Navellier says energy and AI stocks can lead earnings rally
MarketWatch columnist Louis Navellier points to energy, information technology and materials as earnings season leaders after a strong second quarter.
By Sal Moretti · Money Reporter
3 min read
Energy stocks may deliver the sharpest gains in the next earnings rush, according to MarketWatch columnist Louis Navellier, who says investors should focus on three sectors: energy, information technology and materials.
Navellier, founder and chief investment officer of Navellier & Associates, said the second quarter was the strongest quarter in six years for both the Nasdaq Composite and the S&P 500. He tied that run to rising earnings expectations and faster economic growth.
Analysts estimate S&P 500 earnings will grow 26.1% in 2026 and 17.8% in 2027, according to figures Navellier cited from Yardeni Research. He said portfolios structured by Navellier & Associates for separately managed accounts and clients are positioned around companies with 40% forecast annual sales growth and more than 100% forecast earnings growth, based on FactSet consensus figures.
The stock lists Navellier is watching
In energy, Navellier named Okeanis Eco Tankers, International Seaways, Teekay Tankers, HF Sinclair, Phillips 66, Cenovus Energy and Suncor Energy among his preferred names.
His information-technology and data-center-related list includes Nvidia, Advanced Micro Devices, Micron Technology, Seagate Technology, Palantir Technologies, AppLovin, Bloom Energy, GE Vernova, Comfort Systems USA, Quanta Services and Ciena.
For materials, Navellier highlighted Carpenter Technology and Howmet Aerospace.
Backlogs power the AI infrastructure trade
Navellier said some of the clearest earnings growth should show up in companies tied to AI data centers and their power needs. Analysts expect Bloom Energy revenue to rise 102.7% and earnings to climb 294.1%, according to the figures he cited. GE Vernova is forecast to post 17.9% revenue growth and 69.3% earnings growth.
He also pointed to order backlogs: $20 billion at Bloom Energy and $163 billion at GE Vernova. Navellier said Bloom’s backlog is about 10 times its 2025 sales, while GE Vernova’s is about four times its 2025 sales.
According to Navellier, both companies help new data centers avoid relying on utility grids, with Bloom using natural-gas fuel cells and GE Vernova using turbines. He said AI data-center demand is not expected to be fully met for at least three years and could support growth through 2029.
Other AI infrastructure names also carry strong forecasts, he said. Analysts expect Quanta Services to grow revenue 27.2% and earnings 33.4%, while Comfort Systems USA is forecast for 36.8% revenue growth and 59.6% earnings growth. Seagate Technology is expected to post 42.5% revenue growth and 96% earnings growth. Nvidia is forecast for 96.2% revenue growth and 98% earnings growth.
Navellier cautioned that rising sales and earnings do not automatically lift stock prices. He said price-to-earnings ratios have compressed for some companies, citing Nvidia at 15.3 times forecast 2027 earnings and Micron at 6.5 times forecast 2027 earnings.
He also forecast third-quarter U.S. GDP growth could reach at least a 5% annual pace, citing onshoring by U.S. multinationals, energy exports, retail sales and AI-related productivity gains.
Navellier & Associates disclosed that it owns many of the stocks discussed in managed accounts, including Nvidia, AMD, Okeanis Eco Tankers, International Seaways, HF Sinclair, Phillips 66, Cenovus, Suncor, Quanta, Bloom Energy, GE Vernova, Micron, Comfort Systems, Seagate, Ciena, Palantir, AppLovin, Howmet and Carpenter. Navellier and his family also own those names through a Navellier-managed account, and Navellier owns Nvidia in a personal account.
This story draws on original reporting from MarketWatch.