by Louis Navellier
June 30, 2026
I am always on the lookout for new technology stocks, so I attended a conference on UAP (Unidentified Anomalous Phenomena, once known as UFOs, or Unidentified Flying Objects) in Washington DC.
My main goal was to learn which defense contractors may be striving to duplicate UAP technology for aerospace, energy and telecommunications. So far, Carpenter Technologies, Elbit Systems and Howmet Aerospace have been my primary defense contractors, but UAP-UFO enthusiasts have identified a new spy plane with canards (front wings) which apparently emit no exhaust or contrails, and are eerily silent, so whether this is just the new F-47 or an advanced spy plane, the defense industry is clearly developing some fascinating technology, and whether or not it utilizes UAP technology is an interesting question.
I hope to be among the first to find companies developing new and exciting technology, even if it is not “of this world.” These UAP-UFO disclosures will likely continue, and it will be very interesting to see if there are other life forms somewhere out there, or near us! In the meantime, we can all watch Steven Spielberg’s “Disclosure Day” film to discuss his version of what may be coming next.
Meanwhile SpaceX is heading back to its launching pad price – as it is now trading close to its IPO opening at $150, another example of Wall Street chasing some companies without earnings growth.
I expect SpaceX shares to further settle down due to insider selling as more shares become unrestricted in the upcoming months. Also, SpaceX is not forecasted to be profitable through 2027, since it is hitching its success to the Starship rocket, their largest reusable rocket meant to launch heavy payloads, like orbital computing centers. I’d say there is no hurry to own any space stocks before they become profitable.
The SpaceX IPO provides investors with a great lesson: When investors steer away from fundamentals in search of some unrealistic gains, their investment results too often become increasingly unreliable.
New Energy Realities Favor U.S. Stocks (over Those in Europe or Asia)
Meanwhile, back on planet earth, there is a debate about how quickly crude oil shipments can replenish the steep decline in oil stockpiles. The Energy Information Agency on Wednesday announced weekly crude oil inventories declined 6.1-million barrels, compared with even bigger drawdowns (8.3-million and 7.2-million) in the previous two-weeks, as we are in the midst of peak summer demand. I recommend two refining stocks this month, since they will be announcing record profits for at least the next couple of quarters due to high prices for diesel, jet fuel and all the petroleum derivatives in high demand.
The U.S. energy boom is no longer shrinking our trade deficit. Specifically, U.S. exports declined 5.4% in May, due partially to lower energy prices, while imports surged 3.6% to their highest level since March 2025. Overall, the trade deficit rose 27.4% in May to $105.8-billion, much higher than the economists’ consensus estimate of $85-billion. Currently, the Atlanta Fed estimates second quarter GDP growth at a 2.5% annual pace, but due to a rising trade deficit, second quarter GDP growth may be revised lower.
This is a good time to remind investors the U.S. remains an economic oasis and is the primary driver of worldwide economic growth. In May, U.S. retail sales surged 0.9%, while China’s retail sales declined 0.6%. China remains haunted by deflationary forces, and a strong dollar means everything we import is getting cheaper due to weak foreign currencies. I fully expect U.S. GDP growth will accelerate to over a 5% annual pace in the third quarter due to robust productivity gains, record energy exports and resurging consumer spending. The good news is these AI-led productivity gains are not likely to be inflationary.
Hopefully, new Fed Chairman Kevin Warsh can persuade ECB’s Christine Lagarde and other skeptics about AI-led productivity gains not posing a threat to economic growth and financial markets. For now, however, the European Union (EU) continues to systematically destroy its domestic auto industry with its emission rules, with a goal to be fully electric by 2035. VW Group is reportedly planning to close four factories and lay off 100,000 workers – as 16% (one in 6) of their workers will be terminated.
In the U.S., we do not have these oppressive emission rules, so VW Group should divert manufacturing to its U.S. plant in Chattanooga or its new Scout Motors plant in South Carolina. Although VW Group makes electric vehicles like the ID.buzz van, it cannot compete with cheaper Chinese EVs sold in Europe.
Second Quarter Earnings Season Should Extend Our Winning Streak
The upcoming second quarter earnings season, commencing in mid-July, is expected to be outstanding! As in most recent quarters, the analyst community has been busily revising earnings estimates higher. Typically, such strong earnings estimates precede future earnings surprises, so I expect July to be a spectacular month. Then markets get bumpy in August, a seasonally weak month when Europe and many institutional investors go on vacation. However, there is no doubt we are in a FOMO (Fear of Missing Out) environment, so every dip remains a buying opportunity. In June, the AI correction lasted only four-days, before memory related stocks like Micron Technology and Seagate Technology made new highs.
Every dip should be viewed as a buying opportunity, since our average AI and data center stock has a 3-year order backlog, which means we could expect spectacular performance through 2029. I realize Europe does not like AI and data-centers but, with the exception of France, which has abundant nuclear power, electricity is simply too expensive for data-centers in most of Europe. Here at home, I am keenly aware the Northeast cities do not like data-centers – and Vermont Senator Bernie Sanders does not want any billionaire to get richer – so he is calling for a ban on data-centers. This is OK by me, since the Northeast data-centers can just go to nearby Pennsylvania. The bottom line is the AI and data center boom cannot be stopped, and the U.S. is leading the worldwide boom, which will persist for at least the next three years!
One of the first impacts of the data storage supply crunch came from Apple, which announced last Thursday it raised the price of its computers and iPads due to the higher price of memory. Apple has not yet raised the price of its iPhones, but price increases may accompany its new iPhones in September.
I believe we are also in the midst of a perfect economic storm which could result in 5% to 6% annual GDP growth in the second half, due to $20-trillion of onshoring underway, AI creating record productivity gains and consumer spending continuing to accelerate, with robust retail sales reports. My plan for the second half of the year is to stay the course, ignoring the overall market indexes and continuing to focus on fundamentally superior stocks.
The U.S. is now the dominant economy in the world. Last week, British Prime Minister Keir Starmer had to resign, because he hurt Britain’s economy with his “tax the rich” policies, plus his futile green energy policies hurting Scotland as well as half of British citizens – who cannot pay their electric bills without government subsidies. Furthermore, Europe continues to be hostile to technology changes, especially AI.
As a result, the U.S is now an economic oasis for the entire world! Enjoy the ride!
Navellier & Associates Inc.; own Micron Technology, Inc. (MU), Apple Inc (AAPL), Elbit Systems Ltd (ESLT), Howmet Aerospace Inc. (HWM) and Carpenter Technology Corporation (CRS), in managed accounts. Navellier does not own Volkswagen (VWAGY) or Space Exploration Technology Corp (SPCX) in managed accounts. Louis Navellier and his family own Micron Technology, Inc. (MU), Apple Inc. (AAPL), Elbit Systems Ltd (ESLT), Howmet Aerospace Inc. (HWM) and Carpenter Technology Corporation (CRS) via a Navellier managed account and Apple Inc. (AAPL) in a personal account. They do not own Volkswagen (VWAGY) or Space Exploration Tech Corp (SPCX) personally.
All content above represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Also In This Issue
A Look Ahead by Louis Navellier
Are We Headed into Space – Or Is “Space” Headed Here?!
Income Mail by Bryan Perry
Decoding Big Tech’s $600 Billion Bet: Is it a Mad Gamble or a Master Plan?
Growth Mail by Gary Alexander
Beware Mid-Term Election Years (But Celebrate What Follows)
Global Mail by Ivan Martchev
The Revenge of the 493
Sector Spotlight by Jason Bodner
Stress Builds Strength – In Humans and in the Markets
View Full Archive
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Louis Navellier
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Louis Navellier is Founder, Chairman of the Board, Chief Investment Officer and Chief Compliance Officer of Navellier & Associates, Inc., located in Reno, Nevada. With decades of experience translating what had been purely academic techniques into real market applications, he believes that disciplined, quantitative analysis can select stocks that will significantly outperform the overall market. All content in this “A Look Ahead” section of Market Mail represents the opinion of Louis Navellier of Navellier & Associates, Inc.
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