With the Memorial Day holiday kicking off the unofficial start of summer, we certainly could have three of the most exciting months we have seen in a while. With the potential for numerous headline catalysts issues, all of which could heighten volatility, investors may want to take a good look at their current growth stock holdings and see if they are positioned right. At 24/7 Wall St., we are continuing to look through our vast resources of research for top stock picks to buy now.
In a recent research report, Jefferies is out with its top growth stock calls to kick off June, and we found three that look very attractive now and that also seem to have outsized upside potential. It should be noted that these are aggressive plays that are only suited for accounts styled that way.
This company reported very solid first-quarter quarter results and remains a top pick on Wall Street. Activision Blizzard Inc. (NASDAQ: ATVI) develops and publishes online, personal computer (PC), video game console, handheld, mobile and tablet games worldwide.
The company develops and publishes interactive entertainment software products through retail channels or digital downloads and downloadable content to a range of gamers. The company’s Call of Duty franchise, which has propelled earnings for this industry powerhouse for years lead a strong product inventory along with other favorites like Skylanders and Guitar Hero.
The big news last fall was the company’s purchase of Candy Crush saga creator King Digital Entertainment, and most of Wall Street think the buy is an outstanding move for the company and specifically the synergies between the two companies is cited. Many analysts feel that the key to unlocking some monster value is creating and cross-promoting the Activision product inside the King Digital mobile distribution network.
Some analysts feel the company could earn up to $3 per shares by 2018 if it can optimize the King Digital advertising opportunities and unlock synergies. Jefferies notes that the new Overwatch game, with a current 94 review score, is the second highest reviewed game in a decade, and while most estimate 5 million to 7 million units, a 10 million unit sales number could add huge revenue. It is important to note that 23% of the shares come unlocked on June 8.
Shareholders are paid a small 0.67% dividend. The Jefferies price target for the stock is $45, and the Thomson/First Call consensus price target is lower at $42.32. The stock closed most recently at $38.65.