Jefferies Out With Top Small Cap Growth Picks for 2019

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Green Dot

This smaller cap company is somewhat off the radar but offers solid growth potential. Green Dot Corp. (NYSE: GDOT) is a pro-consumer bank holding company and financial technology innovator that engages in the provision of prepaid cards, debit cards, checking accounts, secured credit cards, payroll debit cards, consumer cash processing services, wage disbursements and tax refund processing services.

The company operates through Account Services and Processing and Settlement Services segments. The former segment offers deposit account programs that can be acquired through omnichannel distribution platform. The latter segment comprises products and services that all specialize in facilitating the movement of funds on behalf of consumers and businesses.

Jefferies has a $100 price target. The consensus price target is $94.69, and the stock closed trading on Wednesday at $75.74.

Trade Desk

This stock had a red-hot initial public offering in 2016 and has been steadily moving higher over the past two years, but the recent sell-off offers aggressive accounts an outstanding entry point. The Trade Desk Inc. (NASDAQ: TTD) provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally.

The company’s platform allows clients to manage integrated advertising campaigns in various advertising channels and formats, including connected TV, mobile, video, audio, display, social, and native on various devices, such as smart TVs, computers, and mobile phones and tablets.

The $150 Jefferies price objective compares to the $131.47 consensus target and the most recent close at $110.81 a share.

Ulta Beauty

If there is any stock to own in the discretionary sector, this may be the one. Ulta Salon Beauty Inc. (NASDAQ: ULTA) is a holding company for the Ulta Beauty group of companies. It is a beauty retailer that offers cosmetics, fragrance, skin care, hair care products and salon services. The company offers approximately 20,000 products from over 500 beauty brands across all categories, including its own private label. Ulta Beauty also offers a full-service salon in every store featuring hair, skin and brow services.

Ulta Beauty operates approximately 970 retail stores across over 48 states and the District of Columbia and also distributes its products through its website, which includes a collection of tips, tutorials and social content. The company offers makeup products, such as foundation, face powder, concealer, color correcting, face primer, blush, bronzer, contouring, highlighter, setting spray, shampoos, conditioners, hair styling products, hair styling tools and perfumes.

Jefferies has set its price target at $335. The consensus price objective is $318.95, and the shares closed Wednesday at $242.20.

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These five outstanding stock picks from Jefferies all have solid upside to the firm’s price targets. While better suited for more aggressive growth accounts, they all look like good picks for 2019 and beyond.