Veteran investor, CIO and founder of Navellier & Associates, Louis Navellier, has warned against chasing the recent “junk rally” in low-quality stocks, urging investors to pivot back to stocks with strong earnings growth as the 2026 financial year begins.

A ‘Big Flip’ Back To Quality

In his latest Navellier Market Buzz video, Navellier argued that the fourth-quarter mean reversion—where the worst-performing stocks suddenly led the market—is unsustainable.

He believes January will mark a “big flip” where quality companies, which he defines as those with accelerating sales and earnings, will reassert their leadership.

He cited an intraday explosion in data center stocks on the first trading day of January as evidence that institutional buying pressure is already returning to this sector.

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Top Picks For Earnings Season

Navellier is positioning his portfolio ahead of what he calls “judgment day” for corporate earnings. He argues that data center demand ...