All posts by PARKERYL

Updated on March 12th, 2025 by Nathan Parsh

When it comes to dividend growth stocks, not many can surpass the Dividend Aristocrats. The Dividend Aristocrats are a group of 69 stocks in the S&P 500 Index that have increased their dividends for 25+ consecutive years. These companies have increased their dividends every year without exception, even during recessions.

The Dividend Aristocrats have a proven ability to raise their dividends even during economic downturns. We have created a full list of all 69 Dividend Aristocrats, along with important metrics such as price-to-earnings ratios and dividend yields.

You can download an Excel spreadsheet with the full list of Dividend Aristocrats by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

In this article we are going to look more deeply at healthcare distributor Cardinal Health (CAH).

With 38 consecutive years of dividend increases, the company has clearly proven to be a reliable dividend growth stock, which speaks to the resilience of Cardinal Health’s business model.

Business Overview

Cardinal Health, founded in 1971, is one of the “Big 3” drug distribution companies, along with McKesson (MKC) and AmerisourceBergen (ABC). It serves over 24,000 United States pharmacies and more than 90% of the country’s hospitals.

The company has two operating segments: Pharmaceutical and Specialty Solutions and Global Medical Products and Distribution. The Pharmaceutical and Specialty Solutions segment is by far the largest, representing more than 90% of total revenue.

The Pharmaceutical and Specialty Solutions segment distributes branded and generic drugs and consumer products to hospitals and other healthcare providers.

Meanwhile, the Global Medical Products and Distribution segment distributes medical, surgical, and laboratory products to hospitals, surgery centers, clinical laboratories, and other service centers.

On January 30th, 2025, Cardinal Health released results for the second quarter of fiscal year 2025, which ended December 31st, 2024. Revenue declined 3.7% to $55.3 billion.

On an adjusted basis, the company’s posted earnings of $468 million, or $1.93 per share, compared favorably to earnings of $464 million, or $1.89 per share, in the prior year. Revenue results were $330 million ahead of estimates while adjusted earnings-per-share were $0.17 better than expected.

Source: Investor Presentation

For the quarter, Pharmaceutical and Specialty Solutions sales fell 4% to $50.8 billion, but segment profit grew 7% to $495 million. An expiring contract negatively impacted revenue. Excluding this, revenue was up 17% for the period as this segment continues to benefit from higher sales to existing customers and strength in brand and specialty pharmaceuticals.

Revenue for the Global Medical Products and Distribution segment of $3.2 billion was a 1% improvement year-over-year while segment profit of $18 million compared favorably to $11 million last year. Higher demand from existing customers led to an increase in volume for this segment.

Growth Prospects

Cardinal Health provided updated guidance for fiscal year 2025 as well.

Source: Investor Presentation

The company now expects adjusted earnings-per-share in a range of $7.85 to $8.00 for the fiscal year, up from $7.75 to $7.90 and $7.55 to $7.70 previously. At the midpoint, this would be a 5.3% improvement from the prior year.

Cardinal Health has grown earnings-per-share by an average compound rate of 6.2% and 7.8% over the last ten and five years, respectively. Since fiscal 2015, the dividend has grown at 4.0% annually, but this has slowed to 0.9% for the last five years. Moving forward, we anticipate slightly lower growth rates.

We are forecasting 5% intermediate-term earnings growth based on management’s guidance. Our subdued growth rate view could turn out to be conservative, especially given the company’s penchant for share repurchases. Cardinal Health has reduced its share count by more than 3% annually over the last decade. Dividends are projected to grow by just 1% annually through 2030.

Competitive Advantages & Recession Performance

Cardinal Health’s biggest competitive advantage is its distribution capability, which makes it very difficult for competitors to enter the market successfully.

Cardinal Health distributes its products to roughly 90% of U.S. hospitals. It serves more than 29,000 U.S. pharmacies and over 10,000 specialty physician offices and clinics. It also manufactures and distributes more than 50,000 types of Cardinal Health medical products and procedure kits. The company’s home healthcare business serves over 3.4 million patients, with over 46,000 products.

In addition, Cardinal Health operates in a stable industry with high demand. The company should remain steadily profitable, as pharmaceutical products will always be needed to be distributed.

Here’s a look at Cardinal Health’s earnings-per-share during the Great Recession:

• 2007 earnings-per-share of $3.41
• 2008 earnings-per-share of $3.80 (11.4% increase)
• 2009 earnings-per-share of $2.26 (40.5% decline)
• 2010 earnings-per-share of $2.22 (1.8% decline)

While part of this is recession-related, keep in mind that Cardinal Health’s financial results were materially impacted by its 2009 spinoff of CareFusion Corporation. Despite this spinoff, the company’s segment revenues, segment earnings, and dividends continued to grow.

Since people will always need their medications and healthcare products, regardless of the economic climate, Cardinal Health could be considered more recession-resistant than the average company.

Valuation & Expected Returns

Based on anticipated adjusted earnings-per-share of $7.93 for fiscal 2025, and a share price of ~$124, Cardinal Health is currently trading at a P/E ratio of 15.6.

The stock has traded hands with an average P/E ratio of 13.1 times earnings since 2015. In recognition of our lower anticipated growth rate, we have used a multiple of 11 times earnings as a starting place for fair value.

A declining P/E multiple could reduce annual returns by 6.8% per year over the next five years.

In addition to changes in the valuation multiple, future returns will be generated from earnings growth and dividends. We expect Cardinal Health to grow earnings-per-share by 5% per year, primarily from revenue growth and share repurchases.

Finally, the stock has a current dividend yield of 1.6%. While the pace of dividend growth has slowed, the starting yield is above the average yield for the S&P 500 Index. Again, we note the company’s track record of dividend growth.

As a Dividend Aristocrat, Cardinal Health will likely continue raising its dividend each year. Moreover, the dividend appears secure, with a projected dividend payout ratio of approximately 25% for fiscal 2025.

Putting all the pieces together – average growth and dividend yield offset by a meaningful valuation headwind – our expected total return for Cardinal Health is -0.4% per year over the next five years. The negative expected rate of return qualifies Cardinal Health stock as a sell right now.

Final Thoughts

Cardinal Health is a Dividend Aristocrat that has increased its dividend for nearly 40 years. Excluding an expiring contract, the company continues to grow revenue and segment profit improved in both businesses last quarter. Combined with share repurchases, the company should continue to see positive earnings-per-share growth going forward.

High-quality companies like Cardinal Health have withstood difficult periods and will do so again. The company’s history, its dividend history, and its current yield of 1.6% make the stock an interesting choice for income investors. However, total expected returns remain very low, making the stock a sell at the moment.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

The stock market is in disarray right now, to put it mildly.

This week, the S&P 500 and Nasdaq both temporarily lost their 200-day moving averages – a potential signal of a major market trend reversal. 

Driving this negative price action are fears that the current administration’s policy changes – including federal spending cuts, tariffs, deportations, and more – could plunge the U.S. economy into a recession. 

We understand and share those concerns. The odds of a recession and bear market are rising rapidly. Caution is warranted given these risks. 

But at the same time, we think the odds of an economic recovery and stock market rebound are far higher. And stocks could be preparing to bounce right now.  

These Stock Market Wounds Are Self-Inflicted

Just a few months ago, the economy was in great shape. 

Unemployment was low. Job growth was high. Consumer spending was resilient. Real wage growth was positive and strong. Inflation was turning lower. Interest rates were dropping. Consumer and business sentiment were improving, and corporate earnings were running higher. 

While most of those things remain true today, investors fear that President Trump’s policy changes will reverse a lot of those positive economic trends. 

But such reversals would be the result of self-inflicted wounds. And the thing about self-inflicted wounds is that usually, you can stop imposing them at any point. 

We can stop issuing tariffs and widespread federal spending cuts at any point. And it seems like the current administration is moving to gradually stop – or at least stall – some of these things. 

Trump has now twice delayed some tariffs on Mexico and Canada and granted exemptions to a variety of sectors, like the auto industry. He also said that future job cuts in the government will be done with a “scalpel” and not a “hatchet,” implying more strategic, smaller cuts. 

It seems the tide is turning at the White House. Radical change will become less radical. If that continues, it should ease Wall Street fears about a potential recession in the coming months. 

That’s why we believe the odds of an economic recovery here are far greater than the odds of a meltdown. 

But we also aren’t smarter than the market… so we will listen to its cues about where the economy and stocks could go. And based on our technical analysis, the market will offer a lot of information over the next two weeks… 

What to Watch: the Nasdaq 100

The bellwether index we’re watching closely right now is the Nasdaq 100. 

We view it as even more important than the S&P 500. That’s because it includes the world’s largest 100 tech companies. And since we live in a tech economy, those are the most important, most powerful companies in the world. 

This week, as we mentioned, the Nasdaq 100 closed below its 200-day moving average – for the first time in over a year, signaling a potential major market trend reversal. 

It has done the exact same thing precisely 11 times before since 1990. 

All 11 times, the stock market was either on the cusp of a big rebound or a big breakdown – and which way it went depended on how stocks acted in the subsequent two weeks. 

If the Nasdaq 100 played strong defense and stayed within 4% of its 200-day moving average over the subsequent two weeks, stocks always rebounded over the next 12 months, with average gains of over 25%. 

This happened in early 1992, early ‘96, late ‘97, early 2004, mid-2010, late 2014, and late 2018.

But the outcome isn’t always so bullish…

Updated on March 12th, 2025 by Nathan Parsh

Each year, we review all of the Dividend Aristocrats. Attaining membership to this group is difficult: companies must be of a certain size, belong to the S&P 500 Index, and (most importantly) have at least 25 consecutive years of dividend growth.

There are just 69 Dividend Aristocrats, proving the exclusivity of the list.

You can download an Excel spreadsheet of all 69 Dividend Aristocrats, including important financial metrics such as P/E ratios and dividend yields, by clicking the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

Albemarle Corporation (ALB) joined this exclusive list in 2020. The company is one of the most volatile names among the Dividend Aristocrats, but this makes its dividend growth streak even more impressive.

This article will review Albemarle’s investment prospects.

Business Overview

Albemarle is the largest producer of lithium and second-largest producer of bromine in the world. The two products account for the vast majority of annual sales. Albemarle produces lithium from its salt brine deposits in the U.S. and Chile.

The company has two joint ventures in Australia that also produce lithium. Albemarle’s Chile assets offer a very low-cost source of lithium. The company operates in nearly 100 countries.

Beginning January 1st, 2023, the company reorganized into the following segments: Energy Storage, Specialties, and Ketjen.

Albemarle produces annual sales above $5 billion.

Source: Investor Presentation

On February 12th, 2025, Albemarle announced fourth-quarter and full-year 2024 results. For the quarter, revenue declined 48% to $1.23 billion, which was $110 million less than expected. Adjusted earnings-per-share of -$1.09 compared very unfavorably to $1.85 in the prior year, which was $0.42 below estimates.

For the year, revenue declined 44% to $5.4 billion, while adjusted earnings-per-share were—$2.34 compared to $22.25 in 2023. It should be noted that the company had nearly $10 billion in sales in 2023, helping to illustrate that wide swings in the business can occur rapidly.

Lower lithium prices once again negatively impacted results. For the quarter, revenue for Energy Storage decreased 63.2% to $616.8 million. Volume declined 10%, while prices were down 53%.

Specialties revenues were lower by 2.0% to $332.9 million, as a 3% improvement in volume was offset by a price decrease. Ketjen sales of $245 million were down 17.4% from the prior year, as a slight price increase was more than offset by weakening volume.

Albemarle provided an outlook for 2025 as well, with the company expecting revenue in a range of $4.9 billion to $5.2 billion. The company is expected to produce earnings-per-share of -$0.80 in 2025. We believe that Albemarle has earnings power of $3.50.

Growth Prospects

Results are expected to be well above prior numbers, and Albemarle stands to benefit from the increased sales of electric vehicles, as the company’s lithium is used to provide the batteries.

Lithium is expected to be a growth segment over the next five years due to increasing demand for a wide range of applications, including electric vehicles and consumer electronics.

Source: Investor Presentation

Demand for energy storage tends to fluctuate, but the future looks promising for electric vehicles as more consumers consider making that purchase. By 2035, electric vehicles are projected to account for 26% of all cars on the road in the U.S. Battery size is also expected to grow.

With this growth will come a significant increase in demand for lithium.

Due to its leadership positions in lithium and bromine, we believe the company can grow earnings per share at a rate of 7.5% annually for the next five years.

Competitive Advantages & Recession Performance

Despite being among global leaders in multiple businesses, Albemarle isn’t content to rest on its previous success. The company has been active in acquiring businesses that strengthen its market share.

Albemarle is not a recession-proof company. Listed below are the company’s earnings-per-share during and after the last recession:

• 2007 earnings-per-share of $2.41
• 2008 earnings-per-share of $2.40 (0.4% decrease)
• 2009 earnings-per-share of $1.94 (19% increase)
• 2010 earnings-per-share of $3.51 (45% increase)

The specialty chemical business is heavily reliant on customer demand. Lower demand results in lower pricing, which negatively impacts Albemarle’s performance. The company is likely to face a similar type of slowdown during the next recession.

That said, the company has durable competitive advantages. A key competitive advantage is that it ranks as the largest producer of lithium in the world. The metal is used in batteries for electric cars, pharmaceuticals, airplanes, mining, and other applications.

Albemarle is also a top producer of Bromine, which is used in the electronics, construction, and automotive industries. The company possesses a size and scale that others cannot match.

Investors interested in investing in Albemarle should understand that ownership of the stock comes with risks due to the nature of its industry.

Valuation & Expected Returns

Using our expected earnings power figure of $3.50 for the year, ALB shares have a price-to-earnings ratio of 20.9. Over the last decade, Albemarle has traded with an average price-to-earnings ratio of 21.3.

Our multiple target is 18x earnings, which we feel takes into account the demand for the company’s materials and the high volatility of lithium prices. If the stock were to trade with this target by 2030, then valuation would be a 2.9% headwind to annual returns over this time period.

In addition, the dividend yield of 2.2% will add to shareholder returns. The dividend payout is well-covered, as the projected payout ratio for the year is just 46% of our earnings power estimate.

Given the nature of its business, the company has been successful at prudently managing its dividend. Albemarle has raised its dividend for 29 consecutive years.

Therefore, we project that Albemarle will provide a total annual return of 6.6% over the next five years, stemming from 7.5% earnings growth and a starting yield of 2.2% that are offset by a low single-digit headwind from multiple contraction.

Final Thoughts

Reaching Dividend Aristocrat status is no small feat. Albemarle is the dominant player in the lithium industry. The company benefits from low-cost mines and its leadership position in multiple categories.

Albemarle is far from recession-proof and has experienced some significant earnings declines over the last decade, but this makes the company’s dividend growth track record even more impressive.

While the company’s business can be unpredictable, we rate Albemarle’s shares as a hold.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Updated on March 12th, 2025 by Nathan Parsh

The Dividend Aristocrats are a group of stocks in the S&P 500 Index with 25+ years of consecutive dividend increases. These companies have high-quality business models that have stood the test of time and have shown a remarkable ability to raise dividends every year regardless of the economy.

We believe the Dividend Aristocrats are some of the highest-quality stocks to buy and hold for the long term. With that in mind, we created a full list of all 69 Dividend Aristocrats.

You can download the full Dividend Aristocrats list, along with important metrics like dividend yields and price-to-earnings ratios, by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

The list of Dividend Aristocrats is diversified across multiple sectors, including consumer goods, financials, industrials, and healthcare.

One group that is surprisingly underrepresented is the utility sector. Only three utility stocks, including Consolidated Edison (ED), are on the list of Dividend Aristocrats.

The fact that just three utilities are on the Dividend Aristocrats list may come as a surprise, especially since utilities are widely regarded as steady dividend stocks. The two other utilities on the list are Atmos Energy (ATO) and NextEra Energy (NEE).

Consolidated Edison is about as consistent a dividend stock as they come. The company has over 100+ years of steady dividends and more than 50 years of annual dividend increases. This article will discuss what makes Consolidated Edison appealing for income investors.

Business Overview

Consolidated Edison is a large-cap utility stock. The company generates approximately $15 billion in annual revenue. The company serves over 3 million electric customers, and another 1 million gas customers, in New York.

It operates electric, gas, and steam transmission businesses.

Source: Investor Presentation

On January 16th, 2025, Consolidated Edison announced that it was raising its quarterly dividend 2.4% to $0.85. This was the company’s 51st annual increase, qualifying Consolidated Edison as a Dividend King.

On February 20th, 2025, Consolidated Edison announced its fourth-quarter and full-year results. Revenue increased 6.5% to $3.7 billion, beating estimates by $36 million.

Adjusted earnings of $340 million, or $0.98 per share, compared to adjusted earnings of $346 million, or $1.00 per share, in the previous year. Adjusted earnings-per-share were $0.02 ahead of expectations.

For the year, revenue of $15.3 billion improved 4% year-over-year. Adjusted earnings of $1.87 billion, or $5.40 per share, compared to adjusted earnings of $1.76 billion, or $5.07 per share, in 2023.

As with prior quarters, higher rate bases for gas and electric customers were the primary contributors to results in the CECONY business, which is accounts for the vast majority of the company’s assets. Average rate base balances are expected to grow by 8.2% annually through 2029 off of 2025 levels. This is up from the company’s prior forecast for growth of 6.4%.

Consolidated Edison is expected to produce earnings-per-share of $5.63 in 2025. The company expects 5% to 7% earnings growth from 2025 through 2029.

Growth Prospects

Earnings growth across the utility industry typically mimics GDP growth, plus a couple of points. Over the next five years, we expect Consolidated Edison to increase earnings-per-share by more than 6% per year, which is in line with the company’s guidance.

New customers and rate increases are Consolidated Edison’s growth drivers. ConEd forecasts 8.2% annual rate base growth through 2029.

Source: Investor Presentation

One potential threat to future growth is high interest rates, which could increase the cost of capital for companies that utilize debt, such as utilities. Fortunately, the market isn’t expecting the Federal Reserve to raise interest rates any further, with the added potential for rate cuts in the future that would lower the company’s cost of capital. Lowering rates helps companies that rely heavily on debt financing, such as utilities.

Consolidated Edison is in strong financial condition. It has an investment-grade credit rating of A-, and a modest capital structure with balanced debt maturities over the next several years.

Competitive Advantages & Recession Performance

Consolidated Edison’s main competitive advantage is the high regulatory hurdles of the utility industry. Electricity and gas services are necessary and vital to society.

As a result, the industry is highly regulated, making it virtually impossible for a new competitor to enter the market. This provides a wide moat for Consolidated Edison.

In addition, the utility business model is highly recession-resistant. While many companies experienced significant earnings declines in 2008 and 2009, Consolidated Edison held up relatively well. Earnings-per-share during the Great Recession are shown below:

• 2007 earnings-per-share of $3.48
• 2008 earnings-per-share of $3.36 (3% decline)
• 2009 earnings-per-share of $3.14 (7% decline)
• 2010 earnings-per-share of $3.47 (11% increase)

Consolidated Edison’s earnings fell in 2008 and 2009, but recovered in 2010. The company still generated healthy profits, even during the worst of the economic downturn. This resilience allowed Consolidated Edison to continue increasing its dividend each year.

The same pattern held up in 2020 when the U.S. economy entered a recession due to the coronavirus pandemic. Last year, ConEd remained highly profitable, which allowed the company to raise its dividend again.

Valuation & Expected Returns

Using the current share price of ~$102 and EPS estimates for 2025, the stock has a price-to-earnings ratio of 18.1. This is just ahead of our fair value estimate of 18.0, which is in line with the 10-year average price-to-earnings ratio for the stock.

As a result, Consolidated Edison shares appear to be slightly overvalued. If the stock valuation retraces to the fair value estimate, the corresponding multiple contractions would reduce annualized returns by 0.1% over the next five years.

Fortunately, the stock could still provide positive returns to shareholders, through earnings growth and dividends. We expect the company to grow earnings by 6% per year over the next five years. In addition, the stock has a current dividend yield of 3.3%.

Utilities like ConEd are prized for their stable dividends and safe payouts. The company’s expected payout ratio for 2025 is 60%, below the 10-year average payout ratio of 67%.

Putting it all together, Consolidated Edison’s total expected returns could look like the following:

• 6% earnings growth
• -0.1% multiple reversion
• 3.3% dividend yield

Consolidated Edison is expected to return 8.6% annually over the next five years. This is a modest rate of return, but not high enough to warrant a buy recommendation at this time.

Income investors may find the yield attractive, as it is meaningfully higher than the yield of the S&P 500 Index.

Final Thoughts

Consolidated Edison can be a valuable holding for income investors, such as retirees, due to its 3%+ dividend yield. The stock offers secure dividend income, and is also a Dividend Aristocrat, meaning it should raise its dividend each year.

Overall, with expected returns of 8.6%, we rate the stock as a hold at today’s current price.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Inflation in February is softer than forecasted… the latest on the trade war… last call for Louis Navellier’s event tomorrow… growing opportunities in this selloff

This morning, rattled investors finally received good news when February’s Consumer Price Index (CPI) came in below expectations.

Prices rose 0.2% on the month, putting the year-over-year rate at 2.8%. Dow Jones economists had forecasted 0.3% monthly and 2.9% yearly growth.

Core inflation, which strips out volatile food and energy prices, also came in soft. The monthly figure rose 0.2%, putting the yearly climb at 3.1%. This was below forecasts of 0.3% and 3.2%, respectively.

Digging into the details, shelter costs remain the biggest driver of inflation. They jumped 0.3% in January, responsible for about half of the monthly CPI increase (remember, “shelter” is more than one-third of the total CPI).

Wall Street is breathing a sigh of relief. The growing fear of late has been “stagflation,” but this morning’s numbers ease those concerns.

However, the data don’t include much of what’s happened in recent weeks with tariffs – not to mention whatever tariffs are on the way. So, while we’ll take this morning’s win, we remain cautious.

Speaking of tariffs and “whatever tariffs are on the way”…

As reported in Tuesday’s Digest, yesterday, President Trump ordered tariffs on Canadian steel and aluminum to be increased another 25%, taking the full duty to 50%.

Per Trump, this was retaliatory in response to Ontario placing a 25% tariff on electricity coming into the United States.

But after Ontario Premier Doug Ford had “productive” talks with U.S. Commerce Secretary Howard Lutnick yesterday afternoon, Ford backed down on the 25% surcharge. In response, Trump removed his ordered 25% tariff increase.

The tariff relief was short-lived…

While electricity tariffs are off the table for the moment, this morning, we learned that Canada will impose a 25% tariff on more than $20 billion worth of U.S. goods.

Here’s CNBC:

The new tariffs cover steel and aluminum, as well as other U.S. goods including computers, sports equipment and cast iron products, Canadian Finance Minister Dominic LeBlanc said at a press conference.

They will take effect Thursday, LeBlanc said.

The new Canadian duties are on top of the 25% counter-tariffs that Ottawa slapped on $30 billion worth of U.S. goods on March 4, in response to President Donald Trump’s imposition of broad-based tariffs on Canadian imports.

Meanwhile, the European Union (EU) is getting in on the tariff action.

From The Wall Street Journal:

The EU said it plans 50% tariffs on imports of American whiskey, motorcycles and motorboats starting April 1, hitting some of America’s best-known products including Kentucky bourbon and Harley-Davidson motorcycles…

A second set of EU levies is due to take effect in mid-April.

An initial list of goods ranges from American chewing gum to poultry, beef, white chocolate, soybeans, carpets and watermelons…

The bloc’s tariffs will also target U.S. steel and aluminum products. 

And so, the trade war continues…

Switching gears, it’s last call for tomorrow’s “The Next 50X NVIDIA Call” from legendary investor Louis Navellier

Candidly, Louis’ event could be a significant moneymaker for you.

I’ll provide the entire backstory momentarily, but here’s my quick logic…

History shows that partnerships with AI-chip giant Nvidia (NVDA) can be incredibly lucrative for investors who own the smaller stock that partners with NVIDIA.

Sometimes, the gains are nice but not life-changing.

For example, autonomous driving software company Aurora Innovation (AUR) jumped 35% immediately after announcing its partnership with Nvidia.

(Disclosure: I own AUR.)

Other times, the partnerships result in what I’ll call “great vacation” returns.

For example, Nvidia’s investment in Applied Digital (APLD) led to a 100%+ increase. And after SoundHound AI (SOUN) partnered with Nvidia, its stock price nearly tripled.

But on certain occasions, the partnerships produce life-changing wealth.

Quanta Services (PWR) surged 1,000% following its Nvidia deal. And Super Micro Computer (SMCI) shot up 2,460% after the two companies got into bed.

Bottom line: A partnership with NVIDIA can be a big deal.

With that context, here’s Louis:

I’ve found a stock that could be next in line.

It’s a tiny company that already has contracts with Nvidia, Amazon (AMZN), Microsoft (MSFT), and even NASA…

If Nvidia makes a major announcement at Q-Day, this company will play a key role – and it could see explosive gains as a result.

In fact, it could create a 50X profit opportunity.

If so, that would turn a $10,000 investment into a $500,000 windfall.

Backing up to fill in the details…

If you’re new to the Digest, one week from tomorrow, Nvidia will hold the first ever “Quantum Day” at their annual AI Conference, or what Louis is calling “Q-Day.”

It’s going to bring together industry leaders, developers, and partners to explore the future of quantum computing.

To make sure we’re all on the same page, quantum computing is a gargantuan technological step forward where we’ll leverage the principles of quantum mechanics to process information exponentially faster than classical computers.

Quantum computers will be millions of times faster than the most advanced supercomputers that our scientists and government use today.

As highlighted earlier, Louis believes that Nvidia will announce a big move into quantum computing one week from tomorrow. If so, (and especially if we get word of the partnership that Louis anticipates), then this small-cap stock is going to move.

The question is simply: “How much?”

Louis just put 50X on the table. But for more details on that forecast, as well as a deeper dive into quantum computing, Nvidia, and this potential partnership, join Louis tomorrow at 1 p.m. Eastern.

This is your last chance to be a part of the event. For a one-click instant registration, click here and we’ll get you the attendance details.

Here’s Louis with our final word on the topic today:

My prediction is that Nvidia will figure out a way to marry AI with quantum computing in a way no one has ever done before. We’re talking about the possibility of a new technological breakthrough that could affect industries worth a combined $46 trillion.

But if you really want to make big gains, you have to start looking at the “pure play” quantum companies that Nvidia and other Big Tech companies are partnering with.

Here’s the thing – Wall Street hasn’t caught on yet [to this potential partnership Louis believes is coming].

So, I’m telling folks about it before Nvidia’s Q-Day on March 20.

My goal for this briefing is to get you AHEAD of the crowd… AHEAD of the news outlets…

You can reserve your spot instantly by clicking here.

Shifting gears, amid the recent selling pressure, remember to look for opportunities

From investor, philanthropist, and former U.S. Ambassador to Switzerland Shelby Cullom Davis:

You make most of your money in a bear market, you just don’t realize it at the time.

Though we’re not in a bear market, it’s felt that way recently.

How you handle such an environment is what separates everyday investors from opportunistic investors. And right now, we’re seeing growing opportunities.

For example, yesterday brought this headline from CNBC:

Microsoft is open to using natural gas to power AI data centers to keep up with demand

Natural gas has been on Louis’ radar for months. He’s been zeroing in on how it will power the explosion of AI data centers we’ll see this decade:

Trump 2.0 will slash regulations and dismantle roadblocks to development on an unprecedented scale.

Once that happens, expect to see a massive buildout of data centers, electrical infrastructure, nuclear facilities, natural gas plants and whatever else Big Tech needs to fast-track the AI Boom…

And investors who stay focused on fundamentals – like accelerating earnings and sales growth – and don’t get distracted or react to every headline, will prosper.

Natural gas has been roaring recently, despite this market correction.

For example, the U.S. Natural Gas Fund (UNG), is up almost 30% in 2025 while the S&P 500 has lost nearly 6%.

And many top-tier natural gas plays are up on the year while the S&P has fallen into the red.

This recalls the essay from InvestorPlace’s CEO Brian Hunt that we shared yesterday. In it, Brian urged readers to refocus on what matters during times of heightened market turbulence.

Read the excerpt below through the lens of the recent market selloff occurring at the same time that billions of dollars are flowing toward AI – and select natural gas plays that will power it:

When the stock market goes through a big drop and your portfolio’s value is going lower and lower, it can be difficult to know what to do.

It’s an emotional time and mistakes are common when we are feeling pressure…

During stock market corrections, I ask you to focus on what really matters: progress, transformational industry trends, creating value for others, and innovation.

Our recent stock market pullback is irrelevant when it comes to AI technological advancements… how we’ll power that technology… and the eventual return potential of top-tier stocks at the forefront of this trend.

Actually, that’s not true.

Today’s correction is relevant in that it’s making entry prices lower.

Now, it’s important to be clear…

I’m not saying everything in the market is a “Buy” today. But I am saying that this degree of selloff deserves our attention.

Rather than anxiously sticking our heads in the sand, let’s actively look for buying opportunities

Market analyst Cullen Roche has a great, related quote:

The stock market is the only market where things go on sale and all the customers run out of the store.

Some strong stocks are selling for prices that I suspect we’d love to have taken advantage of some months/years from now when looking in the rearview mirror.

It’s a good time to recall Warren Buffett’s advice in his 2017 letter to shareholders.

Buffett wrote that “there is simply no telling how far stocks can fall in a short period,” but if the market should keep falling, then investors should “heed these lines.” He then quoted Rudyard Kipling’s poem “If”:

If you can keep your head when all about you are losing theirs… If you can wait and not be tired by waiting… If you can think — and not make thoughts your aim… If you can trust yourself when all men doubt you… Yours is the Earth and everything that’s in it.

Good to remember.

Final reminder – we’re less than 24 hours from Louis’ event tomorrow. Click here to instantly save your spot.

Have a good evening,

Jeff Remsburg

Written by Steven Dooley, Head of Market Insights, and Shier Lee Lim, Lead FX and Macro Strategist

Markets pause selling as US inflation cools

Global markets calmed overnight after a month-long sell-off saw the benchmark US S&P 500 fall more than 10% from recent highs – one definition of a correction – with US tech stocks falling even further.

Markets were helped higher overnight by a lower-than-expected US inflation reading.

Headline annual inflation fell from 3.0% in January to 2.8% in February while the core measure dropped from 3.3% to 3.1%. A jump in inflation in the January report had spooked markets last month.

The US’s S&P 500 climbed 0.5% overnight while the tech-focused Nasdaq gained 1.2%. European stocks also gained.

The US dollar had recently fallen in line with US stockmarket weakness as markets worried about the potential for a US economic slowdown.

Overnight, however, the greenback gained, with the USD index climbing from four-month lows. There remains the potential for a broader reversal higher as momentum indicators, like the relative strength index, signal the recent move lower in the greenback is stretched. 

The Australian outperformed in line with gains in equity markets. The AUD/USD climbed 0.5% but remains within the trading range between 0.6200 and 0.6400.

The USD/SGD and USD/CNH both climbed from lows in line with US dollar strength,

Euro slips ahead of industrial production

The euro was mostly weaker overnight as it retraced some of last week’s record-breaking gains.

Today, the industrial production in the Euro region will be announced at 21:00 AEDT.

We forecast that in January, industrial production in the euro region will decrease by 0.1% month over month.

For now, the EUR/USD maintains its positive trend despite weak Eurozone industrial production, as the pair remains supported above the critical 1.05–1.06 level.

Market focus now shifts to resistance near the 1.1276 July 2023 peak, with momentum favouring further upside.

However, weaker European economic data could spark near-term volatility.

Last week, the EUR outperformed notably thanks to fiscal optimism on German military spending would boost demand. 

For EUR/SGD, next strong key weekly resistance at 200-day EMA of 1.4654 — the best level for EUR sellers since July 2022. 

Kiwi pressured as credit card spending falls

The NZD/USD gained 0.2% yesterday but underperformed versus the Australian dollar.

New Zealand’s February credit card sales reported yesterday, dropping 4.2% year over year, due to a weak economy and a decline in foreign travel.

Core retail sales, which do not include vehicle and gasoline, decreased 3.1%.  According to Retail NZ, foreign travel typically peaks in February, and with arrivals at around 80% of pre-COVID levels, brick and mortar stores are suffering from the decreased foot traffic. 

NZD/USD is trading within the 30-day tight trading range between 0.56 and 0.58, as declining domestic retail sales weigh on the kiwi.

The pair remains sensitive to external factors, with risk sentiment playing a pivotal role.

Sustained weakness in New Zealand’s domestic economy could increase downside pressure.

Any move above the recent trading range in NZD/USD could test the daily 200-day EMA resistance of 0.5870.

Greenback climbs from four-month lows

Table: seven-day rolling currency trends and trading ranges  

Key global risk events

Calendar: 10 – 15 March  

All times AEDT

Have a question? [email protected]

*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

Published on March 12th, 2025 by Bob Ciura

The goal of rational investors is to maximize total return under a given set of constraints.

Most investors are seeking outperformance when buying stocks. One of the most popular measures of investment outperformance is alpha.

Put simply, alpha is a financial metric that compares the performance of a given investment, with a suitable index for that investment.

We created a list of 100 high alpha stocks that have outperformed the S&P 500 Index.

You can download a spreadsheet of the 100 high alpha stocks (along with important financial metrics like price-to-earnings ratios and dividend yields) by clicking on the link below below:

 

This article will explain alpha in greater detail, illustrate the concept with an example, and list the top 10 high alpha stocks in the Sure Analysis Research Database right now.

Table of Contents

You can use the links below to instantly jump to an individual section of the article:

What Is Alpha?

As previously mentioned, Alpha compares the performance of a given investment, with a suitable index for that investment.

In most cases, the index utilized for comparison is the S&P 500 Index, arguably the most well-known stock market index in the world.

If a stock has an alpha value of 1.0, it means the security in question outperformed the chosen index by 1% over whatever time frame is used for comparison.

By contrast, a negative alpha means the stock underperformed the index.

For example, an alpha of -1 means the stock underperformed the index by 1% per year over the specified time period.

Alpha is one of several performance measures that are commonly used to evaluate an investment security or portfolio. Another common performance measure is Beta, which measures a stock’s volatility compared with an index.

Related: Low Beta Stocks List

Alpha and beta are both used to calculate the capital asset pricing model, otherwise known as CAPM, which calculates the required return of an investment to compensate for the level of risk involved.

Expected returns are also important for valuation analysis. The formula for expected total return of a stock is below:

Expected total return = change in earnings-per-share x change in the price-to-earnings ratio

With this, investors can calculate alpha as follows:

The variables are defined as:

• R = Portfolio return
• Rf = Risk-free rate
• βi = Beta of the investment
• Rm = Expected return of market

Additionally, subtracting the risk free rate from the expected return of the market is also known as the market risk premium.

Our analysis uses a 4.3% risk free rate (current 10-year Treasury rate) and a 5.5% market risk premium.

To illustrate, assume a portfolio generated a total return of 20% in a given time period, with a Beta value of 1.1. In this scenario, alpha would be calculated as follows:

• Alpha = (0.20-0.043) – 1.1(0.055)
  =.0965 or 9.65%

Therefore, the alpha in this example would be 9.65%.

The Top 10 High Alpha Stocks

The following 10 stocks have the highest alpha in the Sure Analysis Research Database. Stocks are listed by alpha value, from lowest to highest.

High Alpha Stock #10: Autoliv Inc. (ALV)

Autoliv is a global manufacturer of airbags, seatbelts, and steering wheels for automobile manufacturers all over the globe. The company is the industry leader in a critical and growing segment of the automobile manufacturing process.

Autoliv posted fourth quarter and full-year earnings on January 31st, 2025, and results were mixed. The company saw adjusted earnings-per-share of $3.05, which was 16 cents per share ahead of expectations. Revenue was off 5% year-over-year to $2.62 billion, missing estimates by $90 million.

The company noted a record high for operating profit, operating margin, and earnings despite the fact that sales declined 5% year-over-year due to currency translation and sales mix.

Adjusted operating margin was 13.4% of revenue, which was aided by strict cost controls and labor productivity gains. Headcount declined 9% year-over-year on fewer direct production personnel. Gross margin was 21% of revenue, up 180 basis points year-over-year.

The company has $480 million remaining on its share repurchase program heading into 2025. In Q4, $102 million was spent on repurchases.

Click here to download our most recent Sure Analysis report on ALV (preview of page 1 of 3 shown below):

High Alpha Stock #9: Carters Inc. (CRI)

Carter’s, Inc. is the largest branded retailer of apparel exclusively for babies and young children in North America. It was founded in 1865 by William Carter. The company owns the Carter’s and OshKosh B’gosh brands, two of the most known brands in the children’s apparel space.

Carter’s acquired competitor OshKosh B’gosh for $312 million in 2005. Now, these brands are sold in leading department stores, national chains, and specialty retailers domestically and internationally.

On October 26th, 2024, the company reported third-quarter results for Fiscal Year (FY)2024. The company reported a decline in third-quarter fiscal 2024 results, with net sales down 4.2% to $758 million compared to the previous year’s $792 million.

Source: Investor Presentation

The company’s operating margin decreased to 10.2% from 11.8%, attributed to higher investments in pricing and marketing, despite a lower cost of goods.

Earnings per diluted share (EPS) dropped to $1.62 from $1.78, reflecting softer demand in key segments.

Click here to download our most recent Sure Analysis report on CRI (preview of page 1 of 3 shown below):

High Alpha Stock #8: Virtus Investment Partners Inc. (VRTS)

Virtus Investment Partners, Inc. is a distinctive partnership of boutique investment managers, singularly committed to the long-term success of individual and institutional investors.

The firm offers a diverse range of investment strategies across asset classes, including equity, fixed income, multi-asset, as well as alternative investments.

These strategies are available in multiple product forms, such as open-end mutual funds, closed-end funds, ETFs, retail separate accounts, and institutional accounts.

Virtus operates through a multi-manager model, partnering with affiliated managers and select unaffiliated sub-advisers, each maintaining distinct investment philosophies and processes.

This structure allows Virtus to offer clients access to specialized expertise and a broad array of solutions tailored to meet various financial objectives.

On January 31st, 2025, Virtus reported its Q4 and full-year results for the period ending December 31st, 2024. Total AUM fell by 5% sequentially to $175.0 billion due to net outflows in institutional accounts and U.S. retail funds, and negative market performance, partially offset by inflows in ETFs, global funds, and retail separate accounts.

Net outflows of ($4.8) billion worsened from ($1.7) billion in Q3, primarily due to a $3.3 billion lower-fee partial redemption of an institutional mandate.

However, adjusted EPS rose 8% to $7.50, driven by higher investment management fees and a soft increase in operating expenses. For FY2025, we expect adjusted EPS of $26.81.

Click here to download our most recent Sure Analysis report on VRTS (preview of page 1 of 3 shown below):

High Alpha Stock #7: Shoe Carnival Inc. (SCVL)

Shoe Carnival, Inc. is a leading U.S.-based retailer specializing in family footwear and accessories. The company operates a large network of stores, offering a wide variety of athletic, casual, and dress shoes for men, women, and children.

With over 400 stores across the U.S. under the Shoe Carnival, Shoe Station, and Rogan’s Shoes brands, the company has steadily expanded its market presence.

In addition to its brick-and mortar locations, Shoe Carnival has a growing e-commerce platform, supporting its omnichannel strategy.

On November 21st, 2024, Shoe Carnival reported third quarter Fiscal 2024 results. The company reported GAAP EPS of $0.70 and Adjusted EPS of $0.71, meeting expectations.

While third-quarter net sales fell to $306.9 million from $319.9 million in 2023 due to a retail calendar shift, adjusted figures showed a 2.2% year-over-year increase.

Year-to-date, net sales rose 4.9%, with strong Back-to-School sales and contributions from the Rogan’s Shoes acquisition driving performance.

Click here to download our most recent Sure Analysis report on SCVL (preview of page 1 of 3 shown below):

High Alpha Stock #6: Hyster Yale Inc. (HY)

Hyster-Yale Materials Handling operates in the materials handling industry. The company designs, manufactures, and sells a comprehensive range of lift trucks and aftermarket parts, serving diverse customers across various sectors, including manufacturing, warehousing, and logistics.

HY maintains a strong competitive position with a significant market share due to its reputable brands, Hyster and Yale. The company segments its revenue primarily into three categories: new equipment sales, parts sales, and service revenues. In 2023, HY reported robust financials, demonstrating consistent growth and a diversified revenue stream.

On November 5th, 2024, the company announced results for the third quarter of 2024. The company reported Q3 non GAAP EPS of $0.97, missing estimates by $1.00 and produced revenue of $1.02 billion, which was up 2.0% year-over year.

The company generated $70 million in operating cash flow but faced a 44% decline in operating profit, reaching $33.1 million, as ongoing cost pressures and lower volumes in EMEA and JAPIC weighed on margins. Net income dropped to $17.2 million from $35.8 million in Q3 2023, while diluted EPS fell 53% to $0.97.

Click here to download our most recent Sure Analysis report on HY (preview of page 1 of 3 shown below):

High Alpha Stock #5: ASML Holding NV (ASML)

ASML Holding is one of the largest manufacturers of chip-making equipment in the world. The company’s customers include a wide variety of industries, and ASML is present in 16 countries with about 31,000 employees.

ASML has a current market capitalization of ~$275 billion and produces more than $30 billion in annual revenue.

ASML posted fourth quarter and full-year results on January 29th, 2025, and results were strong once again. The company noted revenue was 28% higher year-on-year to $9.6 billion, and beat estimates by more than $200 million.

Earnings-per-share came to $7.10, which beat estimates by 12 cents. Quarterly net booking were $7.4 billion, of which $3.1 billion was EUV.

China accounted for total net system sales of 27%, while the US was still the largest segment at 28%. It is unclear as of yet how export controls may play a part in this going forward.

For this year, guidance was initiated with a very wide range of ~$31 billion to ~$36 billion in sales, with gross margins expected to be 51% to 53% of revenue. Q1 gross margins are expected to be 52% to 53%, implying the possibility of deterioration for the remaining three quarters.

Click here to download our most recent Sure Analysis report on ASML (preview of page 1 of 3 shown below):

High Alpha Stock #4: Alphabet Inc. (GOOG)(GOOGL)

Alphabet is a technology conglomerate that operates several businesses such as Google search, Android, Chrome, YouTube, Nest, Gmail, Maps, and many more. Alphabet is a leader in many of the areas of technology that it operates.

On February 4th, 2025, Alphabet announced fourth quarter and full year results for the period ending December 31st, 2024. For the quarter, revenue grew 11.8% to $96.5 billion, but this was $170 million less than expected.

Adjusted earnings-per-share of $2.15 compared very favorably to $1.64 in the prior year and was $0.02 above estimates. For the year, revenue grew 14% to $350 billion while adjusted earnings-per-share of $8.04 compared to $5.80 in 2023.

Most businesses performed well during the period. For the quarter, revenue for Google Search, the largest contributor to results, grew 12.5% to $54 billion. YouTube ads increased 13.8% to $10.5 billion while Google Network declined 4.1% to just under $8 billion.

Click here to download our most recent Sure Analysis report on GOOGL (preview of page 1 of 3 shown below):

High Alpha Stock #3: Shutterstock, Inc. (SSTK)

Shutterstock sells high-quality creative content for brands, digital media and marketing companies through its global creative platform.

Its platform hosts the most extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations for licensing. The company reported $935 million in revenues last year.

On January 7th, 2025, Shutterstock announced it entered a merger agreement with Getty Images through a merger of equals. The combined company will retain the name Getty Images Holdings, Inc and trade on the NYSE under ticker GETY.

Getty Images shareholders will own roughly 54.6% of the entity and Shutterstock shareholders will own the remaining 45.3%. Shareholders of SSTK will receive $28.84870 of cash, or 9.17 shares of Getty Images plus $9.50 in cash per share.

The combined company would have revenue between $1,979 million and $1,993 million, 46% of it being subscription revenue. About $175 million of annual cost savings is forecast by the third year, with most of this expected after 1 to 2 years.

On January 27th, 2025, Shutterstock announced a $0.33 quarterly dividend, a 10% increase over the prior year.

On February 25th, 2025, Shutterstock published its fourth quarter results for the period ending December 31, 2024. While quarterly revenue grew by a solid 15% year-on-year, it missed analyst estimates by nearly $4 million.

Adjusted EPS of $0.67 decreased by 7%, and also missed analyst estimates by $0.18.

Click here to download our most recent Sure Analysis report on SSTK (preview of page 1 of 3 shown below):

High Alpha Stock #2: AES Corp. (AES)

The AES (Applied Energy Services) Corporation was founded in 1981 as an energy consulting company. The corporation now has businesses in 14 countries and a portfolio of approximately 160 generation facilities.

AES produces power through various fuel types, such as gas, renewables, coal, and oil/diesel. The company has more than 36,000 Gross MW in operation. In 2024, AES produced $12.3 billion in revenues.

AES Corporation reported fourth quarter results on February 28th, 2025, for the period ending December 31, 2024. Adjusted EPS decreased 26% to $0.54 for Q4 2024, but this still beat analyst estimates by $0.19.

For the full year, AES’ adjusted EPS rose 22% to $2.14 from $1.76 in 2023. The company constructed and acquired 3 GW of renewable energy in 2024, as well as constructed a 670 MW combined cycle gas plant in Panama.

Leadership initiated its 2025 guidance, expecting adjusted EPS of $2.10 to $2.26 for the full fiscal year. Additionally, the company reaffirms its expectation it can grow EPS on average 7% to 9% through 2025 from a base year of 2020. It also expects annual EPS growth of 7% to 9% from 2023 through 2027.

Click here to download our most recent Sure Analysis report on AES (preview of page 1 of 3 shown below):

High Alpha Stock #1: Eli Lilly & Co. (LLY)

Eli Lilly develops, manufactures, and sells pharmaceuticals around the world, and has about 43,000 employees globally. Eli Lilly has annual revenue of $59 billion.

On December 9th, 2024, Eli Lilly raised its quarterly dividend 15.4% to $1.50, extending the company’s dividend growth streak to 11 years.

On February 6th, 2025, Eli Lilly announced fourth quarter and full year results for the period ending December 31st, 2024. For the quarter, revenue surged 44.7%% to $13.5 billion, which beat estimates by $100 million.

Source: Investor Presentation

Adjusted earnings-per-share of $5.32 compared very favorably to adjusted earnings-per-share of $2.49 in the prior year and was $0.24 ahead of expectations.

For the year, revenue grew 32% $45 billion while adjusted earnings-per-share of $12.99 compared to $6.32 in 2023. Volumes company-wide were up 48% for the quarter, but pricing was down 4%.

U.S. revenue grew 40% to $9.03 billion, as volume was up 45% while pricing fell 5%. International revenues were up 55% to $4.5 billion as volumes improved 56%.

Revenue for Mounjaro, which helps patients with weight management and is the company’s top gross product, totaled $3.53 billion, compared to $2.21 billion a year ago.

Demand remains incredibly high for the product. Zepbound, which is also used to treat patients with obesity, had revenue of $1.91 billion for the quarter and $4.9 billion for the year.

Click here to download our most recent Sure Analysis report on LLY (preview of page 1 of 3 shown below):

Further Reading

If you are interested in finding high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:

Editor’s Note: The market may be turbulent, but innovation never stops — and that’s exactly why InvestorPlace Senior Analyst Louis Navellier remains confident. Just days ago, Amazon unveiled Ocelot, its first quantum computing chip, joining Microsoft and Google in a race to dominate this emerging tech frontier… and the next big investing opportunity.

But let’s be honest — quantum computing is complex, and understanding its real impact on the market can be challenging. That’s why Louis Navellier is holding an urgent briefing on Thursday, March 13, at 1 p.m. ET… just one week before Nvidia’s big “Quantum Day” announcements. Click here now to automatically register your spot for this free event.

Today, we’re sharing a piece from Louis that explains how a failed assignment led him to create a system that would find some of the market’s biggest winners… and how it can do the same for you.

There’s no way to sugarcoat it. The market’s a disaster right now, folks. 

The tariffs on Canada and Mexico, as well as the 20% tariffs on China, have sent the stock market spiraling lower in March. Even though President Trump backpedaled and postponed some of the tariffs on Canada and Mexico until April, it was too little, too late for many investors.

The S&P 500, Dow and NASDAQ have all erased their post-election gains. In fact, in the first six trading days of March alone, all three indices fell more than 4%. 

Breaking news keeps jerking the market around, too. Yesterday, the markets fell after President Trump announced even bigger tariffs on Canadian aluminum and steel – only to stage a rebound as news broke that Ukraine agreed to a 30-day ceasefire negotiated by the United States if Russia accepts the plan.

But believe it or not, a future billionaire is making their first move today.

George Washington once said that when you have a people who are “possessed by the spirit of Commerce,” they can achieve anything.

I don’t think our first president would realize just how true those words were. 

Consider Jeff Bezos. At 30 years old, he quit a cushy Wall Street job to sell books online – at a time when most people barely used the internet. 

Now, Amazon.com, Inc. (AMZN) dominates global commerce… and Bezos has a $215 billion net worth.

Or Bill Gates. He dropped out of Harvard to build software. Most people didn’t even own a computer back then. 

Today, Microsoft Corporation (MSFT) is a $3 trillion giant… and Bill Gates is worth about $108 billion.

Mark Zuckerberg… Elon Musk… I could go on. 

These guys weren’t lucky. They didn’t become billionaires overnight. They were talented, worked hard, and took advantage of life-changing opportunities whenever circumstances (or fate) came along. 

They are the epitome of the American dream.

Now, I am no Bill Gates or Jeff Bezos. Frankly, I am also more of a “car guy” than a “rocket ship guy.” 

However, I do like to say that my life story is also the embodiment of the American dream.

I wasn’t born with a silver spoon in my mouth. I’m the son of a stone mason and the first in my family to go to college. Today, I live a lavish lifestyle – and it’s all thanks to the market-beating system I created over four decades ago.  

Believe it or not, I stumbled onto this system by accident when I “failed” a specific assignment at Cal State Hayward in the late ’70s.

So, in today’s Market 360, I want to tell you about the failed assignment that started it all for me. I’ll explain how it led me to create a system that would find some of the market’s biggest winners over the past few decades. 

In fact, it helped me find NVIDIA Corporation (NVDA) when it was trading at just $1 (split-adjusted) in 2016. We all know what happened after that – the stock went up by more than 7,000% at its peak. 

Then, I’ll wrap things up by telling you about the 50X profit opportunity my system is alerting me to today… and where you can learn more about it.  

The “Failed” Assignment 

Back in college at Cal State Hayward in the late ’70s, everyone believed it was impossible to beat the market without taking on excessive risk. “Sure,” many said, “some traders can be lucky for a while, but no one can consistently beat the market.” 

Thankfully, an open-minded professor offered me the investing chance of a lifetime. He gave me unprecedented access to Wells Fargo’s mainframe computers to build my very own stock selection models. This was back when a computer took up the size of a room. They were prohibitively expensive for regular folks, so this was a tremendous privilege.

I spent countless hours learning how to read and research market data and built a stock selection model designed to mirror the S&P 500. But things didn’t turn out as I planned. When I ran the model, my returns came out considerably better than the S&P 500!

I had “failed” my assignment spectacularly.

I was stunned by the results. I double-checked the data, determined to get to the root of what happened. 

I was able to decipher that a select group of stocks consistently outperformed the S&P 500 in my model. These were smaller, supercharged companies that all had certain factors in common: increasing sales growth, expanding operating margins, earnings growth, positive earnings momentum, positive earnings surprises, positive earnings revisions, free cash flow and return on equity. 

I call these the Eight Fundamental Factors.

And it led me to build the system I use to this day: Stock Grader.

Stock Grader is my growth stock rating tool. It screens more than 6,000 stocks, interpreting reams of financial data each and every week. It’s powered by a version of the market-beating formula that I discovered more than 30 years ago. 

Over the years, I’ve constantly tweaked the formula, adjusting the weighting of individual variables as needed. But the market-beating variables themselves have stayed the same. 

While this system has grown much more sophisticated throughout the years, it remains the foundation of my own personal investing and my multi-decade career managing money for clients and providing analysis and recommendations to individual investors.

Let me explain how it works…