Increasingly, the top brokerage firms and banks that we cover on Wall Street are starting to agree that while the future is still bright for the U.S. economy, it may be one of stock market gains that are much lower than the norm has been over the past 10 years. When that is the case, investing strategies often shift from indexing to a more disciplined stock-picking routine. That’s when investors need solid growth ideas.
Jefferies highlights its top growth stocks to buy each week, and this week is no exception. While these stocks are better suited for accounts that have a higher risk tolerance, they all make good sense now, and they have outstanding upside potential. These four look extremely strong now.
This remains a top video gaming pick on Wall Street and Jefferies is still very positive on the shares. 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.
Shares of the gaming giant have been volatile and are down a stunning 45% from highs posted last fall. Some recent positive announcements could be meaningful for the stock to regain traction. The analysts said this:
Our early checks on downloads, player checks and online ratings are suggestive of a successful initial launch of CoD Mobile. CoD mobile is the top free iOS app in 77 countries and early reviews look overwhelmingly positive, with CoD mobile achieving a 4.8 star rating on the app store and Spiketrap sentiment data indicating a score of 75 out of 100. Longevity will be key as some mobile games from others have started strong and then fizzled. We conservatively estimate $250 million in CoD mobile bookings in 2020 estimated. The mobile version should also help the company expand its foothold in Asia, which accounted for just 8% of segment net revenue in 2018.
Activision pays investors a small 0.73% dividend. Jefferies has a $65 price target on the shares, while the Wall Street consensus target is lower at $57.03. The stock was last seen on Friday trading at $55.44 a share.
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.
The company’s acquisition of privately held CardiAQ a few years ago has proven to be a very successful addition. 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 also has 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.