Investing

Top Strategist Has 5 Growth Stock Portfolio Buys to Add Now

Lee Jackson
Edwards Lifesciences

This company pioneered the artificial heart valve, and it 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 system, as well as tissue heart valves and repair products, which are used to replace or repair a patient’s diseased or defective heart valve.

Top Wall Street analysts feel that the company’s acquisition of privately held CardiAQ last year made good sense going forward. CardiAQ has human implants of transcatheter mitrial valves, and Edwards is focused on the mitrial valve opportunity after its very strong success in aortic valves.

The company has also had tremendous success with transcatherter valve replacement. These 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 $136 Jefferies price target compares with the consensus target of $132.30. The stock closed trading last Friday at $123.91.

Mohawk Industries

This company has benefited from the strong housing market and is also a beneficiary of massive rebuilding after a year of natural disasters. Mohawk Industries Inc. (NYSE: MHK) is a leading building products company, manufacturing and selling flooring products such as carpets, rugs, ceramic tile, wood, stone, luxury vinyl tile and vinyl flooring. The company believes it is the world’s largest flooring company, with operations in 10 countries.

The company sells flooring products under the Aladdin, Columbia Flooring, Durkan, Horizon, IVC, Karastan, Mohawk, Pergo, Portico, QuickStep and SmartStrand brands. The Flooring ROW segment provides laminate and hardwood flooring, as well as roofing elements, insulation boards, medium-density fiberboards, chipboards and vinyl flooring products under the IVC, Moduleo, Pergo, Quick-Step and Unilin brands, and it licenses patents related to flooring manufacturers.

Jefferies has set a massive $345 price target for the shares. The consensus target is $302.83 a share. The stock closed last Friday at $279.14 per share.

Take-Two Interactive Software

This is a top video game producer that has cashed in with some super-hot titles. Take-Two Interactive Software Inc. (NASDAQ: TTWO) is a publisher and distributor of interactive software for gaming platforms from Sony and Microsoft and for the PC. The company is headquartered in New York, with development studios located around the world. Key franchises include Grand Theft Auto, Red Dead, Civilization, Borderlands, and Bioshock, as well as several licensed sports products such as NBA and WWE.

Top analysts are forecasting software compounded annual growth rates of an astonishing 9% between last year and 2019, and Take-Two soundly beat fiscal second-quarter estimates and raised the fiscal year 2018 outlook as Grand Theft Auto and NBA2K drove a very strong digital quarter. The fiscal 2019 outlook is looking increasingly conservative given the fiscal 2018 digital upside. Toss in a solid holiday selling season and the picture remains bright.

The Jefferies price target is $140. The consensus price objective is $126.58, and shares ended last week at $118.05 apiece.

Five companies that not only match up with the top Jefferies themes for this year but hit all the required metrics to be top picks for 2018. These stocks are best suited for accounts with a longer term horizon that also have a higher risk tolerance.