Louis Navellier’s 2023 Portfolio: 15 Growth Stocks to Watch
In this article, we discuss 15 growth stocks to watch in Louis Navellier's 2023 portfolio. If you want to see more stocks in this selection, check out Louis Navellier's 2023 Portfolio: 5 Growth Stocks to Watch.
According to a report featured on Markets Insider in October 2022, Louis Navellier of Navellier & Associates said that the S&P 500 is on the verge of significant changes in the upcoming years, with energy stocks gaining increased attention from investors. Navellier predicted that this upward trend will persist, estimating that the energy sector may make up around 30% of the S&P 500 by 2025. This would mark a remarkable surge for an industry that has been overlooked by investors focused on environmental, social, and governance (ESG) factors in recent times. This shift would come at the cost of the technology sector, which, along with communication services, accounted for nearly half of the S&P 500 at its highest point during the pandemic. Navellier said:
"I predict that in early 2025, energy stocks will be 30% of the S&P 500 and technology stocks will fall to about only 32%. Tracking managers will be systematically buying energy stocks and a net seller of technology stocks as the sector weights in the S&P 500 change for at least the next couple of years."
In an interview with Fox Business on February 21, 2023, Navellier expressed agreement with the idea that the average consumer is facing challenges. He mentioned that the only retailer in his portfolio is Costco Wholesale Corporation (NASDAQ:COST), which he described as more of a luxury goods company that also sells gasoline in large quantities. Navellier pointed out that consumers are under pressure, citing The Home Depot, Inc. (NYSE:HD) and Walmart Inc. (NYSE:WMT) as examples of consumer-focused companies reporting gloomy financial results.
During the Fox interview, he commented on the inflated job numbers in January resulting from seasonal patterns and voiced his belief that the labor market will undergo a significant readjustment in the next five months, offering a more accurate and realistic perspective. Navellier also communicated uncertainty about the accuracy of both the job numbers and the sales report for the month of January, as he found discrepancies and believed the figures were significantly inflated. He observed that the combination of seasonal effects, treasury yields, and inflation data failed to provide a satisfactory explanation for the January figures. Nevertheless, he displayed a lack of concern regarding inflation, as his portfolio experienced strong performance primarily due to the presence of plentiful energy stocks.
Louis Navellier is recognized as a growth-oriented investor who specializes in identifying companies with robust growth potential. Some of the top growth stocks to watch in Navellier's portfolio include NVIDIA Corporation (NASDAQ:NVDA), Enphase Energy, Inc. (NASDAQ:ENPH), and Novo Nordisk A/S (NYSE:NVO).
Our Methodology
This list consists of growth stocks that Louis Navellier's Navellier & Associates held during the first quarter of 2023. By growth stocks we mean companies operating in growth-oriented industries such as tech, electric vehicles, fintech, ecommerce, biotech and healthcare, and renewable energy. The list is ranked in ascending order of dollar value of the hedge fund's stakes in these companies. We have also mentioned the hedge fund sentiment around the securities as of Q1 2023.
Louis Navellier of Navellier & Associates
Louis Navellier's 2023 Portfolio: Growth Stocks to Watch
15. Axcelis Technologies, Inc. (NASDAQ:ACLS)
Stake Value of Navellier & Associates: $2,389,039
Number of Hedge Fund Holders: 34
Axcelis Technologies, Inc. (NASDAQ:ACLS) is involved in the creation, production, and maintenance of ion implantation and additional processing machinery utilized in the manufacturing of semiconductor chips across the United States, Europe, and Asia Pacific. In Q1 2023, Louis Navellier's fund held 17,929 shares of Axcelis Technologies, Inc. (NASDAQ:ACLS) worth $2.38 million.
On May 3, Axcelis Technologies, Inc. (NASDAQ:ACLS) reported a Q1 GAAP EPS of $1.43 and a revenue of $254.02 million, topping Wall Street estimates by $0.18 and $14.13 million. Axcelis anticipates generating revenues in the range of $255 million to 260 million for the second quarter ending on June 30, 2023. This projection compares to the consensus estimate of $250.39 million.
According to Insider Monkey’s first quarter database, 34 hedge funds were long Axcelis Technologies, Inc. (NASDAQ:ACLS), compared to 24 funds in the prior quarter. Richard Driehaus’ Driehaus Capital is the largest position holder in the company, with 728,641 shares worth $97 million.
Like NVIDIA Corporation (NASDAQ:NVDA), Enphase Energy, Inc. (NASDAQ:ENPH), and Novo Nordisk A/S (NYSE:NVO), Axcelis Technologies, Inc. (NASDAQ:ACLS) is one of the top growth stocks to watch in Louis Navellier's 2023 portfolio.
14. Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Stake Value of Navellier & Associates: $2,641,665
Number of Hedge Fund Holders: 34
Booz Allen Hamilton Holding Corporation (NYSE:BAH) offers a wide range of services including management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services in the United States and internationally. In the first quarter of 2023, Navellier held 28,500 shares of Booz Allen Hamilton Holding Corporation (NYSE:BAH) worth $2.64 million. It is one of the top growth stocks in the Navellier portfolio.
After being awarded a contract by the IRS for Enterprise Development Operations Services, Booz Allen Hamilton Holding Corporation (NYSE:BAH) received an Overweight rating and a $116 price target from Morgan Stanley on May 5. The investment firm believes that based on the contract size, duration, and competition, this project could generate approximately $100 million in annual revenue, contributing to a growth of around 1% compared to Booz Allen Hamilton Holding Corporation (NYSE:BAH)’s current levels. Additionally, Morgan Stanley highlighted that this contract value might help safeguard some of Booz Allen's existing work with the IRS, which was previously at risk due to the TCloud outcome earlier in 2023.
According to Insider Monkey’s first quarter database, 34 hedge funds were long Booz Allen Hamilton Holding Corporation (NYSE:BAH), compared to 36 funds in the prior quarter. Woodline Partners is the biggest stakeholder of the company.
13. Fortinet, Inc. (NASDAQ:FTNT)
Stake Value of Navellier & Associates: $3,176,256
Number of Hedge Fund Holders: 45
Fortinet, Inc. (NASDAQ:FTNT) is a provider of cybersecurity and networking solutions worldwide. The company offers FortiGate hardware and software licenses, which encompass a wide range of security and networking capabilities such as firewall, intrusion prevention, anti-malware, virtual private network, application control, web filtering, anti-spam, and wide area network acceleration. In Q1 2023, Louis Navellier had 47,792 shares of Fortinet, Inc. (NASDAQ:FTNT) in his portfolio, worth $3.17 million and representing 0.66% of the total 13F securities.
On May 8, BofA upgraded Fortinet, Inc. (NASDAQ:FTNT) to Buy from Neutral with a price target of $75, up from $66. According to BofA, the company's strong fundamentals and consistent execution in a challenging environment justify a premium compared to its peers in the cybersecurity industry. The firm acknowledged the existence of backlog drawdowns but believes that Fortinet, Inc. (NASDAQ:FTNT)’s business momentum outweighs these concerns, as there is a robust underlying demand that reflects the significant value Fortinet provides to its customers.
According to Insider Monkey’s first quarter database, 45 hedge funds were long Fortinet, Inc. (NASDAQ:FTNT), compared to 47 funds in the prior quarter. Andreas Halvorsen’s Viking Global is the biggest stakeholder of the company.
Here is what ClearBridge SMID Cap Growth Strategy has to say about Fortinet, Inc. (NASDAQ:FTNT) in its Q3 2021 investor letter:
“Performance among our cohort of IT and Internet companies was mixed, with enterprise software makers thriving while more consumer-oriented stocks faced headwinds. Cyber security software maker Fortinet benefited from a heightened awareness of the need to protect against sophisticated attacks. We are attracted to the recurring revenue nature of these software companies that are increasingly delivering their products on a subscription basis through the cloud. Software business models also tend to avoid many of the inflationary issues facing companies with a physical product or service.”
12. Apple Inc. (NASDAQ:AAPL)
Stake Value of Navellier & Associates: $3,335,432
Number of Hedge Fund Holders: 131
Louis Navellier's 2023 portfolio had 20,227 shares of Apple Inc. (NASDAQ:AAPL), worth $3.3 million and representing 0.7% of the 13F securities. On May 4, Apple Inc. (NASDAQ:AAPL) announced an additional program to buy back up to $90 billion of its stock.
On May 22, Loop Capital downgraded Apple Inc. (NASDAQ:AAPL) to Hold from Buy with an unchanged price target of $180. Apple Inc. (NASDAQ:AAPL) has recently lowered its iPhone production and shipment forecasts for the second time in the past four weeks. The analyst suggests that Apple has reduced its June quarter builds and shipments by approximately 10%, in addition to the reduced guidance provided by the company on May 4. This reduction poses a significant downside risk to Apple's June quarter revenue, both in comparison to its own guidance and the estimates of the Street. Loop Capital also believes that Apple Inc. (NASDAQ:AAPL) has further decreased its estimated iPhone shipments for the June quarter by an additional 5 million units to reach a total of 35 million units.
According to Insider Monkey’s fourth quarter database, 131 hedge funds were long Apple Inc. (NASDAQ:AAPL), compared to 135 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 915.5 million shares worth $151 billion.
Alger Spectra Fund made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q1 2023 investor letter:
“Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications, computing, and services. Apple’s iOS operating system is the company’s unique intellectual property and competitive strength. This software drives particularly tight engagement with consumers and enterprises, which is fostering the growing purchase of high margin services like music, apps, and Apple Pay. While iPhone sales were down year-over-year (YoY). services revenues grew 7% YoY which was slightly above analyst estimates. Company earnings were also better-than-anticipated due to lower input costs, such as memory chips and cost control initiatives. Aside from production disruptions, negative sentiment had also weighed on shares as investors questioned how an economic slowdown would affect consumer demand for Apple products in 2023. However, management projected an acceleration in earnings for the fiscal first quarter, where they noted that iPhone and services growth should remain strong, along with encouraging impacts around product mix, lower input costs, and continued cost controls.”
11. Agilent Technologies, Inc. (NYSE:A)
Stake Value of Navellier & Associates: $3,781,662
Number of Hedge Fund Holders: 55
Agilent Technologies, Inc. (NYSE:A) offers specialized solutions for life sciences, diagnostics, and applied chemical markets worldwide. Its operations are divided into three main segments – Life Sciences and Applied Markets, Diagnostics and Genomics, and Agilent CrossLab. In Q1 2023, Louis Navaellier added Agilent Technologies, Inc. (NYSE:A) to his portfolio by purchasing 27,336 shares worth $3.78 million.
On May 23, Agilent Technologies, Inc. (NYSE:A) reported FQ2 non-GAAP EPS of $1.27 and a revenue of $1.72 billion, topping Wall Street estimates by $0.01 and $50 million, respectively.
Barclays analyst Luke Sergott initiated coverage of Agilent Technologies, Inc. (NYSE:A) with an Equal Weight rating and a $140 price target on May 11.
According to Insider Monkey’s first quarter database, 55 hedge funds were bullish on Agilent Technologies, Inc. (NYSE:A), compared to 48 funds in the prior quarter. William Von Mueffling’s Cantillon Capital Management is the biggest stakeholder of the company.
Cooper Investors made the following comment about Agilent Technologies, Inc. (NYSE:A) in its Q4 2022 investor letter:
“Agilent Technologies, Inc. (NYSE:A) finished a great year with +12% organic growth after a +15% year in 2021. As a supplier of liquid chromatography/ mass spectrometry instruments into the life sciences industry, Agilent enjoyed a period of supernormal growth over the 2020-2021 COVID pandemic. Like several of our healthcare and diagnostics investments Agilent de-rated quite sharply in the first half of 2022 as the market ‘faded’ the decline in COVID testing revenues. In our view this short term volatility obscures the high quality of Agilent’s business and long term growth opportunities. One example is environmental testing as mandated by the US EPA where US$4bn of funding in the infrastructure bill has been put aside for PFAS testing. As CEO Mike McMullen noted on the last call, ‘it’s the first time in my career we’ve seen this kind of government money coming in’.”
10. ExlService Holdings, Inc. (NASDAQ:EXLS)
Stake Value of Navellier & Associates: $3,959,171
Number of Hedge Fund Holders: 24
ExlService Holdings, Inc. (NASDAQ:EXLS) operates globally and specializes in data analytics, digital operations, and providing solutions to different industries. The company is divided into four segments – Insurance, Healthcare, Analytics, and Emerging Business. Securities filings for the first quarter of 2023 reveal that Louis Navellier's hedge fund owned 24,465 shares of ExlService Holdings, Inc. (NASDAQ:EXLS) worth $3.95 million, representing 0.83% of the total 13F securities. It is one of the top growth stocks to watch in Navellier’s portfolio.
On April 28, TD Cowen analyst Bryan Bergin raised the firm's price target on ExlService Holdings, Inc. (NASDAQ:EXLS) to $195 from $190 and kept an Outperform rating on the shares. The analyst noted that ExlService Holdings, Inc. (NASDAQ:EXLS) delivered impressive results in the first quarter, surpassing expectations in both Digital Operations and Analytics. The company's resilient value proposition and strong overall momentum have allowed it to overcome challenges in discretionary areas, the analyst wrote in a research note.
According to Insider Monkey’s first quarter database, 24 hedge funds were long ExlService Holdings, Inc. (NASDAQ:EXLS), and James Parsons’ Junto Capital Management held the largest stake in the company, comprising 138,123 shares worth $22.35 million.
Here is what Bernzott Capital US Small Cap Value Fund has to say about ExlService Holdings, Inc. (NASDAQ:EXLS) in its Q1 2022 investor letter:
“ExlService Holdings (NASDAQ:EXLS): After approximately four years of ownership, this provider of offshore business process outsourcing solutions was sold from the portfolio as it achieved fair value. During our period of ownership, the stock almost tripled in value and significantly outperformed the Russell 2000 Value index.”
9. Allegro MicroSystems, Inc. (NASDAQ:ALGM)
Stake Value of Navellier & Associates: $3,977,891
Number of Hedge Fund Holders: 25
Allegro MicroSystems, Inc. (NASDAQ:ALGM) specializes in the design, development, manufacturing, and marketing of integrated circuits (ICs). The company’s ICs are specifically designed for sensors and application-specific analog power systems, with a focus on motion control and energy-efficient applications. Allegro MicroSystems, Inc. (NASDAQ:ALGM) was a new arrival in Navellier & Associates’ Q1 2023 portfolio, with the hedge fund buying 82,890 shares valued at $3.97 million. It is one of the top growth stocks to watch in Louis Navellier's portfolio.
Following strong financial results in the March quarter, Mizuho analyst Vijay Rakesh increased the price target on Allegro MicroSystems, Inc. (NASDAQ:ALGM) to $50 from $48 and maintained a Buy rating on the shares on May 12.
According to Insider Monkey’s first quarter database, 25 hedge funds were bullish on Allegro MicroSystems, Inc. (NASDAQ:ALGM), compared to 15 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company.
Artisan Small Cap Fund made the following comment about Allegro MicroSystems, Inc. (NASDAQ:ALGM) in its Q1 2023 investor letter:
“Among our top contributors were Lattice Semiconductor, Monolithic Power Systems, Allegro MicroSystems, Inc. (NASDAQ:ALGM), HubSpot and Wingstop. A strong area of the portfolio was our semiconductor holdings as Lattice Semiconductor, Monolithic Power Systems and Allegro Microsystems each outperformed. This is an area of the market where we have historically found many compelling opportunities, and we believe it continues to be an attractive area for long-term capital. Our high-level thesis is that industry consolidation is driving profitability improvements which, combined with top-line demand growth drivers, are breeding many interesting profit cycles. Please read our latest semiconductor industry white paper to dive into our thoughts on the industry. After the strong performance in the quarter, we trimmed Lattice Semiconductor in order to manage the position size and also trimmed Monolithic Power Systems due to the company outgrowing our small-cap mandate.”
8. Eli Lilly and Company (NYSE:LLY)
Stake Value of Navellier & Associates: $4,475,106
Number of Hedge Fund Holders: 72
Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company engaged in the discovery, development, and marketing of pharmaceutical products. In Q1 2023, Louis Navellier owned 13,031 shares of Eli Lilly and Company (NYSE:LLY) worth $4.47 million, representing 0.94% of the 13F securities. It is one of the top growth stocks to watch in Navellier's portfolio.
On May 4, BMO Capital raised its price target on Eli Lilly and Company (NYSE:LLY) from $430 to $505 and maintained an Outperform rating on the shares. The firm is optimistic about the potential success of Eli Lilly and Company (NYSE:LLY)’s Donanemab in treating ALZ2, which positions it as a strong competitor to Biogen's Leqembi. This success is seen as an opportunity for investors to benefit from increased share value. BMO Capital has also revised its peak sales estimates for Donanemab, projecting sales of $17 billion, up from the previous estimate of $9.6 billion.
According to Insider Monkey’s first quarter database, 72 hedge funds were bullish on Eli Lilly and Company (NYSE:LLY), compared to 76 funds in the earlier quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with a position worth $1.02 billion.
Baron Health Care Fund made the following comment about Eli Lilly and Company (NYSE:LLY) in its Q1 2023 investor letter:
“In pharmaceuticals, our largest investment continues to be in Eli Lilly and Company (NYSE:LLY). Lilly’s new diabetes drug Mounjaro is likely to be approved for obesity in 2023. Lilly has two new obesity drugs advancing into Phase 3 trials. Lilly also has a drug in late-stage development for Alzheimer’s disease. Lilly is not facing any significant near-term patent expirations, and we think the company should be able to grow revenue and earnings at attractive rates through the end of the decade and beyond.”
7. Arista Networks, Inc. (NYSE:ANET)
Stake Value of Navellier & Associates: $4,672,887
Number of Hedge Fund Holders: 48
Arista Networks, Inc. (NYSE:ANET) specializes in the development, marketing, and sale of cloud networking solutions. Arista Networks, Inc. (NYSE:ANET)’s cloud networking solutions encompass flexible operating systems, a range of network applications, and advanced gigabit Ethernet switching and routing platforms. In Q1 2023, Louis Navellier's fund held 27,838 shares of Arista Networks, Inc. (NYSE:ANET) worth $4.6 million. It is one of the top growth stocks to invest in according to Navaellier.
On May 24, Argus analyst Jim Kelleher increased the price target on Arista Networks, Inc. (NYSE:ANET) from $175 to $195 while maintaining a Buy rating on the shares. Kelleher explained that although cloud titan spending is anticipated to decrease in 2023 after experiencing over 100% growth in 2022, Arista Networks, Inc. (NYSE:ANET) is expected to witness improvements in gross margin and operating margins throughout the year. The analyst highlighted that Arista Networks, Inc. (NYSE:ANET) has effectively managed the challenges posed by the supply-chain crisis and is successfully navigating through macroeconomic weaknesses, customer caution, cost inflation, and the digestion of cloud titan inventory. Furthermore, the company has been expanding its range of solutions and increasing its total addressable market, the analyst wrote in a research note.
According to Insider Monkey’s first quarter database, 48 hedge funds were bullish on Arista Networks, Inc. (NYSE:ANET), compared to 53 funds in the prior quarter. Steve Cohen’s Point72 Asset Management is the biggest stakeholder of the company.
Giverny Capital made the following comment about Arista Networks, Inc. (NYSE:ANET) in its Q1 2023 investor letter:
“Our holding Arista Networks, Inc. (NYSE:ANET) continues to generate extraordinary results, which the market recognizes. Arista rose 38% during the first quarter and became our largest holding. Arista makes switches, routers and operating software that power enormous data networks, such as for cloud computing. Microsoft’s Azure cloud business and Meta Platforms’ Facebook and Instagram networks are Arista’s two most important customers. Roughly speaking, Arista has tripled its revenue and profit over the past five years and seems poised to continue growing rapidly for the foreseeable future. Demand for hyperscale computing networks may accelerate as artificial intelligence (AI) chat applications grow. By some estimates, the computer power required to answer Al chat queries is roughly seven times more than for a Google or Bing search. I think the realization that data network capacity needs to be much larger to accommodate Al has driven recent enthusiasm for Arista.
In general, I think when a stock blows through my price target the right answer is to bask in the glory and maybe splurge on a latte rather than my usual morning coffee. Don’t get itchy about locking in a profit. In this case, Arista became our largest holding and roughly 8.5% of the portfolio, while also being one of the most expensive businesses we own on a price-to-earnings basis. Arista earned $4.27 in 2022 and I believe there is good reason to expect it to double EPS again, perhaps by 2026 or 2027. But as the stock traded into the $160s, that represents a PE of 20x estimated earnings in four years. While I believe strongly in Arista’s competitive position, I know that tech giants are facing budget constraints and a pause in their own intense pace of infrastructure growth would not surprise anyone….” (Click here to read the full text)
6. AbbVie Inc. (NYSE:ABBV)
Stake Value of Navellier & Associates: $4,717,671
Number of Hedge Fund Holders: 75
AbbVie Inc. (NYSE:ABBV) is a pharmaceutical company involved in the discovery, development, manufacturing, and sale of pharmaceutical products across the world. Securities filings for Q1 2023 reveal that Louis Navellier owned 29,602 shares of $4.7 million.
On April 28, Guggenheim maintained a Buy rating on AbbVie Inc. (NYSE:ABBV) but slightly lowered its price target on the shares from $172 to $171. Although AbbVie's Q1 results exceeded management guidance and aligned with the firm's estimates, the stock experienced an 8% decline primarily due to weaker performance in key growth drivers Skyrizi and Rinvoq, according to the firm. However, after analyzing management commentary during the conference call and conducting a follow-up call with the team, the firm expressed minimal concern and stated that no changes are being made to their short- or long-term estimates for either product.
According to Insider Monkey’s first quarter database, 75 hedge funds were long AbbVie Inc. (NYSE:ABBV), compared to 73 funds in the last quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company.
In addition to NVIDIA Corporation (NASDAQ:NVDA), Enphase Energy, Inc. (NASDAQ:ENPH), and Novo Nordisk A/S (NYSE:NVO), AbbVie Inc. (NYSE:ABBV) is one of the top growth stocks on Louis Navellier's radar.
Baron Health Care Fund made the following comment about AbbVie Inc. (NYSE:ABBV) in its Q1 2023 investor letter:
“In a difficult quarter during which the Health Care sector failed to participate in the broader market rally, Baron Health Care Fund modestly trailed the Benchmark by 42 basis points, as disappointing stock selection overshadowed favorable impacts from differences in sub-industry weights and cash exposure. Lower exposure to benchmark heavyweight AbbVie Inc. (NYSE:ABBV) and declines in Cytokinetics, Incorporated, Ascendis Pharma A/S, and Inhibrx, Inc. also weighed on performance in the sub-industry. We reduced our position in AbbVie Inc. due to our less optimistic view of the company’s pipeline and long-term growth profile.”
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Disclosure: None. Louis Navellier's 2023 Portfolio: 15 Growth Stocks to Watch is originally published on Insider Monkey.