In this article, we will be taking a look at Louis Navellier's 10 stock picks with huge upside potential. To skip our detailed analysis of Navellier's investing strategy and history, you can go directly to seeLouis Navellier's 5 Stock Picks with Huge Upside Potential.
Investing in Energy
Louis Navellier, Chairman and Founder of Navellier & Associates, is an American investor who has inspired many with his adeptness at navigating the stock market and turning a profit. Navellier is the leader of a firm focused on growth investments to drive up profits, something that can be observed in his portfolio as well. Navellier's portfolio has rapidly been picking up energy stocks since 2023, leading many to question this choice of investment. He addressed these questions in a presentation given in October 2022. Here are some of his comments from then:
"Probably, the most controversial thing that we're doing is when we run our weekly stock selection screens, we've just been adding more and more energy stocks, and so, they're 60% of our portfolios right now, and they are going to have the best earnings for the next two quarters. Even though earnings have decelerated for the rest of the market, they've accelerated for us, so we're feeling pretty good."
While this is a presentation from a little over a year ago, Navellier's portfolio even today has a predominant composition of energy stocks, resulting in lists of his top stock picks being influenced by this composition, as our list below shows. Some of the most notable names in the portfolio include NVIDIA Corporation (NASDAQ:NVDA), ConocoPhillips (NYSE:COP), and Exxon Mobil Corporation (NYSE:XOM). These are some of Navellier's top stock picks with huge upside potential today. The decision to stay deeply invested in major oil and energy stocks may be indicative of Navellier's perception of the energy sector as a core requirement for a well-positioned portfolio even today.
Last Week of the Year - Best Time To Buy?
On December 5, Navellier was invited to Fox Business to discuss his opinions on the current market dynamics, especially in light of the November rally. When asked whether he thinks this rally will continue, he noted the following:
"It does [continue] but we probably have to pause for a couple weeks, you know, we get tax selling, we have to digest the incredible gains that small caps had in November. Yesterday, you saw that the small caps were doing very good relative to the large caps, but they should give way a bit. I really think the best time to buy would be right between Christmas and New Years - that would be the best week to buy, and we'll get another surge in January."
When asked to elaborate on why he considers the last week of the year to be the best time to buy, whether it's because of tax selling or because of a Christmas rally, Navellier responded with the following:
"All of the above, but mainly because we're overbought, because we've had an incredible run since November. When you have an early January effect, like we had in November, that means that an actual January effect in January is going to be better, and then we'll have real volume. See, we've had a light volume rally, and it'd be nice to see some real volume."
Hopes for 2024
Navellier's outlook for the end of 2023 and the beginning of 2024 thus seems to be overall optimistic and promising. Regarding his hope for 2024, he had the following to say:
"I'm expecting a very strong opening for the year. Earnings are going to be good because the year-over-year comparisons are much easier. So, we're gonna have a lot to look forward to, and of course, we're gonna have those Fed rate cuts in the new year."
Navellier also delved into a short discussion on the Federal Reserve, and what investors and the general public should keep an eye out for regarding the upcoming Fed meeting in particular. Here's what he said:
"Well, the most important thing is the dot plot that we'll get at that Fed meeting, and Chairman Powell has already admitted that it's going to be pointing downward... As far as the economy slowing, absolutely, you know, we do have record LNG exports, we're exporting 4.8 million barrells of crude oil a day. So that's 2% GDP growth, just from energy exports, and that's also shrinking the trade deficit, which boosts GDP."
Considering Navellier's detailed analysis and renowned knowledge of the markets, we have decided to compile a list of some of his top stock picks, particularly those with high upside potential. These include some of Navellier's top oil and energy stocks with huge upside potential, alongside other names such as semiconductor companies with high upside potential as well. The stocks are part of Navellier's most recent investment portfolio and are among the best stocks with huge upside potential to consider buying today.
Louis Navellier of Navellier & Associates
Our Methodology
We went through Navellier's top 50 stocks in his updated 13F holdings for the third quarter to pick stocks with the highest upside potential as of December 4. We used TipRanks to find the average analyst price targets for the stocks and the upside potential, and ranked the stocks based on the latter, from the lowest to the highest. We also mentioned the number of hedge funds holding stakes in the stocks by using Insider Monkey's hedge fund data for the third quarter.
Louis Navellier's Stock Picks with Huge Upside Potential
10. PBF Energy Inc. (NYSE:PBF)
Navellier & Associates Q3 Stake Value: $3.7 million
Upside Potential as of December 4: 22.41%
Average Price Target: $55.22
Number of Hedge Fund Holders: 35
PBF Energy Inc. (NYSE:PBF) is an oil and gas refining and marketing company based in Parsippany, New Jersey. The company operates through its Refining and Logistics segments to produce gasoline, ultra-low-sulfur diesel, heating oil, diesel fuel, jet fuel, and more.
As of October 9, Ryan Todd, an analyst at Piper Sandler, holds an Overweight rating on shares of PBF Energy Inc. (NYSE:PBF), alongside a price target of $65.
In the third quarter of 2023, 35 hedge funds were long PBF Energy Inc. (NYSE:PBF). Their total stake value in the company was $527 million.
At the end of the third quarter, Citadel Investment Group was the largest shareholder in PBF Energy Inc. (NYSE:PBF), holding 1.6 million shares in the company.
Like NVIDIA Corporation (NASDAQ:NVDA), ConocoPhillips (NYSE:COP), and Exxon Mobil Corporation (NYSE:XOM), PBF Energy Inc. (NYSE:PBF) is one of Navellier's top stock picks with high upside potential according to analysts.
9. ConocoPhillips (NYSE:COP)
Navellier & Associates Q3 Stake Value: $15.1 million
Upside Potential as of December 4: 23.28%
Average Price Target: $142
Number of Hedge Fund Holders: 62
Scott Hanold, an analyst at RBC Capital, maintains an Outperform rating on shares of ConocoPhillips (NYSE:COP) as of November 14. The analyst also raised his price target on the stock from $130 to $135.
ConocoPhillips (NYSE:COP) is an oil and gas exploration and production company. It is based in Houston, Texas. The company explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquid natural gas, and natural gas liquids. It is one of Navellier's top stocks with huge upside potential according to analysts today.
We saw 62 hedge funds long ConocoPhillips (NYSE:COP) in the third quarter, with a total stake value of $3.7 billion.
8. EOG Resources, Inc. (NYSE:EOG)
Navellier & Associates Q3 Stake Value: $11.9 million
Upside Potential as of December 4: 23.45%
Average Price Target: $152.28
Number of Hedge Fund Holders: 45
Holding 7.9 million shares in the company, Harris Associates was the most prominent shareholder in EOG Resources, Inc. (NYSE:EOG) at the end of the third quarter.
EOG Resources, Inc. (NYSE:EOG) is another oil and gas exploration and production company on our list, based in Houston, Texas. The company's principal producing areas are in New Mexico and Texas in the US, and the Republic of Trinidad and Tobago.
A Buy rating was maintained on shares of EOG Resources, Inc. (NYSE:EOG) on November 30 by Derrick Whitfield, an analyst at Stifel. The analyst also raised his price target on the stock from $161 to $165.
A total of 45 hedge funds were long EOG Resources, Inc. (NYSE:EOG) in the third quarter. Their total stake value was $666.4 million.
7. Exxon Mobil Corporation (NYSE:XOM)
Navellier & Associates Q3 Stake Value: $19.5 million
Upside Potential as of December 4: 27.2%
Average Price Target: $131
Number of Hedge Fund Holders: 79
Exxon Mobil Corporation (NYSE:XOM) was spotted in the 13F holdings of 79 hedge funds in the third quarter, with a total stake value of $4.5 billion.
Based in Spring, Texas, Exxon Mobil Corporation (NYSE:XOM) is an integrated oil and gas company. It engages in the exploration and production of crude oil and natural gas in the US and across the globe.
Nitin Kumar, an analyst at Mizuho, maintains a Buy rating on shares of Exxon Mobil Corporation (NYSE:XOM) as of November 14, alongside a price target of $133.
6. Lamb Weston Holdings, Inc. (NYSE:LW)
Navellier & Associates Q3 Stake Value: $6.6 million
Upside Potential as of December 4: 27.63%
Average Price Target: $128.80
Number of Hedge Fund Holders: 46
Lamb Weston Holdings, Inc. (NYSE:LW) is a consumer staples company operating in the packaged foods and meats industry. It is based in Eagle, Idaho, and it produces, distributes, and markets frozen potato products worldwide.
In total, 46 hedge funds were long Lamb Weston Holdings, Inc. (NYSE:LW) in the third quarter, with a total stake value of $2.3 billion.
A Buy rating was reiterated on shares of Lamb Weston Holdings, Inc. (NYSE:LW) on October 12 by Matthew Smith at Stifel, alongside a price target of $115.
Citadel Investment Group was the largest shareholder in Lamb Weston Holdings, Inc. (NYSE:LW) at the end of the third quarter, holding 3.8 million shares in the company.
The London Company mentioned Lamb Weston Holdings, Inc. (NYSE:LW) in its third-quarter 2023 investor letter:
“Lamb Weston Holdings, Inc.(NYSE:LW) – LW underperformed after the company reported lower volumes and provided a cautious outlook. This sparked fears the industry could have too much capacity as volumes slow. However, management has been clear the majority of the lower volume for LW has been intentional by shedding lower margin contracts. On a positive note, the fry attachment rate remained high. We remain attracted to LW’s market share, pricing power, and industry tailwinds.”
Like NVIDIA Corporation (NASDAQ:NVDA), ConocoPhillips (NYSE:COP), and Exxon Mobil Corporation (NYSE:XOM), Lamb Weston Holdings, Inc. (NYSE:LW) is among Louis Navellier's stock picks with high upside potential.
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Disclosure: None. Louis Navellier's 10 Stock Picks with Huge Upside Potentialis originally published on Insider Monkey.
