We recently published a list of Louis Navellier’s 10 New Stock Picks. In this article, we are going to take a look at where Flowserve Corporation (NYSE:FLS) stands against other Louis Navellier’s new stock picks.
Navellier & Associates is an independent money management firm founded in 1987 by renowned growth analyst Louis Navellier. Based in Reno, Nevada, the firm has more than thirty years of experience serving both individual and institutional clients through a disciplined, style-consistent investment approach. The firm’s mission is to maximize returns while managing excessive risk, offering customized portfolio strategies that incorporate a proprietary blend of quantitative and fundamental analysis. Navellier’s investment philosophy centers around identifying and exploiting inefficiencies in the market to uncover high-potential growth stocks. Unlike market indexes and firms that mimic market indexes, Navellier & Associates focuses on outperforming them, resulting in portfolios with low correlation to benchmarks, increased diversification, and reduced risk.
At the heart of Navellier’s investment process is a rigorous three-step, bottom-up stock selection methodology. The first step involves applying a proprietary quantitative screening process to evaluate market and individual stock statistics, specifically measuring reward through alpha and risk through standard deviation. This process narrows the investment options to stocks that rank in the upper percentiles for their risk/reward metrics. In the second step, fundamental analysis is used to identify stocks with exceptional profit margins, robust earnings growth, and forward-looking, reasonable price-to-earnings ratios. Finally, a proprietary optimization model allocates stocks within the portfolio to maximize alpha while minimizing volatility, ensuring that each portfolio is well-diversified across multiple sectors and industries. These strategies are particularly well-suited for long-term investors seeking steady returns in both bull and bear markets.
Louis Navellier himself brings over three decades of expertise to the firm. Since 1980, he has published quantitative research on growth stocks and remains a leading voice in the investment community. As the Founder, Chairman, Chief Investment Officer, and Chief Compliance Officer of Navellier & Associates, he continues to oversee the same portfolios he helped launch. His investment insights have earned him frequent appearances on CNBC, Fox Business News, and regular quotes in leading financial outlets such as Bloomberg and MarketWatch. He has been featured in major publications like Forbes, Fortune, Barron’s, and The Wall Street Journal, and profiled in books such as Secrets of the Investment All-Stars and Investing Under Fire. Today, the firm manages over $1 billion in private and institutional accounts and remains a sought-after resource for high-net-worth individuals and institutions alike.
Navellier & Associates offers tailored portfolio reviews, designed to help clients make sound financial decisions aligned with their preferences, individual goals, and risk tolerance. These reviews include a comprehensive portfolio analysis, risk assessment, and personalized investment recommendations. Portfolios managed by Navellier range from $100,000 to over $100 million, and all recommendations are made on a person-by-person basis. This level of customization underscores the firm’s belief that every investor is unique and deserves a strategy that reflects their personal financial objectives.
In addition to its financial expertise, the Navellier team is composed of passionate professionals who share common interests and life goals with their clients. From hiking and skiing to golfing and parenting, the firm’s staff brings a personal touch to its services, fostering genuine connections with investors. Navellier & Associates is deeply committed to providing not only top-tier financial management but also exceptional client service, innovative investment tools, and cutting-edge market research. With a homegrown foundation and a global outlook, Navellier continues to help clients achieve long-term financial security through disciplined, adaptive, and data-driven investment strategies.
As of its most recent 13F filing for the fourth quarter of 2024, Navellier & Associates reported managing approximately $834 million in securities. The firm’s top ten holdings account for 29.42% of this portfolio, reflecting its concentrated yet carefully optimized investment strategy grounded in systematic analysis and decades of market experience.
Our Methodology
We searched through Navellier & Associates’ Q4 2024 13F filings to identify the new stock picks that the firm invested in during the fourth quarter of the year. From the resultant data, we ranked the equities based on the hedge fund’s stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A group of industrial workers in coveralls operating a large scale pump system in a factory.
Flowserve Corporation (NYSE:FLS)
Number of Hedge Fund Holders as of Q4: 60
Navellier & Associates’ Equity Stake: $2.21 Million
Flowserve Corporation (NYSE:FLS) is an American multinational company and one of the largest global suppliers of industrial and environmental machinery such as pumps, valves, mechanical seals, automation systems, and related services. The company serves the power, oil and gas, chemicals, and other process industries, offering machinery, equipment, and solutions that support industrial operations. With a market capitalization of $8.35 billion, Flowserve boasts a strong market position and operational resilience. As one of Louis Navellier’s new stock picks, the hedge fund currently owns 38,441 shares in Flowserve Corporation (NYSE:FLS), with a stake of $2.21 million.
For its most recent quarterly financial report for the period ending December 2024, Flowserve Corporation (NYSE:FLS) reported earnings of $0.70 per share, falling short of the consensus estimate of $0.77. Although it missed expectations by 9%, the Q4 2024 EPS reflects a modest increase from the $0.68 per share reported in the same quarter a year earlier. Flowserve missed expectations in the prior quarter too, posting earnings of $0.62 per share against a projected $0.67.
Revenue for the quarter stood at $1.18 billion, missing analysts’ estimates of $1.21 billion by 2.5%, yet higher than the $1.17 billion reported in the same quarter of the previous year. Over the last four quarters, Flowserve Corporation (NYSE:FLS) has surpassed consensus revenue estimates three times, reflecting a consistent top-line performance amid market challenges. The company maintains a healthy current ratio of 1.99, highlighting its solid liquidity position and effective financial management, which continue to support its operational capabilities and shareholder returns.
Flowserve Corporation (NYSE:FLS) recently announced significant changes to its board of directors and bylaws. According to a recent SEC filing, the company’s Corporate Governance and Nominating Committee accepted the resignation of director Carlyn R. Taylor. Following Taylor’s resignation, the board of directors approved an amendment to the company’s bylaws, reducing the number of directors from eleven to ten. Additionally, Flowserve Corporation (NYSE:FLS) reinforced its commitment to returning value to shareholders by declaring a quarterly cash dividend of $0.21 per share, reflecting the company’s focus on delivering consistent value to its investors.
Artisan Small Cap Fund stated the following regarding Flowserve Corporation (NYSE:FLS) in its Q4 2024 investor letter:
“During the quarter, we initiated new GardenSM positions in VSE, Flowserve Corporation (NYSE:FLS) and Integer Holdings. Flowserve is a leading provider of fluid motion and control products and services. The company designs, manufactures and services a wide range of pumps, valves, seals, automation solutions and related systems for industries that require the management and transfer of fluids. As we highlight in the Stewardship Update section later in this letter, we believe the company is in a good position to benefit from rising natural gas production that is being driven by rising baseload power needs for data centers. And within the oil end market, a loosening of regulatory policies could increase production demands.”
Overall, FLS ranks 10th on our list of Louis Navellier’s new stock picks. While we acknowledge the potential of FLS, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FLS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.