With Thanksgiving on Thursday and a shortened trading day on Friday, the markets will start the traditional slow down tomorrow as folks on Wall Street take some time off to spend with family and friends. With the departure from the trading desks, there will come a slowdown in trading volume as well.
In a new research report from Jefferies, they highlight this week’s top growth stocks to buy for the shortened trading week. We screened the list for opportunities that make good sense for the last five trading weeks of 2015.
Adeptus Health
This stock has been absolutely mauled and is down a whopping 50% since late September. Adeptus Health, Inc (NYSE: ADPT) is a leading patient-centered healthcare organization expanding access to the highest quality emergency medical care through its network of freestanding emergency rooms and partnerships with premier healthcare providers.
In Texas, Adeptus Health owns and operates First Choice Emergency Room, the nation’s largest and oldest network of independent freestanding emergency rooms. In Colorado, in partnership with University of Colorado Health, Adeptus Health operates UCHealth Emergency Rooms. In Arizona, with Dignity Health, the company owns and operates Dignity Health Arizona General Hospital and freestanding emergency rooms.
The stock was knocked down big again last week after an article in the press questioned freestanding emergency rooms taking in patients that should be treated in lower acuity settings. The analysts submit this is nothing new and 93% of the company’s patient fall into the 3-5 level acuity silo on a 1-5 acuity basis, which is no different than hospitals with attached ER’s.
The Jefferies analysts see the company delivering a 30% compounded annual growth rate (CAGR) over the next three years. as the firm grows beyond the current three state markets that the currently do business in. The also anticipate strong gains from Medicare/Medicaid reimbursements. The analysts also have the company’s 2017 EBITDA 17% higher than current Wall Street projections.
The Jefferies price target for the stock is $135, and the consensus is at $113.36. The stock closed the day Friday at $55.95.
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Boeing
This top aerospace industrial has just now returned to levels where it was trading before the summer sell-off. The Boeing Company (NYSE: BA) together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital.
The Jefferies team have increased confidence in continuing good demand, and note that the company has recently made announcements that support the analyst’s thesis the productivity and margins will continue to improve. 787 execution is good as the company works through the backlog, and cash flow looks to be strong with 787 deliveries and C-17 orders. Some Wall Street analysts also point to low oil prices as a bullish indicator for the top carriers who are Boeing’s big customers.
Boeing investors are paid a solid 2.45% dividend. The Jefferies price target for the stock is $185, and the consensus price target for the stock is $162.83. The shares closed trading on Friday at $149.40.
PayPal Holdings
This company was recently spun-off from eBay and many on Wall Street think real long-term growth is in the digital payment sector. PayPal Holdings, Inc. (NASDAQ: PYPL) operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. It enables businesses of various sizes to accept payments from merchant Websites, mobile devices, and applications, as well as at offline retail locations through a range of payment solutions across company?s payments platform, including PayPal, PayPal Credit, Venmo, and Braintree products. The company?s platform allows customers to pay and get paid, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies.
The Jefferies team thinks that solid revenue growth over the next fives years is possible and the scarcity value, or lack of competition, could help drive the multiple for the company. Some Wall Street analysts have pointed to the new acquisitions PayPal has made like Venmo and Paydiant that are leveragable with the combination of Paydiant. Many also think that the EBAY separation is likely to help the company’s positioning with large merchants.
The Jefferies analyst noted that while the company only reported in-line numbers and guidance their first time out, the strong secular growth in the payments industry and improved operating margins make the stock a solid buy. They also note that they are not overly concerned about Apple’s recent announcement of their entry into the market especially given Venmo’s entrenched user base and its social media component.
The Jefferies price target is posted at $44, and the consensus is set at $41.67. The shares closed the day on Friday at $36.36.
WisdomTree Investments
This company is financial products up-and-comer and they are carving themselves out an outstanding share with many specialized offerings. Wisdom Tree Investment Inc. (NASDAQ: WETF) through its subsidiaries in the U.S. and Europe is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York.
WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies, and has approximately $60.0 billion in assets under management globally.
Wisdom Tree is run by Jonathan Steinberg, the son of famous Wall Street financier Saul Steinberg. He is also married to Maria Bartiromo who became very famous on CNBC and now works for the Fox Business Network. Steinberg has a long and very distinguished ETF background, going back to the products infancy.
The Jefferies team cites the strong inflows which they think could potentially make current estimates conservative, the company’s solid position in currency hedging and rising rate products, and the overall trend in the market for use of ETFs as positives going forward. They also note that the strengthening U.S. dollar has jumped the inflows and the company is introducing new products at a record pace.
WisdomTree investors are paid a 1.30% divided. The Jefferies price target is $24, and the consensus figure is at $21.19. Shares closed Friday at $21.20.
These stocks have all taken some shots, and while they haven’t all bounced totally back, there is some incredible value there for patient growth investors.
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