More and more, the companies that we cover on Wall Street are starting to agree that while the future’s still bright for the U.S. economy, the future may be one of stock market gains that are much lower than the norm has been over the last 10 years. When that is the case, then investing strategies often shift from indexing to a more disciplined stock picking routine, and that’s when investors need solid growth ideas.
Jefferies highlights the firm’s top growth stocks to buy each week, and this week is no exception. While these companies are better suited for accounts that have a higher risk tolerance, they all make good sense now, and all have outstanding upside potential. We found four that look extremely good now, and they are among Jefferies top U.S. Growth Calls for this week.
The search giant has been under pressure as there have been calls for Congress to break-up the big tech leaders. Alphabet Inc. (NASDAQ: GOOGL) is a global technology company focused around key areas, such as search, advertising, operating systems and platforms, enterprise and hardware products.The Company generates revenue primarily by delivering online advertising and by selling apps and contents on Google Play as well as hardware products.The Company provides its products and services in more than 100 languages and in 190 countries, regions, and territories.
Alphabet offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, such as Virtual Reality.
Google has outlined expanding capabilities to facilitate commerce, capitalizing on the “treasure trove” of data provided by seven different properties each with at least one billion active users (Android, Search, Chrome, Maps, Play, YouTube, and Gmail). Smart shopping campaigns leverage machine learning to make sense of touch points along the consumer purchase path, including better offline attribution capabilities (locally-oriented searches +200% over the last two years) and improved purchase conversion rates (20% on average).
The Jefferies team said this about the tech Goliath’s potential antitrust issues:
We hosted a conference call with an antitrust focused legal expert this week. Our expert noted that the breakup scenarios for mega cap tech companies is unlikely, and that actual regulation action would likely take more than just a few years. In order to make a case, regulators need to prove that the target company has: 1) gained or maintained monopoly through unlawful practices or 2) a past merger substantially decreased competition. US regulators focus on “consumer welfare” so it might be hard to argue that lower prices or better products are hurting consumers.
The Jefferies price target is posted at $1450, and the Wall Street consensus is set at $1343.80 The shares closed Friday at $1086.30.
This company has big upside potential for investors with only a moderate risk profile. FibroGen, Inc. (NASDAQ: FGEN) engages in the discovery, development, and commercialization of therapeutics. It focuses on hypoxia-inducible factor and connective tissue growth factor biology to develop innovative medicines for the treatment of anemia, fibrotic disease, and cancer.
Fibrogen is focused on the discovery, development and commercialization of novel therapeutics to treat serious unmet medical needs.The company has capitalized on extensive experience in fibrosis and hypoxia-inducible factor (HIF) biology to generate multiple programs targeting various therapeutic areas.