Typically when the market has the kind of triple-digit movement like we have experienced so far in 2016, it’s not a good sign. Often, that is the telling sign that a bigger correction is on the way. However, the fact that we have had two 10% corrections in just over six months, after not having one in over three years, kind of softens those worries. One thing that kind of movement does is put outstanding growth stocks at price levels that are very opportune.

This week’s Jefferies research piece examining top growth stocks to buy now features three companies that are offering investors the best entry points in some time, due to some near-term issues. All are rated Buy at Jefferies and are more suited for aggressive growth accounts.

Activision Blizzard

This company reported very mixed fourth-quarter results, but remains a franchise pick at Jefferies. 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, as well as downloadable content to a range of gamers.

The company’s Call of Duty franchise, which has propelled earnings for this industry powerhouse for years, saw its latest launch just in time for the holidays. “Call of Duty: Black Ops 3” was as one of the top-selling games over the three-day Black Friday and the Christmas selling periods.

The big news last fall was the company’s purchase of Candy Crush saga creator King Digital Entertainment, and most of Wall Street think the buy is an outstanding move for the company; specifically the synergies between the two companies is cited. Many analysts feel that the key to unlocking some monster value is creating and cross-promoting the Activision product inside the King Digital mobile distribution network.

The company reported fourth-quarter revenues that came in below consensus expectations as softness in what the Jefferies team calls “casual” brands like Skylanders and Guitar Hero weighed on results. The analysts point out that the company has a half a billion monthly active users, putting it in the ranks behind digital giants like Facebook and YouTube. Trading at a very reasonable 13 times estimated 2016 earnings, the Jefferies analysts are buyers of the stock on the current weakness.

Activision investors are paid a 0.88% dividend. The Jefferies price target for the stock is $45. The Thomson/First Call consensus price target is set at $37.92. The stock closed Wednesday at $29.45 per share.
Qlik Technologies

This is another top stock that is down 50% since last fall. The Qlik Technologies Inc. (NASDAQ: QLIK) QlikView Business Discovery platform lets people quickly bring data sources together to create dynamic visual applications that can be navigated and searched intuitively. QlikView uses natural analytics to reflect the way human curiosity researches and processes information, while delivering the enterprise manageability, governance and service offerings organizations require.

The company’s new Qlik Sense product has helped push the company in the business intelligence and analytic market, but the recent earnings were just in line and guidance was weak, with the company citing soft spending and competition, and the long price decline for the stock has continued. Some analysts feel that the company could be taking business from Tableau Software and they hear that spending is positive.

The company just reported mixed quarterly numbers. While achieving solid year-over-year total and licensing revenue growth of 22% and 21%, respectively, on a constant-currency basis, the adjusted earnings per share decreased 3%. The stock traded down big in response as earnings and 2016 guidance were weaker than analysts had expected.

With the stock trading at the lowest valuation since its initial public offering, and with a strong product upgrade cycle, many analysts believe the next generation products will increase the size of deals. The Jefferies team notes the company beat last year’s first-quarter estimates, and they think seasonality and higher referrals and sales commission played a part in the fourth-quarter earnings miss.

Jefferies has a whopping $38 price target for the stock, while the consensus target is at $31.21. The stock closed Wednesday at $19.55, up over 5% on the day.

WisdomTree Investments

This company remains a real up-and-comer in the exchange traded fund (ETF) business, and it is carving itself out an outstanding share with many specialized ETF offerings. Wisdom Tree Investment Inc. (NASDAQ: WETF) continues to benefit from the movement toward ETFs. This is especially true with the specialized currency hedged products, with the potential for significant uptake in interest rate hedged products.

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 analysts continue to believe that the company is a very possible takeout candidate, and they cite companies like mutual fund giant Franklin Resources as a potential buyer. With sales of traditional mutual funds losing share to index and ETF products, the company could be an easy bolt-on for a big asset manager to secure a solid place in the arena.

WisdomTree investors receive a 2.87% divided. The $15.50 Jefferies price target is greater than the consensus figure of $13.90. Shares closed Wednesday at $11.87, up 6.37%.

These stocks have all taken some shots, and there is some incredible value potential for patient aggressive growth investors. The other nice factor is, given the selling, the downside to these companies is probably somewhat limited.

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