In this article, we will take a look at Louis Navellier’s top 10 stock picks heading into 2025.
Louis Navellier, Chairman and Founder of Navellier & Associates, is a renowned American investor who is celebrated for his skill in navigating the stock market and delivering impressive profits. Leading a firm dedicated to growth investments, Navellier’s strategy is reflected in his high-performing portfolio. His journey began in a college mainframe computer lab in the 1970s. While studying at the now Cal State East Bay, Navellier set out to validate the prevailing belief that beating the market was impossible. His original aim was to create an index product before index investing became mainstream, attempting to replicate the S&P 500. Ironically, his project failed by succeeding. Rather than simply matching the market, his model consistently outperformed it, uncovering inefficiencies that became the cornerstone of his investment philosophy. In 1987, Navellier would go on to establish Navellier & Associates, a fund dedicated to providing customized portfolio strategies aimed at maximizing returns while effectively managing risk for individual investors.
With decades of expertise in translating academic theories into real-world market strategies, Louis Navellier champions a disciplined approach to quantitative analysis for identifying market-beating stocks. His methodology follows a meticulous three-step process: quantitative analysis to pinpoint high-potential opportunities, fundamental analysis to evaluate each candidate’s financial health and growth prospects, and portfolio optimization to fine-tune the selection for maximum performance. Throughout his career, Navellier has identified numerous “thousand-percent winners,” from Conair’s dominance in the hair dryer market during the 1980s to NVIDIA’s leadership in AI chips today. His methodology emphasizes discovering well-managed companies that lead their industries, particularly those with expanding operating margins and steady earnings growth.
Navellier’s U.S. Outlook
In a Market 360 article, Louis Navellier offered insights into the recent presidential election and its potential market implications under a Trump 2.0 administration. He highlighted the critical role manufacturing played in the 2024 election outcome by pointing to the Institute of Supply Management’s (ISM) report, which revealed a decline in the manufacturing index to 46.5 in October from 47.2 in September, signaling contraction (any reading below 50). The details paint an even grimmer picture: The Bureau of Labor Statistics’ payroll report has revised August and September job figures downward by a combined 112,000. As such, manufacturing took a significant hit, with 46,000 jobs lost, partly due to Boeing’s ongoing challenges. Here’s what Navellier had to say about the report:
“All in all, this payroll report was a statistical mess and will likely need to be revised when we have more information. But it also drove Treasury yields lower and increased pressure on the Federal Reserve to cut key interest rates, since the Fed is now more worried about the job market than inflation.”
According to Navellier, the new administration is expected to drive growth in the manufacturing sector through a combination of measures: implementing tariffs to counter unfair overseas competition, encouraging the Federal Reserve to maintain lower interest rates, and leveraging cheaper energy prices that position the U.S. favorably compared to Europe and Japan. He noted that if these strategies succeed, the U.S. could see a manufacturing boom.
On the other hand, Navellier has been one of the biggest heralds of AI and its implications. Currently, many investors remain heavily focused on the “first generation” of AI stocks and while Wall Street’s AI darling is likely to continue generating returns, Navellier states that it has become yesterday’s story. According to the investor, the real opportunity lies in the “second generation” of AI stocks; companies poised to harness generative AI to build profitable enterprises and revolutionize existing industries. This next wave will usher in transformational change of a kind that happens only once every 25 years. The companies that adapt to this second wave of AI will soar, delivering years of outperformance. Those that fail to embrace this shift risk falling behind—or even disappearing altogether. Conversely, Navellier believes that AI will also dismantle outdated industries and businesses. The “Real AI Boom”, as he calls it, will mint new millionaires—and even billionaires—while driving hundreds, if not thousands, of stocks worldwide to collapse.
Louis Navellier of Navellier & Associates
Our Methodology
For this analysis, we examined Navellier & Associates’ stock portfolio from the third quarter of 2024. The stocks are ranked based on the firm’s stake value in each holding.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Apple Inc. (NASDAQ:AAPL)
Navellier & Associates’ Stake Value: $13.42 million
Number of Hedge Funds Holders: 158
Apple Inc. (NASDAQ:AAPL), a global leader in consumer electronics, software, and services, is best known for its flagship products like the iPhone, Mac, and Apple Watch. The company is also making significant advances in artificial intelligence (AI) and augmented reality (AR), bolstering its position for growth in emerging markets.
According to Bernstein, Apple Inc. (NASDAQ:AAPL) shares could reach $290 in their bull case scenario. They firm views Apple Inc. (NASDAQ:AAPL) as a “quality compounder,” citing mid-single-digit revenue growth, improving margins, disciplined capital returns, and double-digit earnings per share growth. It also underscored Apple’s unique market position, with over 2.3 billion devices in use and nearly one billion “demographically attractive” users. While Bernstein predicts a potentially underwhelming iPhone 16 cycle, the firm recommends buying Apple Inc. (NASDAQ:AAPL) shares if they dip to $200 or below, especially during the February to April timeframe, capitalizing on the stock’s seasonal trading patterns.
Apple’s fiscal Q4 2024 results exceeded Wall Street expectations for revenue and earnings per share, despite a dip in net income due to a one-time tax charge related to a European tax decision. Adjusted earnings per share rose 12% year-over-year, while quarterly revenue increased 6% to $391.04 billion for the fiscal year. Apple’s cash reserves have grown to $156.65 billion.
In addition, iPhone revenue climbed 6% in the quarter, marking the first glimpse of the iPhone 16’s market performance. CEO Tim Cook reported that iPhone 16 sales outperformed both the iPhone 14 and 15 during comparable periods. Additionally, Cook highlighted the rollout of Apple Intelligence, an AI system for iPhones and Macs, as part of the iOS 18.1 update, further emphasizing the company’s commitment to innovation.
9. Toll Brothers, Inc. (NYSE:TOL)
Navellier & Associates’ Stake Value: $13.73 million
Number of Hedge Funds Holders: 54
Toll Brothers, Inc. (NYSE:TOL) specializes in designing, building, marketing, and financing a variety of detached and attached homes across the U.S. The company stands out from competitors with its focus on prestigious locations, distinctive architectural designs, unmatched customization options, and exceptional customer service.
In Q3, the company delivered record-breaking third-quarter home sale revenues of $2.72 billion, driven by efficient operations and strong demand for new homes. Moreover, Toll Brothers, Inc. (NYSE:TOL) sold 2,814 homes at an average price of $968,000 and signed 2,490 net contracts totaling $2.4 billion, reflecting an 11% year-over-year increase in both units and dollar value.
In addition, Toll Brothers, Inc. (NYSE:TOL) raised its full-year adjusted gross margin guidance to 28.3% (up from 28.0%) and expanded its stock buyback program from $500 million to $600 million. Following these robust results, Keefe, Bruyette & Woods maintained an Outperform rating on the stock, highlighting its favorable valuation at 1.7 times the estimated 2025 book value. The firm also raised forward estimates by 6.5%, driven by better-than-expected deliveries, gross margins, and SG&A efficiency. The firm projects a 21% growth in book value by the end of 2025, with a return on equity (ROE) forecasted between 17% and 21%.
8. Microsoft Corporation (NASDAQ:MSFT)
Navellier & Associates’ Stake Value: $13.8 million
Number of Hedge Funds Holders: 279
Microsoft Corporation (NASDAQ:MSFT), a global leader in technology, focuses on productivity software, cloud services, and personal computing solutions.
On November 22, Citi reiterated its Buy rating for MSFT shares, setting a price target of $497. Following Microsoft’s Ignite conference, Citi highlighted the company’s strong position in AI innovation. The event unveiled over 80 new products and features, with a focus on customizable AI ‘agents’ designed for various business units rather than specific use cases. Microsoft Corporation (NASDAQ:MSFT) also announced significant updates to its Fabric platform, including future support for SQL Database, and introduced enhanced capabilities for AI Foundry, further strengthening its platform’s appeal.
Moreover, the tech giant reported robust Q1 FY2025 earnings, with revenue rising 16% year-over-year to $65.6 billion. Microsoft Cloud continued its impressive performance, generating over $38.9 billion in revenue, a 22% increase from the prior year. Additionally, the company’s AI segment is on track to surpass a $10 billion annual run rate in the upcoming quarter, underscoring its growing influence in the AI space.
7. Novo Nordisk A/S (NYSE:NVO)
Navellier & Associates’ Stake Value: $14.1 million
Number of Hedge Funds Holders: 61
Novo Nordisk A/S (NYSE:NVO), headquartered in Bagsværd, near Copenhagen, Denmark, is a leading global healthcare company specializing in treatments for obesity, diabetes, and rare diseases. Operating in over 168 countries with a workforce of 48,000 employees, Novo Nordisk is renowned for its products, including Ozempic, Rybelsus, and Wegovy.
On November 22, BMO Capital reaffirmed its Outperform rating on Novo Nordisk A/S (NYSE:NVO) and maintained a $156 price target. The firm highlighted the potential positive impact on Novo Nordisk’s stock following developments involving its parent company, Novo Holdings. Reports suggest that Novo Holdings is likely to secure European Union antitrust approval for its proposed $16.5 billion acquisition of Catalent, which could strengthen Novo Nordisk’s strategic position.
In Q3 2024, Novo Nordisk A/S (NYSE:NVO) reported impressive growth, with sales rising 24% and operating profit increasing 22%. The company’s GLP-1 treatments for diabetes have continued to expand their reach, now serving over 43 million patients worldwide, further solidifying its leadership in the healthcare sector.
6. Super Micro Computer, Inc. (NASDAQ:SMCI)
Navellier & Associates’ Stake Value: $15.27 million
Number of Hedge Funds Holders: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) designs and manufactures high-performance server and storage solutions based on modular and open architecture, serving both domestic and international markets.
On November 19, shares of SMCI surged in after-hours trading following the company’s announcement of appointing BDO USA as its auditor and submitting a compliance plan to Nasdaq which seeks additional time to meet listing requirements. While the company expressed confidence in completing its outstanding annual and quarterly reports, it did not provide a specific timeline.
For Q1 2025, Super Micro Computer, Inc. (NASDAQ:SMCI) reported a substantial year-over-year revenue increase, driven by strong demand for its AI-focused solutions. Preliminary net revenue is estimated at $5.9 billion to $6 billion, reflecting a 181% rise from the prior year. Non-GAAP earnings per share are projected at $0.75 to $0.76, marking a 122% increase. Additionally, the company is scaling its manufacturing capabilities and expects continued growth in its direct liquid cooling technology, positioning it for further expansion in the AI and server markets.
5. Quanta Services Inc. (NYSE:PWR)
Navellier & Associates’ Stake Value: $17.55 million
Number of Hedge Funds Holders: 58
Quanta Services Inc. (NYSE:PWR) delivers infrastructure services to the electric power, pipeline, industrial, and communications sectors. Its offerings encompass planning, design, installation, program management, maintenance, and repair of diverse network infrastructures.
In its third-quarter results, the company reported revenues of $6.5 billion, a net income of $293.2 million, and adjusted earnings per share of $2.72. Quanta Services also achieved a record-breaking $34 billion in total backlog. The recent acquisition of Cupertino Electric has bolstered its capabilities in technology and data centers, with anticipated revenues of $1 billion to $1.1 billion stemming from the deal.
While the company faced costs related to Hurricanes Beryl and Helene, Quanta remains optimistic about its growth trajectory. It forecasts double-digit EPS growth for 2025 and expects EPS to reach $11 to $12 by 2026. Additionally, the renewable energy segment is projected to deliver double-digit margins by 2025.
On November 4, DA Davidson raised its price target for Quanta Services stock from $260 to $295, maintaining a Neutral rating. The upward revision reflects improved 2025 estimates and new preliminary forecasts for 2026, signaling confidence in the company’s long-term growth potential.
4. Costco Wholesale Corporation (NASDAQ:COST)
Navellier & Associates’ Stake Value: $19.18 million
Number of Hedge Funds Holders: 75
Costco Wholesale Corporation (NASDAQ:COST) operates a membership-based warehouse club chain, offering discounted bulk pricing on a wide range of products, including groceries, electronics, and household goods. The loyalty of its members drives the company’s profitability, with membership fees serving as a major contributor to its revenue.
In Q4 2024, Costco Wholesale Corporation (NASDAQ:COST) reported strong financial results, with revenue climbing 1% year-over-year to $79.7 billion and net income rising 9% to $2.354 billion, while e-commerce sales were a standout, surging by 18.9%. Additionally, the company updated its executive bonus plan to include environmental and social performance criteria, effective fiscal year 2025, reflecting its commitment to sustainability.
On October 17, Tigress Financial Partners reiterated its Buy rating for Costco Wholesale Corporation (NASDAQ:COST) shares and raised the price target to $1,065. The firm attributed its bullish stance to Costco’s consistent in-store traffic and robust e-commerce growth. Tigress also emphasized Costco’s ability to deliver above-average Return on Capital and growing Economic Profit, key contributors to enhanced shareholder value.
3. Eli Lilly and Company (NYSE:LLY)
Navellier & Associates’ Stake Value: $22.12 million
Number of Hedge Funds Holders: 106
Eli Lilly & Company (NYSE:LLY) is a leading global pharmaceutical company that develops, manufactures, and sells a broad range of medications. Founded in 1876, it has grown into one of the world’s largest pharmaceutical firms.
Eli Lilly & Company (NYSE:LLY) saw significant growth in its third-quarter earnings, with a 42% increase in revenue, driven primarily by strong sales of its diabetes and cancer drugs, Mounjaro and Zepbound, which collectively exceeded $3 billion. Earnings per share also rose to $1.18, compared to just $0.10 in the same quarter last year.
Looking forward, the pharma giant raised its revenue guidance to between $45.4 billion and $46 billion, projecting 50% growth in the fourth quarter. The company’s strategic investments, including $2 billion in Ireland and $4.5 billion for the Lilly Medicine Foundry in Indiana, have been crucial to its ongoing expansion.
At the end of October, Truist Securities slightly adjusted its price target for Eli Lilly & Company (NYSE:LLY) shares to $1,029, down from $1,033, while maintaining a Buy rating. The adjustment reflects Eli Lilly’s recent performance and market conditions, with Truist highlighting sustained demand for its type 2 diabetes and obesity treatments as key growth drivers.
2. Emcor Group Inc. (NYSE:EME)
Navellier & Associates’ Stake Value: $26.18 million
Number of Hedge Funds Holders: 40
Emcor Group Inc. (NYSE:EME) specializes in mechanical and electrical construction, industrial and energy infrastructure, and building services. Its offerings include electrical and mechanical construction, energy solutions, and facility maintenance.
In Q3 2024, Emcor Group Inc. (NYSE:EME) reported record-breaking revenues of $3.7 billion, a 15.3% increase compared to the same period in 2023. Operating income soared 54.7% to $363.5 million, while diluted earnings per share rose significantly to $5.80. The company also achieved a milestone with Remaining Performance Obligations (RPOs) reaching $9.8 billion, reflecting 13.4% year-over-year growth.
On November 15, Stifel initiated coverage of Emcor Group Inc. (NYSE:EME) with a Buy rating and a $600 price target. The firm emphasized Emcor’s strong market position in large-scale data center and manufacturing projects. The analysis also cited the company’s extensive scale, advanced virtual design and construction (VDC) capabilities, and robust pre-fabrication assets as key factors driving its competitive advantage.
1. NVIDIA Corporation (NASDAQ:NVDA)
Navellier & Associates’ Stake Value: $67.32 million
Number of Hedge Funds Holders: 193
NVIDIA Corporation (NASDAQ:NVDA), a global leader in graphics computing and networking, leverages its GPUs to dominate the gaming and AI markets, contributing to its trillion-dollar valuation.
On November 22, Jefferies reaffirmed its Buy rating for NVIDIA Corporation (NASDAQ:NVDA) with a price target of $185. The firm projects sustained demand for NVIDIA’s Hopper products through mid-2025, with Blackwell products expected to face supply constraints well into late 2025 and potentially 2026. Insights from the SC24 industry conference further highlighted robust demand for NVIDIA’s offerings, consistent with the strong levels observed in 2023.
NVIDIA Corporation (NASDAQ:NVDA) reported a record $35.1 billion in total revenue, exceeding expectations, and forecasts $37.5 billion for the next quarter. The upcoming Blackwell chips are also anticipated to significantly drive revenues. Although initial ramp-up costs for Blackwell may temporarily pressure gross margins, the company expects them to stabilize at mid-70% levels in the latter half of the year.
While we acknowledge the potential of NVDA, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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