked among the largest airlines globally, largely through strategic mergers and acquisitions that expanded its network and market presence.
In 2024, United Airlines Holdings, Inc. (NASDAQ:UAL), which operates United Airlines, delivered a strong financial performance, surpassing market expectations and demonstrating operational resilience. For the fourth quarter, the airline posted earnings per share (EPS) of $3.26, exceeding the forecasted $2.93 by 11.3%, and achieved revenue of $14.7 billion, outperforming estimates of $14.34 billion. This solid financial standing was reinforced by operational improvements, resulting in a pre-tax margin of 9.7% in Q4, an increase of 3.5 percentage points year-over-year.
As one of Louis Navellier’s new stock picks, the hedge fund currently owns 59,446 shares in United Airlines Holdings, Inc. (NASDAQ:UAL), with a stake of $5.77 million.
Looking ahead to 2025, United Airlines Holdings, Inc. (NASDAQ:UAL) projects EPS growth of approximately 18% at the midpoint, with an expected range between $11.50 and $13.50. The airline plans to expand its fleet with the delivery of 71 new narrowbody and 10 widebody aircraft over the year and expects to have 70% of its aircraft interiors upgraded by the end of 2025. These strategic investments aim to drive greater efficiency, customer satisfaction, and sustained profitability.
Patient Capital Management stated the following regarding United Airlines Holdings, Inc. (NASDAQ:UAL) in its Q4 2024 investor letter:
“United Airlines Holdings, Inc. (NASDAQ:UAL) had a strong fourth quarter, gaining 70.2% in the period. The company benefitted from continued strong demand that surprised the market as well as the initiation of a buyback program, the first since COVID. There continues to be strong travel demand from both retail and business travelers. According to the International Air Transport Association (IATA), global air passenger travel is still below the pre-COVID implied trend path despite reaching a new all-time high this year. United’s focus on the customer over the last few years has led to strong improvement in net promoter scores (NPS) which should continue to flow through the model via better TRASM (total revenue per available seat mile) and higher cash flows and earnings. As of today, United alone accounts for ~30% of the overall industry’s profits. We expect this market share to grow and be defensible as we transition to an environment where customer service becomes the differentiating factor, and scale provides unparalleled ability to reinvest in the customer experience.”
1. Arista Networks Inc (NYSE:ANET)
Number of Hedge Fund Holders as of Q4: 78
Navellier & Associates’ Equity Stake: $6.75 Million
Arista Networks Inc (NYSE:ANET) is an American computer networking company headquartered in Santa Clara, California, specializing in the design and sale of multilayer network switches that support software-defined networking. Its solutions serve large data centers, cloud computing environments, high-performance computing, and high-frequency trading sectors. As an industry leader in data-driven, client-to-cloud networking, Arista provides infrastructure for AI-driven applications, data centers, campus networks, and routing environments.
In its financial report for the fourth quarter and full year ended December 31, 2024, announced on February 18, 2025, Arista Networks Inc (NYSE:ANET) showcased impressive results that reflected sustained business momentum. Chairperson and CEO Jayshree Ullal expressed pride in the company’s performance, stating that 2024 was a remarkable year of momentum resulting in a record $7 billion in revenue. He expressed his pride at the team’s execution in delivering what he described as the “ultimate combination of superior growth and profitability”.
For the fourth quarter of 2024, Arista Networks Inc (NYSE:ANET) reported revenue of $1.93 billion, marking a 6.6% increase from the third quarter of 2024 and a 25.3% rise compared to the same period in 2023. The company achieved a gross margin of 64.2%, slightly lower than the 64.9% margin recorded in the fourth quarter of 2023. Net income for the quarter reached $801 million, with diluted earnings per share (EPS) of $0.62.
For the full year 2024, Arista Networks Inc (NYSE:ANET) delivered record revenue of $7 billion, a 19.5% increase over fiscal year 2023. The company’s gross margin improved to 64.1%, up from 61.9% the previous year. Net income for the year surged to $2.85 billion, with a diluted EPS of $2.23, compared to $2.09 billion and $1.65 per diluted share in 2023. These results reflect Arista’s continued ability to balance rapid growth with strong profitability, driven by its leadership in AI networking solutions and next-generation cloud infrastructure.
Artisan Global Opportunities Fund stated the following regarding Arista Networks Inc (NYSE:ANET) in its Q4 2024 investor letter:
“Along with NovoNordisk, a notable trim in the quarter included Arista Networks Inc (NYSE:ANET). Arista Networks is the market leader in cloud networking equipment used in data centers. Shares have strongly outperformed since the beginning of 2023 as its ethernet options capture market share in AI cloud environments. Many of the largest buyers in this space are focused on utilizing Arista’s networking technology, given meaningful increases in GPU utilization rates versus InfiniBand, the out-of-the-box solution from NVIDIA. We believe Arista remains exceptionally well positioned. However, we have been trimming the position due to our valuation discipline.”
Overall, ANET ranks first among Louis Navellier’s 10 new stock picks. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ANET but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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