In this article, we discuss 5 Best Stocks to Buy in 2021 According to Louis Navellier. If you want to read our detailed analysis of Navellier‘s history and hedge fund performance, go directly to 10 Best Stocks to Buy in 2021 According to Louis Navellier.
5. Cummins Inc. (NYSE: CMI)
Navellier’s Stake Value: $2,493,000
Percentage of Louis Navellier’s 13F Portfolio: 0.44%
No. of Hedge Fund Holders: 37
Cummins Inc. (NYSE: CMI) deals with the manufacturing of natural gas and diesel engines, as well as hybrid and electric powertrains.
The company reported a $603 million net income in Q1 2021, equivalent to $4.07 per diluted share. It performed better than the Q1 2020 net income of $511 million, or $3.41 per diluted share. Cummins declared a healthy quarterly dividend of $1.35 per share. FY 2021 revenue guidance has been raised to 20-24% compared to estimates of 12.26%
Cummins Inc. (NYSE: CMI) is optimistic that the ongoing COVID19 vaccinations will help restore economic activity, including the demand for its products. Its EBITDA forecast for 2021 is between 15.5% to 16.0%.
In April, the stock was upgraded at Jefferies to “Buy” from “Hold” with a price target of $325.
4. Centene Corporation (NYSE: CNC)
Navellier’s Stake Value: $284,000
Percentage of Louis Navellier’s 13F Portfolio: 0.05%
No. of Hedge Fund Holders: 53
Centene Corporation (NYSE: CNC) is a healthcare company that offers services and programs to uninsured and underinsured people in the U.S. The company is currently acquiring Magellan Health and is expected to finalize the process within the second half of 2020. Centene agreed to acquire Magellan Health for $2.2 billion earlier this year.
Centene generated $29.98 billion revenue in Q1 2021, outpacing the consensus estimate by $470 million.
In its Q3 2020 investor letter, FPA Capital Fund highlighted a few stocks and Centene Corp (NYSE:CNC) is one of them. Here is what FPA Capital Fund said:
“CNC was the Fund’s 2 nd worst performer for the quarter. The company is a managed care organization (discussed in more detail in prior commentaries). The stock declined on election uncertainty and on the increased likelihood that the Supreme Court might strike down the Affordable Care Act due to the death of Supreme Court Justice Ginsburg. CNC does have the headline risk, but the stock is trading at 10x 2021 price to earnings multiple versus its long term historical average of 16x. 6 Its COVID-19 costs appear to be in line with expectations and the worst long term effect from a repeal of the Affordable Care Act is estimated to be a 10% hit to earnings. 7 We believe that any likely political scenarios would not cause a major longterm disruption to the company while its valuation appears to price in a much more dire scenario.”
3. Newmont Corporation (NYSE: NEM)
Navellier’s Stake Value: $2,870,000
Percentage of Louis Navellier’s 13F Portfolio: 0.51%
No. of Hedge Fund Holders: 43
Newmont Corporation (NYSE: NEM) is a mining company that explores gold, as well as other metals such as lead, zinc, silver, and copper.
The company earned $2.87 billion in revenue in Q1, which was 11.2% higher YoY, and outperformed the consensus estimate by $290 million. The stock was rated as “Overweight” at JPMorgan in February, while Bernstein rated it as “Outperform” setting the price target of $72 in January.
2. Nio Inc. (NYSE: NIO)
Navellier’s Stake Value: $2,539,000
Percentage of Louis Navellier’s 13F Portfolio: 0.45%
No. of Hedge Fund Holders: 28
Nio Inc. (NYSE: NIO) is a Chinese EV manufacturer currently planning to enter the U.S market. The company already has a robust lineup of electric vehicles, including ES8, ES6, and EC6. It also has the most compelling approach to charging, which involves setting up battery swap stations where NIO EV owners can have their batteries swapped in the same amount of time it would fuel an ICE vehicle. The company has already rolled out the subscription-based battery swap project in China.
The company reported that it sold 7,102 vehicles in April 2021, a 125% gain compared to its vehicle deliveries in April in the previous year. The Chinese EV manufacturer reported $1.22 billion in revenue in Q1, 481.8% higher YoY and more than the consensus estimate by $160 million.
Nio Inc. (NYSE: NIO) current Q2 2021 revenue forecast is between $1.24 billion and $1.29 billion. The company is currently receiving subsidies for its battery swapping approach. The company plans to set up battery swapping stations in Norway and other parts of Europe.
In April, CLSA’s Soobin Park initiated a coverage on Nio and rated the stock as “Buy,” setting the price target at $50.
1. Southern Copper Corporation (NYSE: SCCO)
Navellier’s Stake Value: $1,187,000
Percentage of Louis Navellier’s 13F Portfolio: 0.21%
No. of Hedge Fund Holders: 27
Southern Copper Corporation (NYSE: SCCO) is a mining company that deals with copper mining, smelting, and refining. It has operations in Chile, Ecuador, Argentina, Peru, and Mexico. Copper prices have been on the rise thanks to the ongoing economic recovery. This is helping Southern Copper.
The company reported its Q1 2021 earnings per share at $0.99, outperforming the $0.91 consensus estimate. Its adjusted EBITDA for the same quarterly period was $1.55 billion, twice the figure it reported in Q1 2020. Copper production dropped to 239.1K metric tons representing a 1.5% drop YoY in Q1.
In February, Citi’s Alexander Hacking upgraded the stock of Southern Copper Corporation (NYSE: SCCO) to “Neutral” from “Sell” and has set a price target of $70.
You can also take a peek at Billionaire Andreas Halvorsen’s Top Stock Picks and Billionaire Lee Ainslie’s Top 10 Stock Picks.
