3 Top Jefferies Growth Stocks to Buy After Sell-Off

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The damage was swift and harsh over the past week, and just because things look brighter Tuesday does not necessarily mean the selling is over. However, with the first intra-day 10% correction in over three years in the books, the growling and prowling bears may be quieted for the time being, and it is time for those who do have some dry powder to step in.

In a new report from Jefferies, three top growth stocks hit their screens and they all have substantial upside potential for aggressive growth investors. The Jefferies team has a top tech and biotech company, and a 2014 IPO that has taken a beating and could be poised for big upside.

Intuit

This company has been on a roll this year and hits all the metrics in the technology sector. Intuit Inc. (NASDAQ: INTU) is a company that loves income tax time, as its TurboTax product is one of the most widely used, and sales are expected to be very solid once again this year. The company is also well-known for the QuickBooks line of accounting software, which is used by firms big and small. Intuit announced earlier this year it is launching QuickBooks Online Self-Employed, a new product that makes it easy for the rapidly expanding population of freelancers and independent contractors to handle small business accounting. Some 43% of workers are expected to be self-employed by 2020.

Intuit has served small businesses and accountants with QuickBooks for more than 20 years. The company was an early innovator in cloud accounting when it first launched QuickBooks Online in 2001. The company recently announced that QuickBooks Online has more than a million paying subscribers, cementing its market leadership as small businesses shift to the cloud.

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The Jefferies team liked the fiscal fourth-quarter numbers, and QuickBooks Online beat consensus expectations. While guidance was below expectations, the switch to subscriber model was the culprit, and with expectations ratcheted down, investors have a tremendous entry point.

Intuit investors are paid a 1.42% dividend. Jefferies has a big $115 price objective. The Thomson/First Call price target for the stock is 103.93. The stock closed Monday at $84.25, down almost 6%.