We recently compiled a list of the Louis Navellier’s Top 15 Long-Term Stock Picks. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against the other stocks.
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.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
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.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
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).
A customer in a warehouse aisles, browsing the wide range of branded and private-label products.
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.
Overall COST ranks 2nd on our list of Louis Navellier’s top long-term stock picks. While we acknowledge the potential of COST 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 COST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
