The "Little Book That Makes You Rich," written by growth-investing legend Louis Navellier, distills a winning formula into eight fundamental rules designed to identify high-momentum growth stocks before they take off. The strategy focuses on companies that are not just growing, but doing so with increasing profitability, strong cash flows, and consistent positive surprises that force Wall Street to revise its estimates upward. We ran this exact methodology through a stock screener, and one name that consistently checked all the boxes was Alnylam Pharmaceuticals Inc (NASDAQ:ALNY). Here is a closer look at why this biotech player looks like a textbook candidate for the "Little Book" approach.
Recent Performance and Growth Metrics
Alnylam has been firing on all cylinders when it comes to top- and bottom-line expansion. According to the screener data, the company posted earnings per share (EPS) growth of 288.04% over the past trailing twelve months, while revenue surged 82.57% year-over-year. This aligns perfectly with Rule 6 (Earnings Growth) and Rule 3 (Increasing Sales Growth), which require at least 15% and 20% growth respectively. Alnylam blows those minimums out of the water.
Even more telling is the acceleration in earnings. The quarter-over-quarter (Q2Q) EPS growth came in at 443.18%, compared to just 15.38% four quarters ago. This acceleration is the essence of Rule 7 (Positive Earnings Momentum). Navellier emphasizes that you want to see the growth rate picking up speed, not slowing down. Alnylam is clearly doing just that.
Earnings Surprises and Revisions
Navellier’s first two rules focus on analyst expectations. The logic is simple: when companies consistently beat estimates, analysts are forced to raise their future forecasts, creating a self-fulfilling cycle of upward price momentum.
Alnylam delivered positive EPS surprises in 3 of the last 4 quarters, with an average beat of 58.95% — far above the 10% threshold set in the screen. As a result, the average EPS estimate for the next quarter has been raised by 5.19% over the last three months. This combination of consistent beats and upward revisions is the exact feedback loop the "Little Book" strategy aims to capture.
Profitability and Cash Flow
Many high-growth companies burn cash, but Navellier’s rules demand that growth be backed by solid operational health. Alnylam passes with flying colors here. The operating margin has grown by an incredible 457.08% over the past year, handily exceeding the 2% minimum (Rule 4). The company now has an operating margin of 17.54% and a profit margin of 13.46%.
Cash flow generation, another foundation (Rule 5), is equally impressive. Free cash flow grew by 401.61% over the past year, against a required minimum of just 15%. This gives Alnylam the financial flexibility to fund its own growth without leaning excessively on debt.
Return on Equity and Valuation
Rule 8 calls for a high return on equity (ROE). Alnylam delivers a stellar ROE of 53.68%, placing it among the top percentile of its biotechnology peers. For context, this means the company generates over 50 cents of profit for every dollar of shareholder equity — a sign of highly efficient capital use.
Our detailed fundamental analysis report gives Alnylam a rating of 6 out of 10. While profitability and financial health scores are only average, the growth and valuation scores are excellent — a rare combination. The stock trades at a P/E of 70.76, which looks expensive on its own, but the forward P/E drops to just 24.93, and the low PEG ratio suggests the current price is more than justified by the explosive growth outlook. You can view the full breakdown of these metrics on the fundamental analysis report.
Analyst Views and Outlook
The future looks equally bright. Analysts expect EPS to grow at an average rate of 61.72% per year over the next several years, with revenue expanding by 25.57% annually. While the revenue growth rate is expected to moderate slightly from the blistering pace of the past, it remains well above the levels that growth investors typically seek.
Alnylam’s pipeline of RNAi therapeutics already includes five approved products and several late-stage candidates, providing a solid foundation for sustained expansion. With the broader S&P 500 showing positive trends in both the long and short term, the market environment is currently supportive for high-momentum names like this.
Screening for More Opportunities
This stock surfaced from a screen built specifically around Navellier’s eight rules, applied to the entire U.S. market. If Alnylam’s combination of accelerating growth, rising margins, and strong return on equity appeals to you, there are likely other candidates worth exploring. To see the full list of stocks currently meeting these criteria, check out the live results via the [Little Book strategy screener](https://www.chartmill.com/stock/stock-screener?sid=677&f=sl_roe_10_X,eps4_bm3,eps4_avga10,sl_rev1y_20_X,sl_revq2q_20_X,sl_omYGrowthTtm_2_X,sl_fcfYGrowthTtm_15_X,sl_epsq2q_15_X,sl_revNqEps3m_4_X,sl_eps1y_15_X,exch_us&v=23&s=ta&sd=DESC&cpl=2&bc=false&nw=1&o1=3&op1=200,16711680&o2=3&op2=50,255&o3=1&cf=(epsq2q%3EpEpsQ2Q)>.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions.
Read full article here »
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Alnylam Pharmaceuticals Inc (NASDAQ:ALNY) Passes the "Little Book" Test with Explosive Growth and Upward Momentum
The "Little Book That Makes You Rich," written by growth-investing legend Louis Navellier, distills a winning formula into eight fundamental rules designed to identify high-momentum growth stocks before they take off. The strategy focuses on companies that are not just growing, but doing so with increasing profitability, strong cash flows, and consistent positive surprises that force Wall Street to revise its estimates upward. We ran this exact methodology through a stock screener, and one name that consistently checked all the boxes was Alnylam Pharmaceuticals Inc (NASDAQ:ALNY). Here is a closer look at why this biotech player looks like a textbook candidate for the "Little Book" approach.
Recent Performance and Growth Metrics
Alnylam has been firing on all cylinders when it comes to top- and bottom-line expansion. According to the screener data, the company posted earnings per share (EPS) growth of 288.04% over the past trailing twelve months, while revenue surged 82.57% year-over-year. This aligns perfectly with Rule 6 (Earnings Growth) and Rule 3 (Increasing Sales Growth), which require at least 15% and 20% growth respectively. Alnylam blows those minimums out of the water.
Even more telling is the acceleration in earnings. The quarter-over-quarter (Q2Q) EPS growth came in at 443.18%, compared to just 15.38% four quarters ago. This acceleration is the essence of Rule 7 (Positive Earnings Momentum). Navellier emphasizes that you want to see the growth rate picking up speed, not slowing down. Alnylam is clearly doing just that.
Earnings Surprises and Revisions
Navellier’s first two rules focus on analyst expectations. The logic is simple: when companies consistently beat estimates, analysts are forced to raise their future forecasts, creating a self-fulfilling cycle of upward price momentum.
Alnylam delivered positive EPS surprises in 3 of the last 4 quarters, with an average beat of 58.95% — far above the 10% threshold set in the screen. As a result, the average EPS estimate for the next quarter has been raised by 5.19% over the last three months. This combination of consistent beats and upward revisions is the exact feedback loop the "Little Book" strategy aims to capture.
Profitability and Cash Flow
Many high-growth companies burn cash, but Navellier’s rules demand that growth be backed by solid operational health. Alnylam passes with flying colors here. The operating margin has grown by an incredible 457.08% over the past year, handily exceeding the 2% minimum (Rule 4). The company now has an operating margin of 17.54% and a profit margin of 13.46%.
Cash flow generation, another foundation (Rule 5), is equally impressive. Free cash flow grew by 401.61% over the past year, against a required minimum of just 15%. This gives Alnylam the financial flexibility to fund its own growth without leaning excessively on debt.
Return on Equity and Valuation
Rule 8 calls for a high return on equity (ROE). Alnylam delivers a stellar ROE of 53.68%, placing it among the top percentile of its biotechnology peers. For context, this means the company generates over 50 cents of profit for every dollar of shareholder equity — a sign of highly efficient capital use.
Our detailed fundamental analysis report gives Alnylam a rating of 6 out of 10. While profitability and financial health scores are only average, the growth and valuation scores are excellent — a rare combination. The stock trades at a P/E of 70.76, which looks expensive on its own, but the forward P/E drops to just 24.93, and the low PEG ratio suggests the current price is more than justified by the explosive growth outlook. You can view the full breakdown of these metrics on the fundamental analysis report.
Analyst Views and Outlook
The future looks equally bright. Analysts expect EPS to grow at an average rate of 61.72% per year over the next several years, with revenue expanding by 25.57% annually. While the revenue growth rate is expected to moderate slightly from the blistering pace of the past, it remains well above the levels that growth investors typically seek.
Alnylam’s pipeline of RNAi therapeutics already includes five approved products and several late-stage candidates, providing a solid foundation for sustained expansion. With the broader S&P 500 showing positive trends in both the long and short term, the market environment is currently supportive for high-momentum names like this.
Screening for More Opportunities
This stock surfaced from a screen built specifically around Navellier’s eight rules, applied to the entire U.S. market. If Alnylam’s combination of accelerating growth, rising margins, and strong return on equity appeals to you, there are likely other candidates worth exploring. To see the full list of stocks currently meeting these criteria, check out the live results via the [Little Book strategy screener](https://www.chartmill.com/stock/stock-screener?sid=677&f=sl_roe_10_X,eps4_bm3,eps4_avga10,sl_rev1y_20_X,sl_revq2q_20_X,sl_omYGrowthTtm_2_X,sl_fcfYGrowthTtm_15_X,sl_epsq2q_15_X,sl_revNqEps3m_4_X,sl_eps1y_15_X,exch_us&v=23&s=ta&sd=DESC&cpl=2&bc=false&nw=1&o1=3&op1=200,16711680&o2=3&op2=50,255&o3=1&cf=(epsq2q%3EpEpsQ2Q)>.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions.
Read full article here »