Louis Navellier's "Little Book That Makes You Rich" outlines a systematic growth investing approach built on eight fundamental rules designed to identify companies with accelerating earnings, strong sales growth, and improving operational efficiency. The methodology focuses on companies that not only grow but do so with increasing profitability, positive analyst revisions, and consistent earnings surprises—characteristics that typically drive sustained price appreciation. We ran a screener based on these principles, and one company that consistently appears on the radar is Remitly Global Inc (NASDAQ:RELY), a digital financial services platform focused on cross-border money transfers for immigrants and their families.
Meeting Navellier's Eight Rules
Navellier's framework rewards companies that demonstrate across-the-board fundamental strength, and Remitly checks nearly every box with data that goes well beyond the minimum thresholds.
Revenue Growth (Rules 3 & 6): The screener requires at least 20% year-over-year and quarter-over-quarter revenue growth. Remitly reports TTM revenue growth of 27.3% and quarterly sales growth of 25.2%, comfortably clearing both hurdles. This indicates the company is expanding its user base and transaction volume in a large, underserved market.
Earnings Growth and Momentum (Rules 6 & 7): This is where Remitly stands out dramatically. TTM EPS growth stands at an extraordinary 1,733%. More importantly, the most recent quarter's EPS growth of 360% far exceeds the figure from four quarters ago (145%), creating a clear acceleration pattern that satisfies the positive earnings momentum requirement. Navellier emphasizes that accelerating earnings often precede further price gains.
Operating Margin Expansion (Rule 4): The operating margin has grown by over 1,630% year-over-year, indicating that the business model is achieving significant operating leverage as revenue scales.
Strong Cash Flow (Rule 5): Free cash flow growth over the past year is 296.6%, well above the 15% minimum and signaling that the company is generating increasing internal resources to fund its expansion.
Positive Earnings Revisions and Surprises (Rules 1 & 2): Analysts have raised next quarter's EPS estimates by 5% over the last three months. Remitly has also beaten earnings estimates in all of the last four quarters, with an average beat of 502%. This consistent outperformance forces analysts to revise their models upward—a core driver of the strategy.
Return on Equity (Rule 8): The company's ROE stands at 11.6%, exceeding the 10% minimum and confirming efficient use of shareholder capital.
High-Level Fundamental Assessment
Looking at the full fundamental analysis report, Remitly earns an overall rating of 5 out of 10. The score is pulled down by a valuation that appears expensive—the P/E ratio of 49.24 is well above the industry average—and a profitability score that is only average. However, the health rating is excellent, with an Altman-Z score of 8.19 (indicating very low bankruptcy risk), zero debt on the books, and a current ratio of 2.84. The growth sub-score is the standout at 7 out of 10, driven by the exceptional past EPS growth and strong expected forward EPS growth of 52.5% annually.
Valuation in Context
While the headline multiples look rich, the PEG ratio compensates for this, suggesting the stock may actually be reasonably priced relative to its growth trajectory. For a growth investor following Navellier's playbook, a premium valuation is acceptable when the underlying fundamentals—especially earnings acceleration and analyst revisions—are so clearly aligned.
For investors who want to explore other stocks meeting these same rigorous criteria, the full list of results from the Little Book screener can be found here.
This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
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Remitly Global Inc (NASDAQ:RELY) Meets Navellier's Eight Rules for High Growth Stock Investing
Louis Navellier's "Little Book That Makes You Rich" outlines a systematic growth investing approach built on eight fundamental rules designed to identify companies with accelerating earnings, strong sales growth, and improving operational efficiency. The methodology focuses on companies that not only grow but do so with increasing profitability, positive analyst revisions, and consistent earnings surprises—characteristics that typically drive sustained price appreciation. We ran a screener based on these principles, and one company that consistently appears on the radar is Remitly Global Inc (NASDAQ:RELY), a digital financial services platform focused on cross-border money transfers for immigrants and their families.
Meeting Navellier's Eight Rules
Navellier's framework rewards companies that demonstrate across-the-board fundamental strength, and Remitly checks nearly every box with data that goes well beyond the minimum thresholds.
Revenue Growth (Rules 3 & 6): The screener requires at least 20% year-over-year and quarter-over-quarter revenue growth. Remitly reports TTM revenue growth of 27.3% and quarterly sales growth of 25.2%, comfortably clearing both hurdles. This indicates the company is expanding its user base and transaction volume in a large, underserved market.
Earnings Growth and Momentum (Rules 6 & 7): This is where Remitly stands out dramatically. TTM EPS growth stands at an extraordinary 1,733%. More importantly, the most recent quarter's EPS growth of 360% far exceeds the figure from four quarters ago (145%), creating a clear acceleration pattern that satisfies the positive earnings momentum requirement. Navellier emphasizes that accelerating earnings often precede further price gains.
Operating Margin Expansion (Rule 4): The operating margin has grown by over 1,630% year-over-year, indicating that the business model is achieving significant operating leverage as revenue scales.
Strong Cash Flow (Rule 5): Free cash flow growth over the past year is 296.6%, well above the 15% minimum and signaling that the company is generating increasing internal resources to fund its expansion.
Positive Earnings Revisions and Surprises (Rules 1 & 2): Analysts have raised next quarter's EPS estimates by 5% over the last three months. Remitly has also beaten earnings estimates in all of the last four quarters, with an average beat of 502%. This consistent outperformance forces analysts to revise their models upward—a core driver of the strategy.
Return on Equity (Rule 8): The company's ROE stands at 11.6%, exceeding the 10% minimum and confirming efficient use of shareholder capital.
High-Level Fundamental Assessment
Looking at the full fundamental analysis report, Remitly earns an overall rating of 5 out of 10. The score is pulled down by a valuation that appears expensive—the P/E ratio of 49.24 is well above the industry average—and a profitability score that is only average. However, the health rating is excellent, with an Altman-Z score of 8.19 (indicating very low bankruptcy risk), zero debt on the books, and a current ratio of 2.84. The growth sub-score is the standout at 7 out of 10, driven by the exceptional past EPS growth and strong expected forward EPS growth of 52.5% annually.
Valuation in Context
While the headline multiples look rich, the PEG ratio compensates for this, suggesting the stock may actually be reasonably priced relative to its growth trajectory. For a growth investor following Navellier's playbook, a premium valuation is acceptable when the underlying fundamentals—especially earnings acceleration and analyst revisions—are so clearly aligned.
For investors who want to explore other stocks meeting these same rigorous criteria, the full list of results from the Little Book screener can be found here.
This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
Read full article here »