InvestorPlace recently published a Louis Navellier presentation centered around an “oil shock,” and it’s headlined “Wall Street Legend Reveals His #1 Oil Play for 2022.”
What’s it all about?
According to Louis Navellier, oil is “in a huge bull market,” and we’re still in the “early stages of a major and unprecedented move higher” thanks to the “convergence of several key forces.” And when it’s all said and done, he believes oil could hit $180 a barrel.
“According to my research…
We’re still in the early stages of a major and unprecedented move higher… one that could turn many oil companies into incredible cash machines.
Thanks to the convergence of several key forces building like a pressure cooker, this new bull market will be unlike any we’ve seen before…
I predict it’s going to be bigger than the oil boom of the 1970s…
And bigger than what we saw in the mid-2000s.
When all is said and done, I believe the price of oil could spike to $180 a barrel…”
What company is he teasing?
Louis Navellier said that his “#1 oil stock to buy right now” could “hand investors 3 to 5 times their money,” and towards the end of the presentation, he revealed the ticker:
“Which brings me back to the stock I want to share with you today…
Devon Energy – ticker symbol DVN.”
So Devon Energy is Navellier’s top oil pick “right now.” And given the title of the presentation, this also appears to be his “#1 oil play for 2022.”
That wasn’t the only stock he mentioned, though.
All up, Louis Navellier said he’s bullish on five oil companies.
And if you want to know what his other four picks are, you’ll need to see his “5 Stocks for the New Oil Age” report, which comes with a subscription to Growth Investor.
That said, Navellier dropped some hints about a second oil pick in the presentation, and after looking into the clues, I think I know what he’s teasing.
So in this post, I’ll show you exactly what I found.
But before we get to that, let’s unpack his prediction…
Louis Navellier’s “Oil Boom” Prediction
According to Louis Navellier, despite all the talk about “an entirely green future” involving solar, wind, and electric vehicles… right now, “oil is still king.”
“You’ve been told we’re hurtling toward an entirely green future – one reliant on solar and wind and most of all, battery-powered electric cars.
I still believe that we could get to that future someday…
But right now – no matter how you slice it – oil is still king.
And – as I’ll show you today – I predict it’s going to remain king for at least the next two decades…”
I was a bit surprised to hear Navellier say that, given he recommended an EV battery company called QuantumScape in his “#1 EV Breakthrough of 2022” presentation.
However, he also recommended an oil and gas company called EOG Resources in his recent Prediction 2022 pitch. So he doesn’t seem to limit his picks to any one sector.
What’s got him so bullish on oil?
According to Louis Navellier, it all has to do with oil industry cycles:
“If I learned nothing else in my career, I learned this: The oil industry, like everything else, runs in cycles.
Prices go up…
We look for more oil…
More supply is added to the market…
Supply goes down…
Prices go up…”
To illustrate his point about cycles, Louis Navellier showed a “commodity supercycles” chart going back to the 1800s that showed multiple tops and bottoms in the oil market.
Navellier never actually said that oil is entering a “supercycle,” but the presentation more or less suggests this. And funny enough, I only just finished looking into a presentation from a different guru, Dave Forest, that centered on a similar commodities-related thesis.
Anyway, Navellier said that the oil bull market that’s coming is “going to be the biggest one to date,” and as for why – he listed several “oil super catalysts” in the presentation.
Here’s an overview of the “catalysts” he discussed:
- The “first key catalyst in an oil price spike” Navellier mentioned was “a major supply shortage” of oil due to underinvestment in the sector as the world has moved away from fossil fuels. And he pointed out that it can take “upward of 4 years” to get an oil well operational, so even if more drilling started now, supply could still remain tight for a while.
- Second, Louis Navellier talked about how the economy is starting to open up again after the pandemic and that more people are driving, flying, and buying consumer goods (many of which are made from petrochemicals). And he suggests that this increased demand for oil has “created the perfect storm.”
- Third, he talked about the importance of energy independence given recent events and said this has “kick-started a new American oil age.” One where “formerly beaten down oil companies are about to be hit by a wave of investment.”
Navellier doesn’t appear to be recommending oil itself, though. Instead, he says that the “#1 way to profit in an oil bull market” is with oil stocks.
“The #1 way to profit in an oil bull market is to buy oil stocks that are leveraged to the price of oil.
Well, there isn’t just a 1-to-1relationship between the price of oil and an oil company’s revenues, cash flow, or earnings.
Because oil companies are leveraged, they can see 2x, 3x, even 5x or 10x gains… from a small change in the price of oil. “
What stocks is he recommending?
Navellier has put together a report called “5 Stocks for the New Oil Age,” where he details his picks. And while you do need to join Growth Investor to find out what all of them are, he did share one pick for free and dropped some hints about a second one.
So let’s take a look at what companies he’s teasing.
Louis Navellier’s “New Oil Age” Picks
Louis Navellier’s first “New Oil Age” stock pick is Devon Energy Corporation (ticker: DVN), an oil and natural gas exploration and production company headquartered in Arkansas.
And according to Navellier, there are “quite a few reasons” it’s a “good buy.”
“Now Devon is a good buy for quite a few reasons.
For starters – it’s an all-American company.
Headquartered in Arkansas, it has projects in some of America’s best oil flats… including the Eagle Ford Shale and the Stock Formation in Oklahoma.
Devon has nearly 400,000 net acres of undeveloped drilling rights in North America– which I expect to yield high profits for the company, seeing as they just opened 65 new wells in the area.
Being American-based will allow Devon to step up as money flows back into the oil sector.
Outside of those strong growth fundamentals Devon also pays a great dividend.”
What about his other four oil picks?
Navellier only shared clues about one of these, and here’s what he said:
“That’s why I’ve put together a comprehensive report that breaks down all of these opportunities.
It’s called ‘5 Stocks for the New Oil Age.’
In this report, you’ll find the ticker symbols of four other companies I believe that everyone should own today…
Companies just as well-positioned as Devon…
But with even more upside potential.
One of these companies – I just recommended it in February – is an ‘urgent’ buy.
It’s heading into a massive merger – and plans to pay out a $15 per share dividend.
If you act now, you can get in before this merger date.
Beyond that, every single stock in this model portfolio has operations on American soil…”
That’s not a lot to go off.
But the clues he shared are pretty specific.
Based on what Louis Navellier said, his second pick is a U.S.-based oil company that’s heading into a merger and “plans to pay out a $15 per share dividend.”
What is it? After Googling around, I came across a Reuters article that states that Oasis Petroleum and Whiting Petroleum will merge in a $6 billion deal including debt, which is expected to complete in the second half of 2022. And according to Reuters, Oasis shareholders will “receive a special dividend of $15 per share” once the deal is closed.
Not only that, but Oasis Petroleum is a Texas-based exploration and petroleum company that, according to the company website, develops oil and natural gas resources in the U.S. So it has “operations on American soil,” as Navellier said in the presentation.
And that, when you put it all together, is why I think Oasis Petroleum (ticker: OAS) could be Louis Navellier’s second pick.
At the end of the day, that’s just a guess, though. So Navellier could be teasing a different company. But that’s the closest match to his clues that I could find.
As for his other picks, I don’t know what they are because he didn’t share any hints about those that I could see, other than saying they all have “operations on American soil.”
So if you want the full details about Navellier’s picks, the best idea would be to join his Growth Investor service and see the report he’s put together.
Recommended: Go here to see my #1 rated stock advisory of 2023
What Is Growth Investor?
Growth Investor is an InvestorPlace newsletter service run by Louis Navellier that launched in the 1980s. And according to the InvestorPlace website, he shares a mix of high-growth and dividend stock ideas with subscribers.
Each month, subscribers receive a new issue of Growth Investor, which contains Louis Navellier’s latest stock recommendation and market insights.
And based on the stocks I’ve seen him pitch in different presentations and what the InvestorPlace website states, Navellier’s picks aren’t limited to any one sector, either.
Aside from stock picks, subscribers get access to numerous research reports Navellier has put together, including the “5 Stocks for the New Oil Age” report I mentioned earlier, a model portfolio, market updates, and access to a member’s area website.
Is it legit and worthwhile?
I’m not a member of Growth Investor, but InvestorPlace is a legitimate company, and this is one of their longest-running, most prominent services.
Not to mention, Louis Navellier has over 40 years of experience in finance and, besides stock picking, runs a fund management company based in Nevada.
The service seems to have a solid track record, too. According to Louis Navellier, over a twenty-year period, “Growth Investor outperformed the S&P by nearly 3-to-1.”
That said, no matter how well any service has performed in the past, that doesn’t mean it will do well in the future. So while Growth Investor is a genuine service, there’s no guarantee you’ll make money by subscribing to it and following Navellier’s picks.
Also, keep in mind that there are always risks involved with investing, so as with any service, there’s always a chance you could end up losing money if things don’t work out.
How much does it cost?
The price of a Growth Investor subscription varies depending on where you sign up, but it retails for $199 per year. And as part of this particular presentation, the InvestorPlace website states that it costs $7.99 per month for a monthly subscription.
With tech having taken a beating lately, commodity stocks seem to be the new “hot” trend, and Louis Navellier believes that oil is “in a huge bull market.”
One that could see oil hit $180 a barrel.
Only time will tell if Navellier’s prediction plays out or not, and I have no idea if his picks will go up, down, or sideways. Every stock-picking “guru” I come across seems to have a different opinion as to what will happen next and what the best strategy is. So if nothing else, it will be interesting to see what unfolds moving forward.
In any case, at least now you have a better idea of what companies Louis Navellier teased in the presentation. And as always, if you’d like to share your two cents, comment below.