Remitly Global (NASDAQ:RELY) has emerged as a potential candidate for growth investors following the methodology outlined in Louis Navellier’s The Little Book That Makes You Rich. This strategy focuses on eight fundamental rules designed to identify companies with strong earnings momentum, accelerating growth, and solid financial health. The book emphasizes that stocks meeting these criteria—such as positive earnings surprises, rising sales, expanding margins, and high return on equity—tend to outperform over time, especially when consistent with analyst upgrades and strong cash flow. We ran a screen applying these rules to the broader market, and Remitly stood out as a strong match. Below, we break down how the company aligns with each key criterion from the strategy.
Recent Performance and Growth Metrics
Remitly’s recent financial performance shows the kind of explosive growth that growth investors target. The company reported earnings per share (EPS) growth of 1,733.33% over the past trailing twelve months (TTM), while quarterly EPS growth (Q2Q) surged by 360%. This far exceeds the strategy’s minimum threshold of 15% for both metrics. Revenue also climbed 27.27% on a TTM basis and 25.21% quarter-over-quarter, well above the required 20% growth rate. Such consistent acceleration—driven by a digital platform serving over 5,100 remittance corridors—suggests strong market demand and operational scalability. The strategy prizes this pattern because it often signals that a company is gaining market share and can sustain momentum, which in turn attracts analyst attention.
Positive Earnings Revisions and Surprises
A pillar of the strategy is identifying stocks where analysts are raising their estimates and where the company consistently beats expectations. Over the last three months, Remitly saw its next-quarter EPS estimate revised upward by 4.59%, surpassing the 4% threshold. Additionally, the company reported four positive earnings surprises in the last four quarters, with an average beat of 502%. These figures indicate that management is underpromising and overdelivering, a trait Navellier highlights as a catalyst for upward price movement. When analysts upgrade estimates based on such beats, it can create a self-reinforcing cycle of rising expectations and stock gains.
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Profitability and Margin Expansion
Beyond top-line growth, the strategy emphasizes improving profitability. Remitly’s operating margin expanded by a staggering 1,630.54% year-over-year, reflecting a significant shift toward efficiency as the company scales. Its gross margin of 66.81% outperforms 76.77% of industry peers, while the operating margin of 6.89% is in line with sector averages but improving rapidly. Return on equity (ROE) stands at 11.64%, exceeding the 10% minimum. The strategy favors such trends because they demonstrate that the company is not just growing revenue but also becoming more profitable—a key driver of long-term shareholder value. Free cash flow growth of 296.56% further reinforces this, as strong cash generation provides flexibility for reinvestment or debt reduction.
Valuation and Analyst Sentiment
While the screen focuses on fundamental strength, valuation remains a consideration. Remitly trades at a price-to-earnings (P/E) ratio of 44.37, which appears expensive relative to the industry median. However, the forward P/E of 23.88 is more reasonable, especially given expected EPS growth of 51.33% annually over the next few years. The PEG ratio, which adjusts P/E for growth, indicates relatively cheap valuation for the growth rate. The strategy acknowledges that premium valuations can be justified when growth is accelerating and earnings surprises are consistent—both of which apply here.
Fundamental Rating Overview
Our fundamental analysis report assigns Remitly a score of 5 out of 10, reflecting a mix of strengths and weaknesses. The company scores highest on financial health (8/10) and growth (7/10), thanks to a strong Altman-Z score of 7.56, negligible debt, and excellent liquidity ratios (current ratio of 2.84). Profitability scores a 4/10, with solid returns on assets and invested capital but historically negative earnings in prior years. Valuation is the weakest link at 3/10, due to high trailing multiples. However, future growth expectations may compensate for this. You can explore the full details of this analysis via the fundamental report.
How to Explore Similar Opportunities
Remitly is just one example of a stock that meets the core rules from Navellier’s strategy. If you’re interested in discovering other companies passing this screen, you can access the full list using the same criteria we applied. This screener link provides real-time results, allowing you to filter and analyze stocks that demonstrate positive earnings revisions, strong cash flow, and accelerating growth—key tenets of the little book strategy. Use it as a starting point for your own research.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own due diligence or consult a licensed financial professional before making investment decisions.
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Remitly Global (NASDAQ:RELY) Checks All the Boxes in Navellier’s Little Book Growth Strategy
Remitly Global (NASDAQ:RELY) has emerged as a potential candidate for growth investors following the methodology outlined in Louis Navellier’s The Little Book That Makes You Rich. This strategy focuses on eight fundamental rules designed to identify companies with strong earnings momentum, accelerating growth, and solid financial health. The book emphasizes that stocks meeting these criteria—such as positive earnings surprises, rising sales, expanding margins, and high return on equity—tend to outperform over time, especially when consistent with analyst upgrades and strong cash flow. We ran a screen applying these rules to the broader market, and Remitly stood out as a strong match. Below, we break down how the company aligns with each key criterion from the strategy.
Recent Performance and Growth Metrics
Remitly’s recent financial performance shows the kind of explosive growth that growth investors target. The company reported earnings per share (EPS) growth of 1,733.33% over the past trailing twelve months (TTM), while quarterly EPS growth (Q2Q) surged by 360%. This far exceeds the strategy’s minimum threshold of 15% for both metrics. Revenue also climbed 27.27% on a TTM basis and 25.21% quarter-over-quarter, well above the required 20% growth rate. Such consistent acceleration—driven by a digital platform serving over 5,100 remittance corridors—suggests strong market demand and operational scalability. The strategy prizes this pattern because it often signals that a company is gaining market share and can sustain momentum, which in turn attracts analyst attention.
Positive Earnings Revisions and Surprises
A pillar of the strategy is identifying stocks where analysts are raising their estimates and where the company consistently beats expectations. Over the last three months, Remitly saw its next-quarter EPS estimate revised upward by 4.59%, surpassing the 4% threshold. Additionally, the company reported four positive earnings surprises in the last four quarters, with an average beat of 502%. These figures indicate that management is underpromising and overdelivering, a trait Navellier highlights as a catalyst for upward price movement. When analysts upgrade estimates based on such beats, it can create a self-reinforcing cycle of rising expectations and stock gains.
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Profitability and Margin Expansion
Beyond top-line growth, the strategy emphasizes improving profitability. Remitly’s operating margin expanded by a staggering 1,630.54% year-over-year, reflecting a significant shift toward efficiency as the company scales. Its gross margin of 66.81% outperforms 76.77% of industry peers, while the operating margin of 6.89% is in line with sector averages but improving rapidly. Return on equity (ROE) stands at 11.64%, exceeding the 10% minimum. The strategy favors such trends because they demonstrate that the company is not just growing revenue but also becoming more profitable—a key driver of long-term shareholder value. Free cash flow growth of 296.56% further reinforces this, as strong cash generation provides flexibility for reinvestment or debt reduction.
Valuation and Analyst Sentiment
While the screen focuses on fundamental strength, valuation remains a consideration. Remitly trades at a price-to-earnings (P/E) ratio of 44.37, which appears expensive relative to the industry median. However, the forward P/E of 23.88 is more reasonable, especially given expected EPS growth of 51.33% annually over the next few years. The PEG ratio, which adjusts P/E for growth, indicates relatively cheap valuation for the growth rate. The strategy acknowledges that premium valuations can be justified when growth is accelerating and earnings surprises are consistent—both of which apply here.
Fundamental Rating Overview
Our fundamental analysis report assigns Remitly a score of 5 out of 10, reflecting a mix of strengths and weaknesses. The company scores highest on financial health (8/10) and growth (7/10), thanks to a strong Altman-Z score of 7.56, negligible debt, and excellent liquidity ratios (current ratio of 2.84). Profitability scores a 4/10, with solid returns on assets and invested capital but historically negative earnings in prior years. Valuation is the weakest link at 3/10, due to high trailing multiples. However, future growth expectations may compensate for this. You can explore the full details of this analysis via the fundamental report.
How to Explore Similar Opportunities
Remitly is just one example of a stock that meets the core rules from Navellier’s strategy. If you’re interested in discovering other companies passing this screen, you can access the full list using the same criteria we applied. This screener link provides real-time results, allowing you to filter and analyze stocks that demonstrate positive earnings revisions, strong cash flow, and accelerating growth—key tenets of the little book strategy. Use it as a starting point for your own research.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own due diligence or consult a licensed financial professional before making investment decisions.
Read full article here »