Louis Navellier, who's built a newsletter and money management business by finding stocks that beat earnings expectations, is near the top of the CNBC Pro Platinum Portfolio challenge this year, up more than 7 percent. With earnings season upon us, here's how he plans to keep beating the market. "My four Platinum stock picks were designed to be recession resistant in a very difficult sales and earnings environment for the S & P 500, since the first-quarter results will be the fifth quarter in a row of negative sales and the fourth quarter in a row of negative earnings," wrote Navellier , chairman of Navellier & Associates, in an email. "Essentially, I picked four stocks that would post positive sales and earnings in adverse market environment," he added. Read More Top investor Malik on how she's beating the market Three of his 4 top holdings for the competition are outperforming the market this year, led by Constellation Brands , up 10 percent, Acuity Brands , 9 percent higher, and Public Storage with a gain of 8 percent. Shares of Total System Services , his fourth holding, are flat for 2016. Said Navellier: "Public Storage is a dividend growth stock that is forecast to post 10.4 percent annual sales growth and 14.7 percent annual earnings growth. Total System Services is forecast to post 6.4 percent annual sales growth and 13 percent annual earnings growth. Both Public Storage and Total System Services will announce their latest quarterly results on April 26 and have been characterized by positive analyst earnings revisions, which typically precede future earnings surprises, so I remain confident in all my Platinum stock picks." The S & P 500 is up just 1.9 percent in choppy trading so far this year and economists expect that GDP in the first quarter increased by just a little more than 1 percent. It is a tough environment to find growth. "I remain very confident that my stocks will remain a sliver lining and oasis in a very chaotic market environment. I should also add that dividend growth, plus strong sales and earnings, remain the key to success in the upcoming months. Unlike a lot of growth managers, I am avoiding high price-to-earnings ratio stocks, like Netflix and Amazon.com ... since stocks with high P-E ratios are excessively volatile and are no longer benefiting from persistent institutional accumulation, which my quantitative research identifies." He added, "So overall, in my opinion, smooth and steady conservative growth stocks should win the Platinum stock picking contest in 2016."
Dean Mouhtaropoulos | Getty Images
Louis Navellier, who's built a newsletter and money management business by finding stocks that beat earnings expectations, is near the top of the CNBC Pro Platinum Portfolio challenge this year, up more than 7 percent.
With earnings season upon us, here's how he plans to keep beating the market.
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