In this article, we discuss the top 15 long-term stock picks of Louis Navellier.
Louis Navellier is a prominent American investor, author, and financial analyst, best known for his quantitative approach to stock selection and his long-standing track record in the investment industry. As the founder and chairman of Navellier & Associates, a private investment management firm, he has built a reputation for identifying high-growth stocks with significant upside potential. Navellier’s approach blends rigorous quantitative analysis with a focus on fundamental factors, positioning him as a leading voice in growth investing.
Born in 1957, Navellier developed an early interest in the stock market. He honed his analytical skills while studying at California State University, where he earned a Bachelor’s degree in Finance. It was during his college years that Navellier discovered his passion for quantitative analysis, developing a stock-picking system as part of a class project. This project laid the foundation for his career, as he created a system to identify market-beating stocks using specific growth and valuation criteria.
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In 1980, Navellier founded Navellier & Associates, which has grown into a respected investment management firm catering to high-net-worth individuals and institutional clients. Over the years, the firm has managed billions of dollars in assets, applying Navellier’s quantitative methodology to identify outperforming stocks. Navellier is also widely known for publishing the Navellier Growth newsletter, where he shares stock recommendations and insights into market trends. In his newsletter-based recommendations, many stocks have achieved annualized returns exceeding 20% during high-growth market periods.
Navellier’s approach focuses on finding stocks that exhibit strong growth characteristics while maintaining sound fundamentals. He relies heavily on quantitative analysis, utilizing algorithms and statistical models to screen for stocks with high revenue and earnings growth, solid profit margins, and favorable valuation metrics. Unlike many value investors who prioritize underpriced securities, Navellier embraces growth investing, emphasizing companies with strong momentum and the potential for rapid expansion. This strategy often leads him to sectors like technology, healthcare, and consumer goods.
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For this article, we selected stocks by combing through the 13F portfolio of Navellier & Associates at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. 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).
Louis Navellier of Navellier & Associates
Louis Navellier’s Top 15 Long-Term Stock Picks
15. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 58
Navellier & Associates’ Stake: $3.5 million
Lockheed Martin Corporation (NYSE:LMT) operates as a security and aerospace firm. There are multiple factors that have helped the company attract investor attention in recent months. The most important is the solid financial performance. As per the reports of the third quarter of 2024, net sales were $17.1 billion, compared to $16.9 billion in the third quarter of 2023, and net earnings in the third quarter of 2024 were $1.6 billion, or $6.80 per share, compared to $1.7 billion, or $6.73 per share, in the third quarter of 2023. The firm is also working on exciting new projects. For example, the LM 400 under development is a multi-mission, mid-size satellite designed for flexible operations in space. It allows military, civil, and commercial users to perform space missions. Lockheed is also leading in the development of hypersonic missile technology.
14. Universal Corporation (NYSE:UVV)
Number of Hedge Fund Holders: 14
Navellier & Associates’ Stake: $3.7 million
Universal Corporation (NYSE:UVV) is a company that deals in sourcing, processing, and supplying leaf tobacco and plant-based ingredients worldwide. The firm is one of the top long-term stock picks of Louis Navellier. It has been a part of the 13F portfolio of the fund since the second quarter of 2020. Back then, the stake consisted of around 82,000 shares purchased at an average price of $43.98. In six of the last seven quarters, the hedge has reduced its stake in the firm, although the trimming has not been too noteworthy.
13. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 68
Navellier & Associates’ Stake: $3.9 million
The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods. In the fourth quarter of fiscal year 2024, the total net sales were $84 billion, showing a 2% increase from the previous year. In addition, the company announced a 7% dividend increase, marking the 68th consecutive annual dividend increase. This demonstrates the company’s ability to maintain long-term profitability and generate stable cash flows, which is an appealing factor for investors. Moreover, P&G recently announced a $96 million expansion of the Central Louisiana Fabric Care product manufacturing facility. This initiative will help create 15 direct new jobs with an average annual salary of $70,000 while retaining 572 current positions. Louisiana Economic Development estimates the project will result in the creation of 35 indirect new jobs for a total of 50 potential new jobs in the Central Region.
12. Huntington Ingalls Industries, Inc. (NYSE:HII)
Number of Hedge Fund Holders: 20
Navellier & Associates’ Stake: $4.5 million
Huntington Ingalls Industries, Inc. (NYSE:HII) is one of the renowned military shipbuilding companies providing professional services to partners in government and industry. There are multiple factors, such as financial performance, new initiatives like Vision Centers, and strategic contracts, that prime the stock for investment. As per the reports of the third quarter of 2024, the net revenue was $2.7 billion, total earnings were $101 million or $2.56 diluted earnings per share, and free cash flow was $136 million. HII was recently also awarded a $65 million contract to support warfighting development.
11. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 68
Navellier & Associates’ Stake: $4.8 million
Amgen Inc. (NASDAQ:AMGN) discovers, develops, manufactures, and delivers human therapeutics worldwide. As per the report of the third quarter of 2024, total revenues increased 23% to $8.5 billion in comparison to the third quarter of 2023, and GAAP earnings per share increased 62% from $3.22 to $5.22. In addition, the company generated $3.3 billion of free cash flow in the third quarter of 2024 versus $2.5 billion in the third quarter of 2023. Amgen is also planning to invest $1 billion to establish a second drug substance facility in North Carolina. This initiative will help the company meet the growing demand for innovative therapies while generating significant local economic impact. Moreover, Amgen is working on an innovative pipeline of therapies that target different diseases like heart disease, cancer, osteoporosis, and many more.
10. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 58
Navellier & Associates’ Stake: $5.1 million
PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. The financial performance of the firm is as solid as ever. As per the report of the second quarter of 2024, the company posted net revenues of $24.19 billion, marking a 4% increase year-over-year and net income was $3.05 billion, marking a solid 6% growth compared to the same period in the last year. These figures show the company’s operational efficiency and strong brand portfolio. PepsiCo also plans on reducing plastic usage, conserving at least 140,000 hectares by the end of 2025 and reducing absolute greenhouse gas emissions across the value chain by more than 40% to achieve net-zero emissions by 2040. In a nutshell, the company’s commitment and efforts reflect a forward-thinking approach, which serves as a solid foundation for investors seeking companies with strong net worth and sustainable development programs.
9. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 66
Navellier & Associates’ Stake: $5.4 million
ConocoPhillips (NYSE:COP) is an energy company based in Texas. There are multiple factors, such as strong financial performance, and strategic projects like the Willow Project and Nuna Project, that create a solid foundation for investment. As per the reports of the third quarter of 2024, earnings per share of the company was $1.76. It also raised its quarterly dividend by 34% to $0.78 per share and expanded its share repurchase authorization by up to $20 billion. Moreover, projects like Willow, based on rational energy policy, support the energy transition and US energy security by producing reliable, low-emissions-intensity oil from a petroleum reserve. Another project named Nuna aims to add 29 development wells, on-pad infrastructure, and pipelines that tie back to existing processing facilities.
8. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 235
Navellier & Associates’ Stake: $6.1 million
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. As per the third quarter of 2024, total revenue was $40.59 billion, an increase of 19% year-over-year. Revenue on a constant currency basis increased 20% year-over-year. In addition, share repurchases were $8.86 billion of Class A common stock and total dividend and dividend equivalent payments were $1.26 billion. This portrays the company’s commitment to delivering consistent returns to investors and its strong market position. Moreover, the company has integrated AI-powered chatbots into WhatsApp to drive ecommerce sales and improve customer experience, which holds the capacity to generate up to $45 billion in revenue by 2030. Furthermore, Meta has developed LLaMA (Large Language Model Meta AI), a state-of-the-art foundational large language model designed to help researchers advance their work in this subfield of AI.
7. Phillips 66 (NYSE:PSX)
Number of Hedge Fund Holders: 39
Navellier & Associates’ Stake: $6.3 million
Phillips 66 (NYSE:PSX) is an energy manufacturing and logistics firm. The following factors make Phillips 66 a prime avenue for investment. Firstly, its strong financial performance in the third quarter of 2024 secures its position in investment portfolios. As per the reports, the total earnings were $346 million or $0.82 per share, adjusted earnings of $859 million or $2.04 per share, and the firm returned $1.3 billion to shareholders through dividends and share repurchases. In addition, it also achieved a business transformation $1.4 billion run-rate savings target, including a $1 per barrel refining cost reduction. The company is making efforts to transition towards renewable energy sources by converting its Rodeo Refinery in California into a renewable fuel facility, producing renewable diesel, aviation fuel, and other products; this will reduce carbon emissions and produce lower-carbon intensity fuel. Moreover, the company’s alliance with NextEra Energy to power the Rodeo Renewable Energy Complex with solar energy. This is expected to generate approximately 60,000 megawatt-hours of electricity annually in 2025.
6. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 68
Navellier & Associates’ Stake: $6.7 million
AbbVie Inc. (NYSE:ABBV) develops and markets pharmaceutical products. The following factors make AbbVie a prime investment opportunity. Firstly, its financial performance, as reported in the third quarter of 2024, portrays the company’s commitment to improving its worth. For instance, reported net revenues were $14.460 billion, an increase of 3.8% on a reported basis or 4.9% on an operational basis as compared to the previous year. This growth was driven by strong performance in the neuroscience segments and immunology. Second, the company’s acquisition of Aliada Therapeutics is another great factor, making AbbVie a great investment choice. This would help gain access to ALIA-1758, an efficient Alzheimer’s disease therapy, which will enhance AbbVie’s neuroscience pipeline and R&D capabilities. Moreover, the partnership of AbbVie and Simcere Zaiming to develop a novel tri-specific antibody candidate in multiple myeloma can serve as another attractive factor for investors. This collaboration will help the company expand its oncology portfolio and gain a notable position in the biopharmaceutical world.
5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Navellier & Associates’ Stake: $13.4 million
Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. The first factor that makes this company an appealing investment opportunity is its robust financial performance. In the fourth quarter of the fiscal year of 2024, the company reported revenue of $94.9 billion, a 6% increase year-over-year. The operating income for the quarter was $27.9 billion, reflecting a 15% increase compared to the same period in the prior year. The second most pertinent factor that makes Apple a great investment opportunity is its integration of Apple Intelligence in all its products to enhance productivity and meet the evolving needs of the world. Siri’s improved neutral language processing, the Apple Neural Engine (ANE) for machine learning tasks, and AI-driven tools within iOS are some of the AI advancements that investors should take note of. Moreover, Apple has recently announced plans to expand recycled material across its products, including a new 2025 target to use 100% recycled cobalt in all batteries designed by Apple. This strategy positions the company as a leader in environmentally conscious manufacturing.
4. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 279
Navellier & Associates’ Stake: $13.8 million
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The following are the reasons that make Microsoft stand out as a compelling investment choice. Firstly, according to the fourth quarter of the fiscal year 2024, Microsoft reported an operating income of $27.6 billion, showing an increase of 23%, net income was $21.9 billion and increased by 20%, and diluted earnings per share was $2.94 and increased 20%. These figures show the company’s ability to generate substantial results and a business model capable of adapting to evolving market conditions. Secondly, as AI has become an emerging trend, Microsoft plans to invest approximately $80 billion to build out AI-enabled data centers to train AI models and deploy AI and cloud-based applications around the world. Microsoft has also relaunched its free Copilot for businesses as Microsoft 365 Copilot chats, which will help users adopt the full Microsoft 365 Copilot.
3. Quanta Services, Inc. (NYSE:PWR)
Number of Hedge Fund Holders: 58
Navellier & Associates’ Stake: $17.5 million
Quanta Services, Inc. (NYSE:PWR) is a corporation providing different infrastructure services for electric power, communication, industrial, and pipeline industries. Enhanced financial performance, acquisition of Cupertino Electric, and involvement in renewable energy projects like SunZia make Quanta Services an appealing company for investment. For instance, according to the report of the third quarter of 2024, Quanta Services delivered double-digit growth in multiple financial metrics, reaching a total backlog of $34 billion and generating a free cash flow of $539.5 million. This perfectly portrays the company’s strong operational efficiency and financial health, which is improving each year. Moreover, Quanta’s acquisition of Cupertino Electric, a premier electrical infrastructure solutions provider to the technology and renewable energy industries, diversifies the company’s customer base and positions for growth. Lastly, the company’s selection for the SunZia Transmission and SunZia Wind Projects also shows its capability in large-scale renewable energy infrastructure.
2. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 75
Navellier & Associates’ Stake: $19.1 million
Costco Wholesale Corporation (NASDAQ:COST) engages in the operation of membership warehouses. There are multiple factors that make Costco Wholesale Corp a compelling option for investors, such as consistently increasing net sales, expanding initiatives into new markets, and improving technological infrastructure to improve customer experience. For instance, as per the report of the third quarter of 2024, total net sales were $249.6 billion, an increase of 5% and net income was $7.4 billion, $16.56 per diluted share, an overall increase of 17%. In addition, revenue from membership fees increased from 5% to $4.8 billion. This demonstrates the company’s stable growth in net sales and improvement in finances as compared to the previous year. Moreover, the company plans to expand by the end of 2025 inside the United States, as well as in South Korea, and Japan.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
Navellier & Associates’ Stake: $67.3 million
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, computing and networking solutions. There are multiple factors grabbing investors’ attention in the stock, such as its robust financial performance, innovative tech projects, and technological advancements, adapting to the current modern needs of the world. For instance, as per the report of the third quarter of 2024, the total revenue reported was $35.1 billion, up 17% from the previous quarter and up 94% from the previous year. This high growth is driven by the demand for the Hopper computing platform, which is necessary for all AI applications. Subsequently, there was also a 15% rise in gaming revenue, which also played its part in boosting sales of GeForce RTX 40 Series GPUs. Moreover, NVIDIA Corp has announced the project DIGITS, a personal AI supercomputer powered by the GB10 Grace Blackwell Superchip, capable of providing generative models with up to 200 billion parameters. With AI advancement, such projects can offer growth potential and long-term value for investors.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than NVIDIA Corporation (NASDAQ:NVDA) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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