Louis Navellier's "Little Book That Makes You Rich" outlines eight fundamental rules designed to identify superior growth stocks, focusing on earnings revisions, surprises, sales and profit expansion, cash flow strength, and return on equity. After running a screen based on this methodology, one name that emerges as a strong candidate is VITA COCO CO INC/THE (NASDAQ:COCO), a leading producer and distributor of coconut water and plant-based beverages.
Meeting the Eight Rules
The screening criteria map directly to Navellier's rules, and COCO scores well on nearly every metric. Here is how the stock lines up against the key requirements:
- Positive Earnings Revisions: The average EPS estimate for the next quarter has been raised by 11.04% over the last three months, well above the 4% threshold.
- Positive Earnings Surprises: COCO has beaten analyst estimates in three of the last four quarters, with an average beat of 25.07%, far exceeding the 10% minimum.
- Increasing Sales Growth: Revenue grew 26.10% year-over-year (TTM) and 28.08% quarter-over-quarter, both surpassing the 20% targets.
- Expanding Operating Margin: The operating margin expanded by 54.31% over the past year, dramatically above the 2% requirement.
- Strong Cash Flow: Free cash flow growth came in at 16.07% over the past year, exceeding the 15% filter.
- Earnings Growth: EPS grew 69.16% year-over-year (TTM) and 115.79% quarter-over-quarter, well above the 15% thresholds.
- Positive Earnings Momentum: The current quarter-over-quarter EPS growth of 115.79% is far higher than the 18.75% growth recorded in the same quarter one year ago, indicating acceleration.
- High Return on Equity: ROE stands at 27.30%, well above the 10% minimum and among the top decile of its industry peers.
Fundamental View
The overall fundamental health of COCO is strong, earning a rating of 7 out of 10 in the detailed analysis. The company boasts excellent profitability metrics with ROA, ROE, and ROIC all in the top quartile of the Beverages industry, and a pristine balance sheet with zero debt and an Altman-Z score of 17.00. While the stock’s valuation appears elevated — the trailing P/E is 37.31 — this is compensated by outstanding growth and a PEG ratio that suggests the premium is justified. Investors who want the full breakdown can explore the fundamental analysis report for a deeper look at the numbers behind the rating.
Why This Matters for the Strategy
Navellier’s rules are designed to catch companies that are not only growing but are doing so with improving operational efficiency and market confidence. COCO’s accelerating earnings, expanding margins, and consistent analyst upgrades all confirm that it fits the profile of a high-momentum growth stock. The strong cash flow and debt-free balance sheet further reduce risk, allowing the company to reinvest in its own expansion. For growth investors following this methodology, COCO represents a stock that passes the core tests while also offering a margin of safety through its financial strength.
Finding More Opportunities
This screen is intended as a starting point for discovering stocks with similar characteristics. The configuration uses short-term fundamental ratios to identify newer growth companies early, and investors are encouraged to adjust filters to match their own risk tolerance. To see the full list of stocks that currently meet the Little Book criteria, visit the shared screening tool.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
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Vita Coco (NASDAQ:COCO) Passes All Eight of Navellier's High-Growth Stock Rules
Louis Navellier's "Little Book That Makes You Rich" outlines eight fundamental rules designed to identify superior growth stocks, focusing on earnings revisions, surprises, sales and profit expansion, cash flow strength, and return on equity. After running a screen based on this methodology, one name that emerges as a strong candidate is VITA COCO CO INC/THE (NASDAQ:COCO), a leading producer and distributor of coconut water and plant-based beverages.
Meeting the Eight Rules
The screening criteria map directly to Navellier's rules, and COCO scores well on nearly every metric. Here is how the stock lines up against the key requirements:
Fundamental View
The overall fundamental health of COCO is strong, earning a rating of 7 out of 10 in the detailed analysis. The company boasts excellent profitability metrics with ROA, ROE, and ROIC all in the top quartile of the Beverages industry, and a pristine balance sheet with zero debt and an Altman-Z score of 17.00. While the stock’s valuation appears elevated — the trailing P/E is 37.31 — this is compensated by outstanding growth and a PEG ratio that suggests the premium is justified. Investors who want the full breakdown can explore the fundamental analysis report for a deeper look at the numbers behind the rating.
Why This Matters for the Strategy
Navellier’s rules are designed to catch companies that are not only growing but are doing so with improving operational efficiency and market confidence. COCO’s accelerating earnings, expanding margins, and consistent analyst upgrades all confirm that it fits the profile of a high-momentum growth stock. The strong cash flow and debt-free balance sheet further reduce risk, allowing the company to reinvest in its own expansion. For growth investors following this methodology, COCO represents a stock that passes the core tests while also offering a margin of safety through its financial strength.
Finding More Opportunities
This screen is intended as a starting point for discovering stocks with similar characteristics. The configuration uses short-term fundamental ratios to identify newer growth companies early, and investors are encouraged to adjust filters to match their own risk tolerance. To see the full list of stocks that currently meet the Little Book criteria, visit the shared screening tool.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »