I recently watched the “Prediction 2022” presentation by Louis Navellier on the InvestorPlace website and decided to share my thoughts about it in this post.
During the video, Navellier shared his predictions for 2022, discussed how his QuantScore system works, and mentioned one stock that the system has given a “Grade A” rating. He also pitched his service, Breakthrough Stocks, which costs $1,495.
In this post, I’ll walk you through what Navellier is predicting, what his stock pick is, and give you the heads up about Breakthrough Stocks to help you decide if it’s worth it.
But first, let’s look at the man behind all of this…
Who Is Louis Navellier?
Louis Navellier is a professional money manager with over 40 years of experience who runs a money management firm called Navellier (AKA Navellier & Associates). And he heads up several stock picking services for InvestorPlace.
Louis Navellier’s flagship advisory is called Growth Investor, but the service he’s pitching in the Prediction 2022 presentation is called Breakthrough Stocks (more on this shortly).
What’s his story?
According to Louis Navellier, his career as a stock picker began while he was still in college.
In short, he says he was tasked with building a computer-generated system capable of matching the performance of the S&P 500. And he says he found a “breakthrough method” for using computers to rank and outperform the stock market in the process.
Today, Navellier says he uses a similar system to identify stocks.
How has it worked out?
According to Louis Navellier, pretty well:
“Today, my system runs on cutting-edge servers… crunching market data that was never available before…
It’s cost me millions of dollars, countless man-hours… but gets more optimized as each day passes.
In fact, since 2003 anyone who followed the S&P 500 would have turned a $100k portfolio into about $462,000.
While those with full access to my system and acting upon my recommendations would be sitting on $2.95 million!”
This doesn’t mean Louis Navellier’s current stock picks will make you money, but that’s the gist of his background as a stock picker – he’s essentially a “numbers guy” who uses quantitative analysis to find potential opportunities in the market.
And that’s a big part of his “Prediction 2022” presentation.
The presentation centers around how Louis Navellier’s system grades stocks from A to F and how it has identified a group of small-cap stocks he’s bullish on.
So, let’s discuss what Navellier is predicting, how his system works, and what stock he teased in the presentation.
What Is Louis Navellier Predicting? (Prediction 2022)
During the “Prediction 2022” event, Louis Navellier predicted that the “next phase of the market” could be the last opportunity to see substantial gains for decades to come.
“Then this next phase of the market may be your greatest – and LAST – opportunity to see substantial gains… potentially for decades to come.”
According to Louis Navellier, there’s an “evolutionary shift taking place in America right now,” which will benefit some and leave others behind. And he said it all starts with “one particular type of investment” he believes will “deliver explosive growth.”
Navellier explained to Paul Ghiringhilli (the presentation’s host) that there’s one type of stock he is recommending, which he believes could benefit those who get in early.
“Paul… right now my system is picking up on a new series of bullish predictions…
Which is why there’s one particular type of stock I urge you to buy immediately.
Because those who have the ability to get in early on this opportunity… could have the chance to join a new wave of brand-new millionaires…”
What type of stock is he talking about?
In short, Navellier is bullish on companies with earnings and revenue growth that his system has identified as “Grade A” stocks, and most of his picks appear to be small caps.
In the presentation, Navellier said he believes we’re going to see a “massive shift in capital” as the “smart money” (institutional investors) look for “new yield opportunities.”
“And I believe you are going to see a massive shift in capital… as the ‘smart money’ begins to scramble looking for new yield opportunities.”
According to Navellier, the “easy money has been made.” And moving forward, he believes savvy investors will need to seek out companies that are growing earnings and revenue.
“The easy money has been made… moving forward…
And into the foreseeable future… savvy investors are going to have to earn every dollar they make.
And trying to identify those companies poised for a breakout… able to grow earnings and revenue… and producing a real yield for investors is no easy task… let alone in these uncertain times.”
Navellier also said that his system has “locked onto several potentially explosive opportunities” among small-cap and mid-cap stocks.
A small-cap stock is a publicly listed U.S. company with a market capitalization of between $300 million to $2 billion. And a mid-cap stock has a market cap of $2 billion to $10 billion.
The former is what Louis Navellier’s Breakthrough Stocks service focuses on – small caps.
On the one hand, these stocks are small and unproven, so the upside potential is huge. But so is the risk. These stocks can be super volatile, so it can be easy to lose money betting on these types of stocks, especially if you’re not an expert stock picker.
And that’s essentially where Navellier’s system comes into play.
He claims it has given five small caps a “Grade A” score and that any one of his picks could hand you 1,000% gains over “the next few years.”
“My system has targeted five additional small caps that have just achieve that top ‘Grade A’ score…
Any one of these five stocks has the chance to hand you an additional 1,000% in gains over the next few years.”
Unfortunately, he doesn’t reveal what those five stocks are in the presentation.
Instead, he shares his picks in a report called “5 ‘Grade A’ Stocks That Could Deliver 10 Times Your Money,” which you get with a subscription to Breakthrough Stocks for $1,495.
But he did reveal one “Grade A,” “Strong Buy” stock in the Prediction 2022 video.
So, let’s look at that now.
Then, I’ll give you an overview of how Louis Navellier’s system works and what you get if you join Breakthrough Stocks to help you figure out if it’s worth the money.
Recommended: Go here to see my #1 rated stock advisory of 2022
What’s Navellier’s “Strong Buy” Recommendation?
During the Prediction 2022 presentation, Louis Navellier said that his system has rated EOG Resources (ticker: EOG) as a “Grade A” and “Strong Buy.”
It’s a ‘Strong Buy’…”
Why’s he bullish on this company?
From what I understand, it’s not so much that Louis Navellier has hand-picked this stock; it’s that his system has identified it as a potential winner. And as I’ll explain shortly, the system uses eight factors (and one additional “proprietary” factor) to rate stocks.
In any case, while the system may have identified the stock, it’s Navellier’s system. And he did share some insights into why he’s interested in this company…
The company operates primarily in Texas, with operations in the Permian Basin, and has more than 11,500 drilling locations.
Louis Navellier also said his system is predicting a drop in Facebook’s stock:
“My system is predicting a drop in Facebook’s stock…
Right now, my system is giving Facebook a dreaded Grade D.
As you know, Meta just recently had the biggest one-day wipeout in U.S. corporate history … erasing nearly $240 billion in investor wealth in one day… after posting disastrous fourth-quarter results…
And the stock is not out of the woods yet… facing new competition from the likes of TikTok and Snapchat…”
Those are the only two recommendations Navellier shared in the presentation regarding individual stocks his system has graded. But he said his system scans thousands of stocks and is always coming out with new recommendations.
How Does Louis Navellier’s System Work?
During the Prediction 2022 presentation, Louis Navellier explained that he has created a system for predicting whether a stock is poised to go up or down.
“I created a system.
A system that removes all the fear and anxiety around picking stocks…
A system with a track record of predicting, with remarkable accuracy, whether a stock is poised to go up… or down…”
And according to Navellier, it forecasts the future movement of over 5,500 stocks:
“In the simplest of terms, Paul, I’ve developed a way to see which stocks are poised to soar 100%, 500% or more… often just days ahead of their massive moves… by forecasting the future movement of over 5,500 traded stocks.”
How does it work?
According to Louis Navellier, the system uses a “grading methodology” that involves a “sophisticated chain of algorithms” that analyze 1,000s of stocks and assigns them a grade (A, B, C, D, E, or F) based on “eight rigorous assessments.”
“A sophisticated chain of algorithms… which essentially test each and every stock through a complex series of eight rigorous assessments… the result of which… is then compiled into a simple, easy to read and understand letter grade…”
What are the eight factors?
According to a screenshot Louis Navellier shared in the presentation of a stock the system has rated, the system grades stocks based on the following eight factors:
- Sales Growth
- Operating Margin Growth
- Earnings Growth
- Earnings Momentum
- Earnings Surprises
- Analyst Earnings Revisions
- Free Cash Flow
- Return on Equity
Louis Navellier also mentioned a ninth factor, his “proprietary QuantScore.”
He didn’t reveal what the QuantScore is because he said it’s confidential and his own personal “secret sauce.” But it’s apparently the “heaviest weighted score of all.”
“There’s one final evaluation…
Only stocks that excel in the last assessment… receive that elusive overall top rating of Grade ‘A’… receiving my highest ‘Strong Buy’ recommendation.
This ninth and final assessment… is without a doubt… the most important.
And as such… the heaviest weighted score of all…
And that’s my proprietary QuantScore…”
Is the system legit? And does it (actually) work?
I’m not privy to the track record of Louis Navellier’s stock-rating system, nor do I have access to the system, so I can’t say for sure if it’s as good as Navellier claims. However, during the presentation, he said it has identified many winning stocks.
“This system has identified hundreds of money-doubling opportunities… and 100 fully documented winners that could have handed you at least ten times your money…”
Of course, anyone can say anything positive about their own system. But Louis Navellier is a genuine expert with a solid track record, so I doubt he’d make something like that up.
Especially since InvestorPlace is behind it.
However, that doesn’t mean all of his picks have been winners (they haven’t). Nor does it mean you’re guaranteed to make money following his stock picks (you’re not).
So, this is not a get-rich-quick thing.
Aside from the stocks Navellier recommends, how successful you are will also depend on which recommendations you choose to follow. And as mentioned, not all of Navellier’s picks have been winners, so some recommendations could lose you money.
That doesn’t mean the system is a scam. It just means it’s best not to invest more than you can afford to lose because, in reality, nobody can predict the market perfectly.
What Is Breakthrough Stocks?
Breakthrough Stocks is a small-cap stock advisory Louis Navellier runs for InvestorPlace. And on average, he recommends 12 or more small caps each year.
Each month, subscribers receive Navellier’s latest insights and recommendations, the model portfolio so you can see his latest picks, and weekly updates.
You also get the report I mentioned earlier (5 “Grade A” Stocks That Could Deliver 10 Times Your Money) which details five stocks Louis Navellier is bullish on.
How much does it cost?
The Breakthrough Stocks service costs $1,495 if you join through the “Prediction 2022” presentation, and it automatically renews at $1,995 after the first 12 months.
Can you get a refund?
The InvestorPlace website states that the Breakthrough Stocks service does not come with a cash refund policy. However, InvestorPlace does offer subscribers of the service a second year of access based on the following criteria:
“If you don’t see at least 6 different stock recommendations go up 100% or more, over the next 12 months in our model portfolio…
I’ll give you a full, second year of this service on the house.”
Louis Navellier’s Prediction 2022 presentation centers around a system he developed that analyzes stocks on a variety of factors and assigns a letter-based score to them.
He did mention one stock (EOG) his system has identified in the presentation as a “Strong Buy,” but the only way to access his other picks is to join Breakthrough Stocks.
Whether or not you should is something only you can decide.
On the one hand, it could be worth checking out if you’re interested in small caps. And Louis Navellier is a renowned stock picker, especially in the tech space, so it wouldn’t surprise me if some of his recommendations did really well.
On the other hand, nobody has a crystal ball. So no matter how good a system is, it’s still possible to lose money speculating in the stock market.
Anyway, that’s it from me.
And if you’d like to add your two cents, chime in below.