Hedge fund legend Louis Navellier is begging us to mark our calendars for September 30th.
That's when a $7 Trillion “Trump Shock” is supposed to hit and it will send a shortlist of five stocks soaring.
The Teaser
Trump's first six months in office have been a whirlwind and things are about to get even crazier.
Louis is an unabashed Trump loyalist, but his fund, Navellier & Associates, is also outpacing the S&P 500 over the past three years, making what he has to say relevant.
We have covered Louis' most recent teasers, including his Next Generation AI Stocks and AI Mineral Stocks.
This one closely tracks the others, it's optimistic about the economy and the market overall, while warning that this will not be a rising-tide-lifts-all-boats scenario.
Instead, there will be huge winners, but also, big losers.
So, what is causing this imbalance?
Unsurprisingly, it's artificial intelligence (AI).
This has been argued before, but it comes down to companies that are effectively utilizing AI to boost productivity, while lowering costs, and those that aren't.
By Louis' account, out of the 6,000+ Stocks that he tracks, only a very small percentage of them are doing the former.
The rest are dead money, or worse.
This is creating a “Magnificent 7 on steroids” situation.
For reference, The ‘Magnificent 7' stocks of Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta, and Tesla now make up over 36% of the S&P 500. While 493 companies comprise the other 64%.
In other words, an ever-smaller handful of stocks are poised to surge higher, while the rest of the market lags behind.
Such over-concentration is not a net positive, but, from an investment standpoint, it does present opportunities.
It signals that general ETFs and index funds will underperform, while the next Magnificent 7 or Fantastic 5 in this instance, will outperform.
The jumping off or rubber-meets-the-road moment for this “Trump Shock” is September 30th, which is when the surge in Louis' five select stocks will be ignited.
The Pitch
All the details on these stocks can be found in an urgent investment brief called The $7 Trillion Trump Shock: 5 Stocks Poised to Surge 1,000%.
This brief is only available to members of Louis' research service Accelerated Profits, which costs $1,799 to join and promises Louis’ very best stock recommendation every month, as well as a 90-day money-back guarantee.
The $7 Trillion September Surprise
Louis' teaser builds toward September 30th, which is when he predicts it will go down.
What exactly?
This is the date when the more than $7 trillion currently sitting in money-market accounts is expected to begin trickling into the market.
However, instead of hitting the market with a broadside strike, it’s going to be “a laser-focused jet stream that launches a handful of select stocks.”
This isn't the date of the Fed's next FOMC meeting to set interest rates, that's on Sept. 16-17.
But it is the end of the fiscal year for the federal government.
Historically, going back to Trump's first term, agencies spent a whopping $97 billion on over 509,000 contracts in the days right before September 30th.
Louis makes a legit point here.
Going back to my days owning a residential real estate brokerage in Florida that often dealt with the Department of Housing and Urban Development (HUD), it was a well known fact that whatever budget federal departments didn't spend, they lost the subsequent year, so money begins to flow around this time.
This applies equally to the DOD, DOE, Department of Commerce, and this time around there's also something else accelerating spending.
The United States Investment Accelerator
Back in March, when Trump was signing executive orders every day like they were going out of style, one got lost in the shuffle – Executive Order #14255.
It established a Department of Commerce program known simply as The United States Investment Accelerator.
The idea of it is to help lure foreign mega-investments back to the United States by fast-tracking permits, cutting red tape, and coordinating various state and federal agencies.
America is open for business and once the capital begins to flow, as soon as September 30th, a concentrated mega boom could follow.
Revealing Louis Navellier's Trump Shock Stocks
Louis believes “each of his five picks have the potential to go up 1,000%” or more.
Here is what we know about them:
1st Shock Stock
- It starts with a tiny $266 million company that’s essential to President Trump winning the AI race with China.
- The company owns the largest rare-earth land package in the United States.
- They've already announced their 2025 exploration plans, in alignment with President Trump’s order to increase rare earth production.
This one was easy, it's Idaho Strategic Resources (Nasdaq: IDR).
- IDR's market cap is now up to $406 million, but it's a gold producer that also happens to own the largest rare earth elements (REE) land package in the United States.
- The company announced its 2025 exploration plans back in March, highlighting how it is positioning itself as a vertically integrated player to reduce American dependence on foreign rare earth supply chains.
2nd Shock Stock
- This company utilizes a suite of advanced software and AI that allows customers to car-shop online and even enjoy home delivery.
- It's similar in nature to another one of Louis' past winners, Progressive, in that it’s not a manufacturer competing with other manufacturers. Instead, it rides industry growth.
This sounds like Carvana Co. (NYSE: CVNA).
- Online car shopping and home delivery is synonymous with the brand co-founded by the father and son team.
3rd Shock Stock
- This next company makes engines for everything from forklifts to agricultural and turf machinery to industrial sweepers to aerial lifts and construction equipment.
- At the same time, they’ve recently expanded into the data center sector.
- Citadel, the biggest hedge fund in the world, just increased its stake in this company by over 750%!
Power Solutions International, Inc. (Nasdaq: PSIX) is the most obvious pick here.
- Not only does PSI manufacture a broad range of advanced, emission-certified engines, but it also makes high-performance engines for data centers.
- Citadel Advisors is a confirmed shareholder, albeit not a significant one.
4th Shock Stock
- Our next company is also in the power sector. But instead of building engines, they build entire power plants.
- Their customers include utility companies, energy companies, and public-private infrastructure partnerships.
- They’re providing turnkey solutions for natural gas plants and critical infrastructure needed to meet new demand.
Enerflex Ltd. (NYSE: EFX) closely fits Louis' description.
- Enerflex provides integrated energy infrastructure solutions, be it systems or entire turnkey projects. This includes natural gas-fired power plants.
- Water treatment facilities, gas compression solutions, and custom infrastructure are the types of projects the company typically handles, fitting with the customer profile depicted in Louis' presentation.
5th Shock Stock
- The last company designs navigational systems, communication systems, sensors, and control devices, as well as flight deck systems.
- It has a client list that includes the U.S. Air Force, the Department of Defense, Boeing, the U.S. Coast Guard, the U.S. Navy, Northrop Grumman, and Lockheed Martin.
- At the moment, it sits at a market valuation of only $250 million.
Astronics Corp. (NASDAQ: ATRO) may be the pick here.
- Astronics designs and manufactures navigational systems, communication systems, and flight deck systems like integrated displays, electronic flight instrument systems, and cockpit lighting for enhanced pilot interfaces.
- Major clients include the Department of Defense for military avionics upgrades and Boeing among others.
- The last clue is not a fit, as the company's stock is now valued at more than $1.3 billion after a 175% run up so far this year.
Bonus Stock
At the very end of the presentation (last paragraph), Louis throws us another bone and says he has one more stock recommendation for us – TTM Technologies Inc. (Nasdaq: TTM).
Make 5,000% or More?
Louis believes “every single one of his five picks could surge 1,000%” or more.
Tellingly, no timeline is given for the 1,000% surge, but is this an accurate overall assessment of the potential and how solid is the September 30th catalyst?
On the latter point, September 30th may provide a temporary bump to some names like Astronics and Enerflex that deal with government-subsidized projects, but I'm not expecting any fireworks.
As for Louis' picks, let's briefly unpack each:
Idaho Strategic Resources: Well positioned to ride the wave of greater demand for rare earths. It will go higher.
Carvana: At a current price/earnings of 90x, it's valuation grinds my gears as it's too high.
Power Solutions International: The balance sheet could be cleaner, but a good ROE and low absolute P/E of 19x make it an underrated pick.
Enerflex: A service business with the debt profile of a utility. I would pass.
Astronics: An unprofitable industrial manufacturer. It's an easy pass.
TTM Technologies: Electronics manufacturer with no inherent competitive advantage and a hefty valuation of 55x current earnings. I don't see what Louis does here.
Overall, two decent picks with real multibagger potential and a quartet of below average businesses.
More or less par for the course for multi-pick teasers.
Quick Recap & Conclusion
- Hedge fund legend Louis Navellier is teasing a $7 Trillion “Trump Shock” that could send a shortlist of five stocks soaring.
- The “Trump Shock” is the end of the fiscal year for the federal government, when cash is doled out and delayed projects get funded. Add the lighter fluid of Trump's Investment Accelerator executive order to the equation, and the rubber could meet the road on September 30th for five select stocks.
- All the details on these stocks can be found in an urgent investment brief called The $7 Trillion Trump Shock: 5 Stocks Poised to Surge 1,000%. This brief is only available to members of Louis' research service Accelerated Profits, which costs $1,799 to join for a limited time.
- Greenbull readers can skip the upfront payment, as we were able to reveal Louis' picks for free: Idaho Strategic Resources (Nasdaq: IDR), Carvana Co. (NYSE: CVNA), Power Solutions International, Inc. (Nasdaq: PSIX), Enerflex Ltd. (NYSE: EFX), Astronics Corp. (NASDAQ: ATRO), and a bonus pick, TTM Technologies Inc. (Nasdaq: TTMI).
- Overall, the teaser gave us two picks with multibagger potential (IDR and PSI) and a quartet of below average businesses.
What is your favorite “Trump Shock” stock to breakout? Tell us in the comments.