Jefferies Top Growth Stocks to Buy Posted Awesome Q1 Results


This stock has long been a Jefferies favorite and it continues to deliver solid results. PayPal Holdings Inc. (NASDAQ: PYPL) operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide.

PayPal enables businesses of various sizes to accept payments from merchant websites, mobile devices and applications, as well as at offline retail locations through a range of payment solutions across company’s payments platform, including PayPal, PayPal Credit, Venmo and Braintree products. Its platform allows customers to pay and get paid, withdraw funds to their bank accounts and hold balances in their PayPal accounts in various currencies.

The analysts noted this in their report:

PayPal reported first quarter results last week, beating expectations and raising fiscal year earnings-per-share guidance ahead of our and consensus estimates. The Company was able to offset transition margin pressure with operating expense leverage. Company added 6 million active accounts, the highest number in several years.

The $52 Jefferies price objective compares with the consensus target price of $50.08, as well as the most recently closing price of $47.72 a share.

Under Armour

This is apparel leader has struggled mightily over the past year and finally may be turning the corner. Under Armour Inc. (NYSE: UAA) bills itself as the originator of performance footwear, apparel and equipment that has revolutionized how athletes across the world dress.

Designed to make all athletes better, the brand’s innovative products are sold worldwide to athletes at all levels. The Under Armour Connected Fitness platform powers the world’s largest digital health and fitness community through a suite of applications: UA Record, MapMyFitness, Endomondo and MyFitnessPal.

The company finally gave shareholders are positive earnings release, and Jefferies noted this in the report:

The Company posted a beat with top-line growth meeting expectations, better than expected gross margins and fewer apparel markdowns. Under Armour reaffirmed its prior annual guide and expects 11-12% revenue growth versus the Street currently at 10.9%. Our store checks, web scrapes and survey work continues to support our thesis that an inflection is forming.

The Jefferies price target is $28. The consensus target is $21.26, and the shares closed most recently at $21.49.

These four top stocks to buy range from a tech behemoth to a rebounding top apparel stock. All of them offer decent value in a very pricey stock market. These stocks are best suited for aggressive growth accounts with reasonable risk tolerance.