Navellier Growth: your source for market-beating growth stocks

This morning, another major Wall Street brokerage house reported dismal earnings. This time it was Merrill Lynch’s turn. The venerable Wall Street bank posted a first-quarter loss of nearly $2 billion. This was Merrill’s third straight quarterly loss. On top of that, the company also said that it’s going to cut 3,000 jobs.

Fortunately, if you had been tracking Merrill Lynch on PortfolioGrader Pro, you’d have known to steer clear of the stock—I had the firm rated as “F– Strong Sell.” Frankly, I wouldn’t touch most financial stocks with a 10-foot pole. Despite the continuing damage on Wall Street, I’m having no trouble finding great stocks right now. In fact, the current highly selective market is perfect for my style of investing.

For example, all I need to do is look at my March issue of Blue Chip Growth. That issue was packed with great new buys. When everyone else was panicking, we added stocks like Range Resources (RRC) and Weatherford International (WFT). Both stocks are already 19% winners for us, and that’s just since March.

Preview of the May Issue

I’m currently working on the May issue of Blue Chip Growth, and I want to pass along some highlights before I send the issue out to subscribers. I haven’t completed my final battery of tests, but it looks like I’ll be adding five new stocks this month. All are perfectly positioned to dominate this market. In fact, one of the new buys recently reported earnings growth of over 300%.

Before I get to our new buys, I want to tell you why Blue Chip Growth is so widely read on Wall Street. The Hulbert Financial Digest said that our legendary Blue Chip Growth Buy List was up 29.8% last year, beating the market fivefold. MarketWatch rated us one of the Top 10 Best Performing Newsletters of 2007. In the past ten years Blue Chip is up over 274% compared with just 77.6% for the S&P 500.

We're not only celebrating one of our most successful years ever, but I also believe that 2008 can be more profitable. Frankly, no other investment advisory spends as much money on stock research as we do. Nor do any others put their recommendations through as large a battery of tests and simulations as we do, either.

You can sign up today for one year of Blue Chip Growth for just $149—half-off our regular subscription price. That includes 12 monthly issues—and if you act now—you join just in time to receive our May issue—e-mailed to subscribers on Monday. This exclusive offer is only valid through this week’s “What’s Working on Wall Street Now.” So act now!

Now, let’s take a look at my five new Blue Chip Growth buys for May:

New Buy #1

The first stock is an oil and gas exploration and production company. Natural gas prices are soaring, which is good for this stock’s bottom line. But the best news is that the company just reported success with three test wells drilled in a remote area of British Columbia that some experts say could become North America’s next big natural-gas field. 

New Buy #2

The second new buy is one of the leading international engineering and construction firms.  They oversee construction projects for a large range of industrial sectors worldwide. Their fourth-quarter earnings rose 313.3% to $2.82 per share. How’s this for surprising analysts? Wall Street was expecting earnings of just $1.18. That’s an earnings surprise of 139%. Their order backlog now stands at over $30 billion.

New Buy #3

The third stock develops robotic surgical systems. I’m in awe of this company—it’s almost like something out of a science fiction novel. Their systems can accurately reproduce a doctor’s hand movements in real time, with surgery performed by tiny electromechanical arms and instruments inserted in the patient’s body through small openings. They have virtually no competition, and last quarter, earnings doubled. This is one everyone must own.

New Buy #4

The next new buy is one of Russia’s largest steel companies. Consolidation is relentless in this sector, and this stock has been a major buyer. Steel prices are soaring and this Russian company is “King of the Mountain” in steel. I’m expecting dramatically higher earnings over the next several quarters.

New Buy #5

The final new buy is one of the world’s largest agrochemical companies. Monsanto (MON) has been a huge winner for us in Blue Chip Growth (over 330% profits in just three years). Well, what Monsanto is to corn, this stock is to rice. Of course, rice is one of most important foods in the world. This company’s earnings rose 75% last year. What caught my eye was that it’s planning to return $1 billion to shareholders this year through its share buyback program.

What to Do Now

Even the most conservative investor should be fully invested in our Blue Chip Growth stocks by early May. This will be after the Federal Reserve cuts interest rates for (in my opinion) the last time on April 30. 

When the third-quarter earnings season arrives, you can expect the S&P 500’s earnings to surge by over 30%. For the fourth quarter, earnings should be growing by 70%. So this is no time to be sitting on the sidelines while the easiest profits are made.

We have a lot to look forward as this year unfolds.  The average Blue Chip Growth stock has 38.8% sales growth and almost 100% earnings growth. Still, our average stock trades at barely 15.5 times this year’s earnings.  I expect wave after wave of positive earnings reports that will help our Blue Chip Growth stocks reassert themselves as market leaders. 

That’s all for this week. I’ll have the next issue of “What’s Working on Wall Street Now,” next Thursday, April 24.

Sincerely,

Louis Navellier

P.S. There’s over $3.5 trillion parked in cash right now. My hunch is that in the near future that money will find its way into the stock market. Don’t be left behind. Join us at Blue Chip Growth today!