Jefferies Biotech and Health Care Momentum Stocks to Buy With Big Upside Potential

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NuVasive

This has been a popular name for years when it comes to potential merger or takeover chatter. NuVasive Inc. (NASDAQ: NUVA) is an innovative global medical device company that is transforming spine surgery with minimally disruptive surgical products and procedurally integrated solutions for the spine.

NuVasive has emerged from a small startup to become the number three player in the $9 billion global spine market and remains focused on market share-taking strategies as the company continues on its path to become the industry’s leading spine company. NuVasive offers a comprehensive spine portfolio of more than 90 unique products developed to improve spine surgery and patient outcomes. Its principal procedural solution is its Maximum Access Surgery, a platform for lateral spine fusion.

The company has been on an earnings surprise roll, and many top analysts on Wall Street think that could continue this quarter. NuVasive has posted a nice streak of beating earnings estimates, especially when looking at the previous two quarters, when it topped estimates by at least 10%. The trend looks like it could continue when the company reports on October 26.

The $75 Jefferies price target compares with the consensus target, which is set at $71.69, and the most recent closing share price of $66.23.

Patheon

This company recently hit our insider buying screens in a big way, and that’s a positive for shareholders. Patheon Holdings N.V. (NYSE: PTHN) provides outsourced pharmaceutical development and manufacturing services. The company offers a range of active pharmaceutical ingredient and finished drug product services, including formulation development, as well as clinical and commercial-scale manufacturing, packaging and life-cycle management. It caters to small molecule and large molecule biological drug sectors.

The company reported outstanding third-quarter 2016 revenue, which was an 8% increase compared to the third quarter of the previous year. The increase was driven by continued growth in the underlying business across the entire network, both in the United States and abroad. And note that revenue in the third quarter of 2015 included $15 million related to a business that was spun off from Patheon in July of 2015. Excluding the 2015 BLS revenue, the growth was 11% on a year-over-year basis.

The Jefferies price target is set at $35, while the consensus target is lower at $32.75. Shares closed trading on Monday at $28.05 apiece.

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These four solid stocks could show some solid price momentum, especially with earnings season upon us. While they are all more suited for accounts with a higher risk tolerance, they are all established companies with sizable track records.