The markets continued the large up-and-down pattern Tuesday with a strong surge higher. With many on Wall Street thinking that a rate increase has been pushed to December, and the Chinese currency devaluation and slow-down now largely priced in, this could be the time to add solid growth stocks to an aggressive portfolio.
In a recent research report, Jefferies has some top growth stock calls that the firm feels have outstanding upside potential for fall trading. We screened the stocks for those that are the “less-crowded” trades on Wall Street.
This company pioneered the artificial heart valve and could be poised for big growth. Edwards Lifesciences Corp. (NYSE: EW) provides products and technologies to treat structural heart disease and critically ill patients worldwide. The company offers transcatheter heart valve therapy products comprising transcatheter aortic heart valves and their delivery systems for the nonsurgical replacement of heart valves. The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral replacement and minimally invasive aortic heart valve systems, as well as tissue heart valves and repair products, which are used to replace or repair a patient’s diseased or defective heart valve.
The Jefferies team thinks that the company’s acquisition of privately held CardiAQ makes good sense going forward. CardiAQ has human implants of transcatheter mitrial valves, and Edwards is focused on the mitrial valve opportunity after their very strong success in aortic valves. The company also has had tremendous success with transcatheter valve replacement. Transcatheter heart valve replacements are rapidly gaining favor in the medical community for use in those patients who are deemed unsuited for open heart surgery, and they are a fast-growing revenue stream for the company.
The Jefferies price target for the stock, which is only up 3% this year, is $180. The Thomson/First Call consensus price target is $171.40. The stock closed Tuesday at $139.68.