As we get closer to second quarter earnings, many investors on Wall Street and Main Street are starting to concentrate on having stocks in portfolios that can not only hit or beat the forecast numbers, but provide solid guidance for the balance of the year. Jefferies pointed out in a new report that lower expectations and a history of beating estimates, despite a possible year over year earnings decline of 2% in the quarter, the potential for the market to go higher in July is solid.
The Jefferies team is out with this week’s top U.S growth stock picks. 24/7 Wall St. screened for the stocks with the best upside to the Jefferies price targets. They include a very contrarian call they may not be for the faint of heart
This is a high profile old-school software company that makes sense for growth investors. Adobe Systems Incorporated, Inc. (NASDAQ: ADBE) operates in three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content.
The Digital Marketing segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized. This segment provides analytics, social marketing, targeting, media optimization, digital experience management, and cross-channel campaign management solutions, as well as video delivery and monetization to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers.
The Print and Publishing segment offers products and services, such as eLearning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses. There was some controversy surrounding around the guidance the company issued following earnings last week, and the Jefferies team thinks that any weakness in the stock is a buying opportunity, continue to like the secular growth in creative/multimedia demand
Adobe is also reasonably safe route for investors looking to own a company with Marketing Automation product, which has become huge. The Jefferies price target for the stock is posted at $90. The Thomson/First Call consensus price target for the stock is set at $87.83. Shares closed on Friday at $79.70.
Eli Lilly & Co.
This stock checks in high on the Jefferies global pharmaceutical list. Eli Lilly and Company (NYSE: LLY) is somewhat surprisingly out of consensus with portfolio managers at mutual fund and hedge funds, or what is known as the buy side. It also has more neutral ratings than buy ratings on Wall Street.
The company easily beat analysts’ earnings expectations for the first quarter, reporting earnings of 87 cents per share that topped guidance of 76 cents per share by 11 cents. Revenues for the period declined 1% to $4.65 billion, but were still enough to top analysts’ $4.63 billion expectations.