Navellier Growth: your source for market-beating growth stocks

 

Our Emerging Growth earnings are on fire! Last week, I told you to keep and eye out for CF Industries (CF) and I really hope that you did. I know I've been touting our agriculture plays recently, but for good reason! On Monday, the company reported that its earnings tripled from last quarter. CF reported a whopping $5.02 a share–that's a 40% earnings surprise! Unwavering demand for the company's fertilizer products pushed CF's income well over 200%. Shares jumped 5% on Tuesday and another 9% yesterday! What's more, CF expects strong sales to continue well into the spring of next year. This news further indicates that there is money to be made even in this rocky market. I'm happy to say that CF Industries, and companies like it, are what Emerging Growth is all about and we're set to profit straight through the second half of the year–no matter which way the market heads.

As I mentioned, it's not just CF Industries that's making money based on superior earnings right now. Another one of my top Emerging Growth stocks, Flowserve (FLS), released an earnings report yesterday that knocked the wind out of analysts! For last year's Q2, the company earned 98 cents a share and Wall Street expected $1.49 a share this time around. Those were some pretty high expectations. Nevertheless, oil services company Flowserve demolished the Street's expectations when it posted $1.97 per share–that's almost double last year and a 32% surprise! The company announced its sales were up over 24% compared to the second-quarter 2007 thanks to high demand for global energy equipment.

The icing on the cake: Flowserve dramatically raised its earnings guidance for 2008. FLS now expects full year 2008 earnings per share of $7.20 to $7.50, up from $5.90 to $6.20. Once again, Wall Street missed the mark with its estimated $6.31 EPS. FLS shares are up over 10% so far this week and I expect to see a lot of earnings upgrades very soon.

The lesson here is not to let the market get the better of you. There are companies out there that are moving full-steam ahead and are allowing investors to meet their financial goals in a very tough economic environment. In order to find these companies, though, you've got to have the right strategy. Let's talk a little more about what's working in this market and how you can claim your share of the profits to be made.

Other recent e-letter issues:
11.20.08: Automakers Left Empty-Handed
11.13.08: Four Tips for Buying Stocks in Bad Times
11.06.08: The Bull Market for Fundamentals
10.30.08: Why You Should Be Buying Right Now
10.23.08: How to Invest in a Volatile Market