With the Memorial Day holiday kicking off the unofficial start of summer, we certainly could have three of the most exciting months we have seen in a while. With the potential for numerous headline catalysts issues, all of which could heighten volatility, investors may want to take a good look at their current growth stock holdings and see if they are positioned right. At 24/7 Wall St., we are continuing to look through our vast resources of research for top stock picks to buy now.

In a recent research report, Jefferies is out with its top growth stock calls to kick off June, and we found three that look very attractive now and that also seem to have outsized upside potential. It should be noted that these are aggressive plays that are only suited for accounts styled that way.

Activision Blizzard

This company reported very solid first-quarter quarter results and remains a top pick on Wall Street. 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. The company’s Call of Duty franchise, which has propelled earnings for this industry powerhouse for years lead a strong product inventory along with other favorites like Skylanders and Guitar Hero.

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 and 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.

Some analysts feel the company could earn up to $3 per shares by 2018 if it can optimize the King Digital advertising opportunities and unlock synergies. Jefferies notes that the new Overwatch game, with a current 94 review score, is the second highest reviewed game in a decade, and while most estimate 5 million to 7 million units, a 10 million unit sales number could add huge revenue. It is important to note that 23% of the shares come unlocked on June 8.

Shareholders are paid a small 0.67% dividend. The Jefferies price target for the stock is $45, and the Thomson/First Call consensus price target is lower at $42.32. The stock closed most recently at $38.65.
Edwards Lifesciences

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.

Jefferies thinks that the company’s acquisition of privately held CardiAQ made good sense. 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 transcatheter valve replacement. Transcatheter heart valve replacements 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.

Edwards Lifesciences posted very solid quarterly numbers, and the analysts noted more centers were adopting transcatherter aortic valve replacement, and the number of procedures is increasing. U.S. sales grew 50%, versus the 35% posted last quarter. In addition, the PARTNER II data came out and showed superiority over surgery at the primary endpoint.

Jefferies has a $125 price target for the stock. The consensus figure is set at $118.36. The stock closed Wednesday at $98.84 per share.

Neurocrine Biosciences

This company is partnering with a top big pharmaceutical company, and the data has been very solid. Neurocrine Biosciences Inc. (NASDAQ: NBIX) discovers and develops innovative and life-changing pharmaceuticals, in diseases with high unmet medical needs, through its novel research and development platform, focused on neurological and endocrine based diseases and disorders.

The company’s two lead late-stage clinical programs are elagolix, a gonadotropin-releasing hormone antagonist for women’s health that is partnered with AbbVie, and valbenazine, a vesicular monoamine transporter 2 (VMAT2) inhibitor for the treatment of movement disorders. Neurocrine intends to maintain certain commercial rights to its VMAT2 inhibitor for an evolution into a fully integrated pharmaceutical company.

Jefferies recently hosted an investor event with an industry expect to discuss the KINECT 3 data. The expert believes that both valbenazine and a competing company’s drug are superior to current standard of care. Both drugs offer safety advantages, but there is a debate about whether the drugs will have black box warnings, which the current drug does. The analysts feel that Valbenazivne is still on track for an NDA filing this year, and the Jefferies team sees a $1 billion potential for the drug, on which many of the doctors they recently surveyed were very constructive.

The $61 Jefferies price target is lower than the consensus target of $67.13, but the stock closed Wednesday at $49.60.

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Again, while more prudent for aggressive growth accounts, these stocks have very good upside potential, and they also have upcoming catalysts that could drive the upside.

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