Navellier: Rare Stock Signal Had 90% Historical Success

Louis Navellier, founder of Navellier & Associates, says a rare combination of technical and fundamental criteria in his firm’s models has shown about a 90% historical success rate at predicting relative stock performance in backtests.

Navellier described the indicator as an infrequent, stock-level trigger rather than a tool for timing the overall market. The screen combines recent price action with measures of earnings and revenue acceleration and only fires when multiple conditions align. The signal appears in a small percentage of the stocks the firm covers.

The finding comes from historical testing of the firm’s quantitative systems over multiple market cycles. Those tests compared outcomes for stocks that met the signal criteria against a control universe of stocks that did not. Navellier reported that the hit rate for predicting outperformance or underperformance approached 90% in those analyses.

Navellier’s team uses the signal as one input among several in research and portfolio decisions. The firm applies the screen primarily to refine stock selection and to identify names for concentrated, rules-based positions rather than to move large amounts of cash in and out of the market.

Navellier has managed growth-oriented strategies for decades with a focus on earnings momentum, revenue trends and price strength. The firm notes that historical backtest results do not guarantee future performance and that the rarity of the signal limits how often it can be applied.