Louis Navellier's "Little Book That Makes You Rich" distills growth investing into eight fundamental rules that all point in the same direction: find companies whose sales and earnings are accelerating, beating estimates, and generating stronger profitability as they scale. Running those rules through a screener built around the methodology surfaces REMITLY GLOBAL INC (NASDAQ:RELY), a digital cross-border payments company whose recent earnings revisions, sales momentum, and expanding margins match the profile the strategy is designed to capture.
The strategy at a glance
In the book, Navellier argues that a handful of repeatable fundamental signals can identify superior growth stocks. The screen based on this methodology filters on:
- Positive earnings revisions
- Positive earnings surprises
- Increasing sales growth
- Expanding operating margins
- Strong cash flow
- Earnings growth
- Positive earnings momentum
- High return on equity
These eight criteria are additive. A stock that checks most of them, especially at high levels, is showing evidence that institutional estimates are catching up to its actual execution and that the growth is funded by the business itself rather than by financial engineering.
How Remitly fits the screen
Remitly reported the kind of numbers that make this screen stand up and take notice. The company beat analyst estimates in all of the last four quarters, and the average EPS surprise was approximately 470%, far above the 10% threshold used in the screen. Estimates for the next quarter were also raised by 6.12% over the last three months, above the screen's 4% revision requirement.
On growth, Remitly's revenue was up 23.79% on a trailing twelve-month basis and 20.23% in the latest quarter against the same quarter a year earlier, clearing the 20% thresholds the screen applies. Earnings growth was even more pronounced, with TTM EPS up roughly 2,450% and Q2Q EPS growth at about 3,467%.
The profitability measures are where the stock strengthens its case:
- Operating margin growth over the past year: 521.07%
- Free cash flow growth over the past year: 1,548.09%
- Return on equity: 27.07%
- ROE comfortably above the screen's 10% minimum
Earnings momentum, which the screen checks by comparing the latest Q2Q EPS growth with the comparable quarter a year earlier, also passes: the current Q2Q EPS growth of roughly 3,467% compares with 150% for the prior-year quarter.
The fundamentals in one view
The ChartMill fundamental report assigns Remitly a rating of 6 out of 10. The health side is the standout segment, with an Altman-Z score of 9.04, a current ratio of 3.18, and a debt to free cash flow ratio near zero. Profitability is described as average, but return on assets, return on equity, and return on invested capital all rank in the upper quartile of the Financial Services industry. Growth is strong, with EPS expected to rise about 52.48% annually in the coming years, and the stock looks reasonably valued on trailing earnings even though forward multiples are richer. Investors who want to review the full fundamental breakdown can use this fundamental analysis page.
Why this profile matters for the strategy
The criteria in Navellier's approach are not arbitrary. Upward revisions and consecutive earnings surprises show that the sell-side is being forced to chase the company's actual performance, which tends to create persistent price support as estimates reset higher. Expanding operating margins and strong free cash flow mean the growth is profitable and self-financed, reducing the risk that the expansion is being bought with leverage. The screen's emphasis on high ROE adds a capital allocation quality check, ensuring the business generates strong returns on the equity shareholders have put in.
Remitly combines those elements unusually well. The headline earnings growth numbers are large partly because the base was low, and the company was not profitable in all recent years, so investors should keep that context in mind. Still, the combination of accelerating growth, consistent beats, and a clean balance sheet fits the growth investing profile that the methodology is meant to isolate.
Risks and limitations
The forward price-to-earnings ratio of 26.70 is well above the trailing P/E of 15.96, which suggests the market is already paying for expected growth. If revenue or earnings growth slows, the stock could be vulnerable to a revaluation. The screen is also fundamental rather than technical, and the book itself notes that the relative importance of the eight rules can shift with market conditions. The S&P 500 is currently in a positive long-term and short-term trend, which can be a supportive backdrop for growth strategies, but it also puts a premium on holding companies that continue to deliver fundamental improvement.
Other screens confirm the growth profile
Remitly isn’t just a fit for the Little Book methodology; it also shows up on other screens built around the same core growth and quality traits. The Fastest Growing Stocks screen selects companies with strong growth characteristics and overall business quality, and RELY shows strong recent growth in both earnings and sales. The Revenue Growth Leaders screen reinforces that from a top-line perspective, with RELY showing strong recent and multi-year revenue growth. Together, these screens independently point to the same conclusion: Remitly’s expansion is broad-based, not a one-off quarter.
Finding more stocks that qualify
The Little Book screen is designed as a starting point, and investors can adjust the thresholds depending on their risk appetite. For a current list of companies that meet these fundamental growth criteria, run the Little Book screen to see which other stocks are matching the methodology today.
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 »
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Remitly Global (NASDAQ:RELY) Demonstrates High Growth with Accelerating Sales, Earnings, and Margins
Louis Navellier's "Little Book That Makes You Rich" distills growth investing into eight fundamental rules that all point in the same direction: find companies whose sales and earnings are accelerating, beating estimates, and generating stronger profitability as they scale. Running those rules through a screener built around the methodology surfaces REMITLY GLOBAL INC (NASDAQ:RELY), a digital cross-border payments company whose recent earnings revisions, sales momentum, and expanding margins match the profile the strategy is designed to capture.
The strategy at a glance
In the book, Navellier argues that a handful of repeatable fundamental signals can identify superior growth stocks. The screen based on this methodology filters on:
These eight criteria are additive. A stock that checks most of them, especially at high levels, is showing evidence that institutional estimates are catching up to its actual execution and that the growth is funded by the business itself rather than by financial engineering.
How Remitly fits the screen
Remitly reported the kind of numbers that make this screen stand up and take notice. The company beat analyst estimates in all of the last four quarters, and the average EPS surprise was approximately 470%, far above the 10% threshold used in the screen. Estimates for the next quarter were also raised by 6.12% over the last three months, above the screen's 4% revision requirement.
On growth, Remitly's revenue was up 23.79% on a trailing twelve-month basis and 20.23% in the latest quarter against the same quarter a year earlier, clearing the 20% thresholds the screen applies. Earnings growth was even more pronounced, with TTM EPS up roughly 2,450% and Q2Q EPS growth at about 3,467%.
The profitability measures are where the stock strengthens its case:
Earnings momentum, which the screen checks by comparing the latest Q2Q EPS growth with the comparable quarter a year earlier, also passes: the current Q2Q EPS growth of roughly 3,467% compares with 150% for the prior-year quarter.
The fundamentals in one view
The ChartMill fundamental report assigns Remitly a rating of 6 out of 10. The health side is the standout segment, with an Altman-Z score of 9.04, a current ratio of 3.18, and a debt to free cash flow ratio near zero. Profitability is described as average, but return on assets, return on equity, and return on invested capital all rank in the upper quartile of the Financial Services industry. Growth is strong, with EPS expected to rise about 52.48% annually in the coming years, and the stock looks reasonably valued on trailing earnings even though forward multiples are richer. Investors who want to review the full fundamental breakdown can use this fundamental analysis page.
Why this profile matters for the strategy
The criteria in Navellier's approach are not arbitrary. Upward revisions and consecutive earnings surprises show that the sell-side is being forced to chase the company's actual performance, which tends to create persistent price support as estimates reset higher. Expanding operating margins and strong free cash flow mean the growth is profitable and self-financed, reducing the risk that the expansion is being bought with leverage. The screen's emphasis on high ROE adds a capital allocation quality check, ensuring the business generates strong returns on the equity shareholders have put in.
Remitly combines those elements unusually well. The headline earnings growth numbers are large partly because the base was low, and the company was not profitable in all recent years, so investors should keep that context in mind. Still, the combination of accelerating growth, consistent beats, and a clean balance sheet fits the growth investing profile that the methodology is meant to isolate.
Risks and limitations
The forward price-to-earnings ratio of 26.70 is well above the trailing P/E of 15.96, which suggests the market is already paying for expected growth. If revenue or earnings growth slows, the stock could be vulnerable to a revaluation. The screen is also fundamental rather than technical, and the book itself notes that the relative importance of the eight rules can shift with market conditions. The S&P 500 is currently in a positive long-term and short-term trend, which can be a supportive backdrop for growth strategies, but it also puts a premium on holding companies that continue to deliver fundamental improvement.
Other screens confirm the growth profile
Remitly isn’t just a fit for the Little Book methodology; it also shows up on other screens built around the same core growth and quality traits. The Fastest Growing Stocks screen selects companies with strong growth characteristics and overall business quality, and RELY shows strong recent growth in both earnings and sales. The Revenue Growth Leaders screen reinforces that from a top-line perspective, with RELY showing strong recent and multi-year revenue growth. Together, these screens independently point to the same conclusion: Remitly’s expansion is broad-based, not a one-off quarter.
Finding more stocks that qualify
The Little Book screen is designed as a starting point, and investors can adjust the thresholds depending on their risk appetite. For a current list of companies that meet these fundamental growth criteria, run the Little Book screen to see which other stocks are matching the methodology today.
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 »