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Louis Navellier, founder of Navellier & Associates, is also the editor of four investment newsletters and the author of a Business Week best seller. Navellier uses a system to grade stocks. In his stock picking formula, fundamentals and buying pressures are two main factors. According to his calculation, the “A” graded stocks returned 1267.9% in the past 13 years, versus 61% for SPY. Navellier has a focus on growth stocks. He believes that fast growing companies are healthy, thriving and well managed.

In this article, we are going to focus on Navellier’s stock picks with the highest upside potential. All companies have at least $10 billion market cap, analyst recommendation scores of lower than 2 (1=strong buy, 2=buy, 3=hold, 4=sell, 5=strong sell), and Navellier invested at least $10 million in these positions. The market data is sourced from Finviz.

Company Name

Ticker

Value

Activity

Analyst Recom

MCDONALDS CORP

MCD

54377

-3%

2

APPLE INC

AAPL

51182

-3%

1.7

COGNIZANT

CTSH

50420

-3%

1.8

T J X COMPANIES

TJX

42399

-3%

2

COCA COLA CO

KO

40714

8%

1.7

YUM BRANDS INC

YUM

38824

-2%

2

CHEVRON CORP NEW

CVX

35557

-3%

1.9

MASTERCARD INC

MA

35007

New

1.8

UNITEDHEALTH

UNH

33359

-1%

1.8

PIONEER NATURAL RES

PXD

25317

-3%

1.9

Among the stocks listed above, Apple Inc (NASDAQ:AAPL) and Coca Cola Co (NYSE:KO) have the highest upside potential. The average analyst recommendation scores for both stocks are 1.7. At the end of September, Navellier invested $51 million in AAPL and $41 million in KO. These two stocks are also very popular among hedge funds tracked by us. There are 125 hedge funds with AAPL positions in their portfolio and 44 hedge funds had KO in their portfolios. For example, Warren Buffett had over $13.5 billion invested in KO and Ken Griffin invested $928 million in AAPL at the end of the third quarter.

During the third quarter, Navellier initiated a brand new $35 million position in Mastercard Inc. (NYSE:MA). The stock has an average analyst recommendation score of 1.8 and it returned 19.29% since the end of September, versus 12.41% for SPY in the same period. Andreas Halvorsen also initiated a brand new $242 million position in MA during the third quarter.

The biggest position on the list above is McDonald's Corp. (NYSE:MCD), in which Navellier invested $54 million at the end of the third quarter. The average analyst recommendation score for MCD is 2.0. Since the end of September, MCD returned 14.90%, outperforming the market by over two percentage points. Billionaire Jim Simons is also bullish about MCD. At the end of the third quarter, his Renaissance Technologies invested $271 million in this stock.

Other stocks with high upside potential that Navellier is bullish about include Chevron Corp (NYSE:CVX), Unitedhealth Group Inc (NYSE:UNH), Pioneer Natural Resources Co (NYSE:PXD) and Cognizant Technology Solutions Corp (NASDAQ:CTSH). We like Navellier. He is not secretive about his investment ideas at all. His “The Little Book That Makes You Rich” helped many ordinary investors make their own investment decisions. We believe that by imitating the best stock picks of Navellier, investors are more likely to outperform the market in the long term.

Source: Louis Navellier's Stock Picks With The Highest Upside Potential