Increasingly, the Wall Street firms we cover agree that while the future is still bright for the U.S. economy, despite the current issues, the next five years may be one of stock market gains much lower than the norm has been over the past 11 years. When that is the case, then investing strategies often shift from indexing to more disciplined stock picking. That’s when investors need solid growth ideas.

Jefferies highlights the firm’s top growth stocks to buy each week, and this week is no exception. The team has reviewed the outlook for second-quarter results, and they are very positive on some of the biggest and most powerful technology and momentum giants. We found four that look like solid picks for more aggressive growth investors.

While all these stocks are rated Buy at Jefferies, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Amgen

This biotech giant remains a top stock for investors to buy and a safe way to play the massive potential growth in biosimilars. Amgen Inc. (NASDAQ: AMGN) has been a biotechnology pioneer since 1980 and has grown to be one of the world’s leading independent biotech companies. It has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential.

Amgen develops, manufactures and markets biologic therapies for oncology and inflammation. The company’s five key marketed products are among the top-selling pharmaceutical products in the world, with expected collective revenues of more than $25 billion in 2020.

Jefferies has remained bullish for years and noted this:

We were out with a second quarter preview for large cap biotech, and expect the quarter to mark the COVID-related bottom. With that likely well-understood, we believe the key takeaway for investors will be largely positive results, demonstrating resilience of biotech during COVID, and realigning focus on pipelines and key readouts in second half. That said, we think Amgen could either: 1) raise its 2020 guidance or 2) tighten it towards the upper-end, given the recent Enbrel appeal decision favoring Amgen increases sales visibility as early as 2020.

This is consistent with our thesis that the company could see inflows in the second half due to: 1) pivotal phase 2 AMG510 KRAS lung cancer topline data around Sep/Oct; 2) Phase 3 tezepelumab asthma data year-end 2020 and 3) Phase 3 omecamtiv heart failure data.

Shareholders receive a 2.44% dividend. The Jefferies price target is $285, and the Wall Street consensus target is $256.08. Amgen stock closed Tuesday at $257.91 a share.

Haemonetics

This has been touted as a potential takeover target, as it may be a very solid fit for a big medical devices player. Haemonetics Corp. (NYSE: HAE) provides products for processing, handling and analysis of blood.

The company offers plasma collection and storage products, including PCS brand plasma collection equipment and disposables, plasma collection containers and intravenous solutions, as well as information technology platforms for plasma customers to manage their donors, operations and supply chain.

Jefferies has remained positive for years on this one as well and said this:

We were out with an update ahead of fiscal first quarter earnings. We expect investors to be focused on: 1) NA plasma volume growth impacts from Covid-19; 2) NexSys performance; 3) the trajectory of savings following recent divestitures and 4) early views on potential Ig competition. While our cellphone foot traffic data showed that pings trended down 30-60% year over year in the April-June time-frame, monthly traffic was +18% in June vs. May, suggesting a notable reversal. In addition, we pointed out that the decline in donor volumes thus far, coupled with a resurgence in Covid-19 cases will further exacerbate an already stretched Ig supply situation. As a result, the NexSys value proposition is now greatly enhanced due to the pandemic, which we expect to translate to further near-term upgrades. We took our fiscal 2021 estimate lower, to reflect the divestitures and steeper than expected declines, but we see upside potential from follow-on contracts with updated pricing.

Jefferies has a stunning $165 price target, while the consensus target is $130.33 Haemonetics stock closed at $90.74 on Tuesday.

Possibly having a vaccine to combat COVID-19 has brought this clinical-stage biotechnology company a ton of attention. Moderna Inc. (NASDAQ: MRNA) develops therapeutics and vaccines based on messenger RNA for immuno-oncology and the treatment of infectious, rare and cardiovascular diseases.

As of last year, the company had 11 programs in clinical trials and 20 development candidates in six modalities comprising prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics and systemic intracellular therapeutics.

Moderna has strategic alliances with AstraZeneca, Merck, Vertex Pharmaceuticals, Biomedical Advanced Research and Development Authority, Defense Advanced Research Projects Agency and the Bill & Melinda Gates Foundation, and well as a research collaboration with Harvard University.

Jefferies has started research coverage with a Buy rating and noted this:

We think shares of Moderna have room for appreciation in 2020-2021 on the potential approval of its COVID-19 vaccine, which we modeled could generate $5 billion+ annually. We highlighted that at $90/share it would be a $35 billion market cap or 7 times on a $5 billion COVID-19 franchise, but we’d see $15 billion or 3-4x sales and $15-20 billion for platform value on a pipeline on 15 other things in the clinic, including 5-10 vaccines and 5-10 other therapeutic programs which would be a lot more de-risked if COVID-19 works.

Based on our key opinion leaders discussions and disclosures, we believe there is a good probability the vaccine will work and get at least Emergency approval by early 2021, and in our view, the positive data for their COVID-19 vaccine will de-risk the company’s proprietary pipeline and technology platform which will lead the stock higher.

The $90 Jefferies price target could soon go higher soon. The consensus target is $96.58, and Moderna stock closed most recently at $80.86.

Netflix

This Wall Street darling and FANG constituent still offers a reasonable entry point. Netflix Inc. (NASDAQ: NFLX) is the world’s leading internet television network, with more than 120 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films.

Members can watch as much as they want, anytime, anywhere, on nearly any internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments. Netflix is available on virtually any device with an internet connection, including personal computers, tablets, smartphones, smart TVs and game consoles, and it automatically provides the best possible streaming quality based on the available bandwidth.

Many of its titles, including Netflix original series and films, are available in high-definition with Dolby Digital Plus 5.1 surround sound and some in Ultra HD 4K. Advanced recommendation technologies with up to five user profiles help members discover entertainment they will love.

With varying stay-at-home edicts in place around the nation, it is obvious the company is positioned well, despite the so-so earnings and outlook the company released last week. Jefferies analysts noted this:

Netflix reported second quarter results that roughly met expectations. However, shares were off after a softer than expected third quarter net add outlook. While we now expect paid net adds to be down year-over-year in the second half of 2020 given the pull forward of demand resulting from the pandemic, we highlighted that cash in the door now is better than 3 months from now. We continue to see an addressable market that will expand to >850 million over time, allowing the company to grow subscribers at a consistent double-digit cadence through 2023. We took our third quarter revenue and net add estimates lower, but would use persistent weakness as a buying opportunity.

The Jefferies price target is $550. The consensus target is $503.10, and Netflix stock closed at $490.10.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

These four top growth stocks all offer investors strength in their specific industries and the ability to generate some significant portfolio alpha. They are suitable for aggressive growth investors that have a larger degree of risk tolerance.

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