After a stunning rally off the lows caused by the Brexit, it looks as though the market feels a little tired. Tuesday’s selling, while calm, shows that investors are still nervous over the potential for some disruption by the vote in the United Kingdom, and Wednesday looks like it will be more of the same. One thing is for sure, valuations will be more and more important as we tackle the second half of 2016, and it makes sense to shop for growth stocks with low multiples and solid upside potential.

A recent research report from Jefferies highlights top growth stocks to buy that make very good sense for the rest of the year. They have traded lower for numerous reasons, and all are offering investors top quality companies and bargain price entry levels. They are rated Buy at Jefferies.

Acadia Healthcare

This company could have a revenue explosion over the next three years if the Jefferies team is right. Acadia Healthcare Co. Inc. (NASDAQ: ACHC) is a provider of in-patient behavioral health services. Acadia operates a network of 226 facilities with approximately 9,200 beds in 37 states, the United Kingdom and Puerto Rico. Acadia provides psychiatric and chemical dependency services to its patients in a variety of settings, including in-patient psychiatric hospitals, residential treatment centers, outpatient clinics and therapeutic school-based programs.

The company posted stellar earnings last year, and Jefferies thinks that its revenues can double in three years, owing to not only strong organic growth, but potential acquisitions. Also cited in the past was that analysts believe political support for expanded Medicaid coverage for adult mental health could grow the company’s addressable market by up to 30%.

The firm also noted that the stock was punished after the Brexit, as 40% of EBITDA is from the United Kingdom and concerns over the country leaving the European Union weighed heavily on shares last week. The analysts expect organic growth to remain strong, and recent meetings with management has made them even more positive on the stock.

The Jefferies price target is $85, and the Thomson/First Call consensus figure is posted at $79.27. The stock closed Tuesday at $52.50, down almost 4% on the day.

Celgene

This company was one of the top Jefferies biotech picks for 2016. Celgene Corp. (NASDAQ: CELG) has an outstanding partnered pipeline, which most think is low risk and has the potential to yield several blockbuster drugs. Certain Wall Street analysts also think the company can grow earnings 15% on a compounded annual growth rate basis going forward. Otezla, which treats psoriasis and psoriatic arthritis, had achieved considerable prescriptions among physicians, but the scripts have slowed after a solid launch, showing the importance for sales outside of the United States.

Celgene’s blockbuster blood cancer drug Revlimid continues to dominate. Pomalyst sales also continue to be solid. Cancer drug Abraxane is also growing at a respectable rate, so the company continues to have a strong lineup of top-selling drugs.

The stock jumped recently when Celgene and Natco came to a patent settlement, which removed a huge overhang on the stock that has been there for some time. Revlimid makes up over 60% of the company’s total revenue, and the analysts note that the company has discussed at its recent conference the benefits of longer duration Revlimid. They also note that Celgene has a very compelling pipeline, and the Brexit should have little impact on the biotech sector as a whole.

The Jefferies price target is $140. The consensus target is higher at $136.38. The shares closed Tuesday at $100.25.
Nike

This stock was hit hard when a good earnings report came with guidance well below estimates. Nike Inc. (NYSE: NKE) is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities.

Wholly owned Nike subsidiaries include Converse, which designs, markets and distributes athletic lifestyle footwear, apparel and accessories, and Hurley International, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories. With one of the most recognizable brands in the world, long-term investors may do very well adding shares here despite the big move up in the stock this year.

Nike is benefiting from consumer preferences for “athleisure.” With its extensive product line and recognizable worldwide branding, the stock continues to roll year after year. Driven by its digital business as well as inline and factory stores, Nike now anticipates achieving $16 billion in revenue by the end of fiscal year 2020. Over the next five years incremental growth in Nike Brand Direct to Consumer (DTC) revenues is expected to be driven by e-commerce sales, which are projected to grow to $7 billion. The company also expects to drive wholesale growth in the mid-to-high single-digit range over the next five years.

Jefferies cites spending on brand initiative and some currency headwinds as contributing to the less than expected forward outlook. They caution the stock could be weak for a while but noted that futures were up 17% and the long-term prospects for the shoe and apparel giant remain positive.

Investors are paid a 1.15% dividend. The Jefferies price target is $65, and the consensus target is at $66.81. Nike closed at $55.20 on Tuesday.

Priceline

This internet travel leader was a big 2015 second-half laggard and took a huge leg down earlier this year before rebounding sharply. Priceline Group Inc. (NASDAQ: PCLN) operates Booking.com, which provides online accommodation reservation services, as well as Priceline.com, which offers hotel, rental car and airline ticket reservations services, as well as vacation packages and cruises through its Name Your Own Price and Express Deals travel services. It also operates Agoda.com, an online accommodation reservation service for consumers in the Asia-Pacific region, and RentalCars.com, which offers car rental reservation services.

Trading at a low 16 times fiscal year 2017 earnings estimates, the travel giant is seen by many Wall Street analysts as an “open-ended” growth story. Many on Wall Street continue to see comparisons easing for international bookings and margins will improve in the second half of the year and into 2017.

The stock was hit hard last week, down 11% on exposure to the euro, but Jefferies note that the company has previously disclosed that its expenses are generally denominated in foreign currencies on a basis similar to its revenues, meaning that operating margins aren’t significantly affected by currency fluctuations. Growth is very strong at Priceline, with the total number of properties on the site up 40% at the end of June, and the number of vacation rentals up 54%.

The Jefferies price objective is a massive $1,660, and the consensus target is posted at $1,469.62. The shares closed on Tuesday at $1,275.03.

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Four top companies on sale that all are very well positioned in their respective sectors. While more suited for aggressive growth accounts, they all look like outstanding buys for the second half of 2016.

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