The third quarter is now underway, and with earnings season starting this week analysts will be closely monitoring reports from companies to see how business was in the second quarter. With a ton of companies reporting over the next three weeks, and the markets definitely expecting the worst from Greece, stocks investors need to tread carefully when looking for new ideas. Some analysts on Wall Street are aggressively touting energy stocks.

A new report from Jefferies highlights the firm’s top growth stocks to buy. Two are new initiations and could make good sense for aggressive investors with capital to put to work in search of fresh ideas.

Anacor Pharmaceuticals

Anacor Pharmaceuticals Inc. (NASDAQ: ANAC) is a biopharmaceutical company focused on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. Anacor’s first approved drug, Kerydin (tavaborole) topical solution, 5%, is an oxaborole antifungal approved by the U.S. Food and Drug Administration in July 2014 for the topical treatment of onychomycosis of the toenails. In July 2014, Anacor entered into an exclusive agreement with Sandoz, a Novartis company, pursuant to which PharmaDerm, the branded dermatology division of Sandoz, distributes and commercializes Kerydin in the United States.

ALSO READ: 4 Utilities Deutsche Bank Loves for Their High Yields

Anacor’s lead product development candidate is AN2728, an investigational non-steroidal topical PDE-4 inhibitor for the potential treatment of mild-to-moderate atopic dermatitis and psoriasis. Beyond Kerydin and AN2728, Anacor has discovered three investigational compounds that it has out-licensed for further development.

The analysts feel that the potential value that could be awarded to AN2728 given updated pricing assumptions and various net sales forecasts is huge. Their analysis suggests that if the drug achieves $1 billion in peak sales, shares of Anacor could be worth $100 or more. With Phase 3 data due out next month, the potential for investors is huge if the data is positive.

The Jefferies price target for the stock is raised from $70 to $80. The Thomson/First Call consensus price target is $75. The stock closed trading most recently at $78.59.
Organovo

This stock is initiated at a Buy rating and slipped recently as a result of a secondary stock offering. Organovo Holdings Inc. (NYSEMKT: ONVO) designs and creates functional, three-dimensional human tissues for medical research and therapeutic applications. The company develops 3D human disease models through internal development and in collaboration with pharmaceutical and academic partners. Organovo believes these 3D human tissues have the potential to accelerate the drug discovery process, enabling treatments to be developed faster and at lower cost.

The Jefferies analysts feel that the company’s 3D printed human tissues offer clear advantages over current traditional methods for drug discovery and toxicology testing. They report that Organovo’s first commercial products for the liver uptake has been positive and they have been getting solid interest from top major pharmaceutical companies in recent years. The analysts also think that the liver and kidney could each be $100 million plus products on very minimal penetration.

ALSO READ: The Best and Worst Performing Stocks of 2015

The Jefferies price target for this very interesting but very aggressive stock is $5, and the consensus is posted at $5.33. Shares ended last week at $3.74.

TEGNA

This company is the broadcasting and digital business of the former Gannett. TEGNA Inc. (NYSE: TGNA) spun off the publishing unit of the company to shareholders, which will continue to be called Gannett, and includes such properties as the well-known USA Today newspaper. Gannett now provides content through the flagship USA Today and will also include 92 local U.S. daily publications. TEGNA continues to own and service 46 television stations and its digital business consists of several other well-positioned and growing online companies such as Cars.com and CareerBuilder, among others.

The Jefferies analyst feel the after spinning off the publishing business, the company is in a tremendous position versus peers as they see the marriage of the broadcasting and the digital segment offering high-growth potential and outstanding free cash flow. They also highlight political ad spending next year as a huge positive for earnings with the company’s presence in six key swing states.

TEGNA investors are paid a solid 2.52% dividend. The Jefferies price target for the stock is $35, and the consensus is at $37.38. Shares closed at $31.75.

ALSO READ: 5 Oil and Gas Stocks Analysts Want You to Buy Now

The Jefferies growth calls are very aggressive and are only for accounts that are styled that way. However, they also have big upside potential and could be trading much higher than current targets if all the current potential is met or exceeded.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.