Navellier Growth: your source for market-beating growth stocks

Imagine that instead of hovering around 13,600, the Dow Jones Industrial Average is closing in on 70,000. Impressive, no? But that's where the Dow would be if it had merely kept pace with my legendary Emerging Growth Buy List. Instead, the Dow is over 55,000 points behind us!

I'm proud to have achieved such a great long-term track record. Over the last 23 years, the stocks on my Emerging Growth Buy List have gained over 5,500%. By the way, those aren't my numbers—that's from The Hulbert Financial Digest, which is an independent tracker of financial newsletters.

I have to thank my team of analysts who work day and night looking for the best profit opportunities on Wall Street. My goal is to double your money every four years, and we've been able to do that—a little faster actually—for nearly a quarter of a century.

This week, however, I want to tell you why I think 2008 could be our best year ever. I should add that our best year so far was in 1991 when our Buy List soared 83.9%. In fact, I see a lot of the same things coming together that helped us out 17 years ago.

Before I get into the nitty-gritty, I want to let you know that you can sign up now for a three-month trial subscription to Emerging Growth. That includes three months of the newsletter, access to my legendary Buy List including my risk profiles and buying instructions. You'll also get access to my weekly hotlines and special flash alerts. This is a great opportunity for all investors, and I encourage you to act now. In fact, if you're not satisfied within the first 90 days (three months) of service, then we'll give you your money back! That's how much I stand behind Emerging Growth.

The reason you need to move quickly is that the Federal Reserve meets again on Tuesday in Washington. The stock market could stage one of its strongest rallies of the year. Wall Street thinks it's a foregone conclusion that Bernanke & Co. will cut interest rates. I agree, but here's where Wall Street and I part ways: I think the Fed will cut rates by 0.50% instead of the 0.25% that Wall Street expects.

A 0.5% cut could launch a "buying panic" just as it did in September. That's when the Dow surged 336 points in one day. So if you wait, you risk missing out on the best returns. Many of my Buy List stocks are the ones that will benefit the most from lower rates. That's exactly the strategy I took in 1991. That year, the Fed cut rates 10 times, and that helped propel our 83.9% gains. I don't think most investors realize the profit opportunity here—or worse, they're holding the wrong kinds of stocks. Bill Gross, the bond guru, just said that the Fed could bring interest rates all the way down to 3% next year. I think he may be right.

Let me give you a preview of how our Emerging Growth stocks could react. Today, one of my favorite tech stocks, Methode Electronics (MEI), exploded 27% higher. That's more than most stocks make in one year. Heck, even two years. But this is exactly the kind of return that Emerging Growth subscribers have come to expect.

The catalyst for Methode's explosive rally today was an earnings report that simply floored Wall Street. Profits soared 80%. The company beat expectations by 29%. And if that weren't enough, they raised guidance as well. Institutional investors have been tripping over each other all day to buy more shares. Fortunately, my subscribers and I enjoying watching the chaos from a safe distance. I first recommended Methode to Emerging Growth investors three months ago when no one was interested. I continue to like MEI, and I rate it a strong buy for moderately aggressive investors up to $14 a share.

Methode is hardly our only stock ready to surge. In fact, I see dozens of great buys. In my December issue of Emerging Growth, I detail my Top 10 stocks to buy right now. If you've been reading "What's Working on Wall Street Now" for a while, you may recall that I'm a big fan of Guess (GES), the teen jean machine. GES is one of my highest-rated consumer stocks. I highlighted the stock back in August, and I said it was my next candidate to stun Wall Street with a strong earnings report.

How did I know this? Easy, I have a teenage daughter. I've learned to never underestimate the power of young female shoppers. I also have a team of analysts who run the numbers on every stock, and we saw a compelling buy.

Over the summer, the consensus of Wall Street analysts was expecting Guess to report earnings of 33 cents a share for Q2. Please, what were they thinking? My team and I knew that Guess would earn 35 cents at the least. Sure enough, just after Labor Day Guess reported second-quarter earnings of 40 cents a share.

Guess was due to report third-quarter earnings this week, and I saw the same thing happening. I'm not sure why these analysts continually underestimate Guess. Maybe they're simply afraid to stand out from the pack. Sure enough, GES beat earnings again. For the third quarter, Guess earned 62 cents a share, five cents more than Wall Street was expecting.

Guess has been a huge winner for us. I first recommended shares of GES to my subscribers in March 2006, and the stock is up over 140% for us. Again, that's the power of Emerging Growth investing. I currently rate Guess a strong buy up to $50 a share for conservative investors.

For serious investors looking to the beat the Dow in 2008, Guess and Methode Electronics are two great places to start. That's all for this week. The big news next week will be the Federal Reserve meeting on Tuesday. Expect an announcement at 2:15 p.m. ET. Don't let the rally pass you by!

Sincerely,

Louis Navellier