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CNBC
a day ago
- Business
- CNBC
Here are Jefferies' top stock picks for the summer
As a new trading month kicks off, analysts from Jefferies shared their top stock picks heading into the summer. Uncertainty over tariff policy was the theme that dominated markets to start the year. But stocks saw a rebound in May, with the S & P 500 adding 6.2% and posting its best month since November 2023. Investors are divided on where the market could go from here. On the more optimistic end, Fundstrat Global Advisors' Tom Lee said that the April sell-off has " rebirthed the new bull market ." But Evercore's Julian Emanuel seemed less certain, pointing to historical records suggesting that investors may have to contend with some rocky times ahead . With trade uncertainty likely to be at the forefront of investors' minds going forward, Jefferies' top stock picks seem "ready for sunshine or rainclouds," the firm wrote in a Tuesday note. Jefferies shared 28 of its top buy-rated, highest-conviction ideas that "are underpinned by differentiated analysis, supported by catalysts and sit at valuation levels that suggest upside." The table below lists 10 of these picks: One of the names on Jefferies' list was Nvidia . Shares of the chipmaker are up 5% this year. Jefferies' price target of $185 implies a further upside of 31%. "We view NVDA as the dominant supplier of AI accelerators within the data center, an industry that is expanding rapidly due to the development and adoption of AI," the firm wrote. "The ramp of the co's next-generation Blackwell GPU platform is now fully underway, so [ gross margins ] should improve from the low-70% to mid-70% range throughout the year." Dexcom , the maker of glucose monitoring systems, was another name on Jefferies' list. Shares have risen 11% in 2025. The bank's price target of $110 corresponds to an upside of nearly 27%. "We think DXCM is about to capitalize on a major top-line driver as it looks to expand coverage to Type 2 non-insulin (NIT2) patients," Jefferies wrote. The company has received approval from the U.S. Food and Drug Administration for its 15-day glucose monitoring sensor , and "the conversion to 15-day sensors could be a significant margin driver," the firm said. Jefferies also singled out Capital One as another winner. The bank's price target of $230 is nearly 18% above where shares settled on Tuesday afternoon. The firm cited Capital One's recent acquisition of Discover Financial Services as a major catalyst for the company. "Merger with DFS has been completed, unlocking significant network and OPEX synergies. Additional items that provide conviction on the name are improving credit trends within the COF/DFS books, leading to potentially higher net interest margin coupled with reserve releases," the firm wrote. Shares of Capital One have rallied more than 9% this year.
Yahoo
2 days ago
- Business
- Yahoo
Jefferies Adds Nvidia to Top?Conviction Buys
Nvidia (NASDAQ:NVDA) leads Jefferies' latest additions to its Franchise Picks, joining Capital One Financial (NYSE:COF), Expand Energy (NASDAQ:EXE), Huntington Bancshares (NASDAQ:HBAN), PVH (NYSE:PVH) and UGI (NYSE:UGI). The 28-stock roster reflects Jefferies' highest-conviction, Buy-rated ideasnames with differentiated analysis, clear catalysts and upside at current valuations. Nvidia's entry follows Jefferies' view that ramping Blackwell Ultra chips and robust networking revenue will drive full-year 2025 gross margins into the mid?70% range, underpinning AI?driven growth. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Capital One earns a nod for its digital banking scale and disciplined underwriting, while Huntington's regional?bank focus positions it to benefit from improving loan demand. Expand Energy and UGI both capitalize on clean?energy transitionsEXE through its clean?fuel infrastructure projects and UGI via its diversified utility footprint. PVH joins for its strong brand portfolio, inventory discipline and margin expansion in its core apparel lines. Jefferies removed two unspecified names to make room for these additions. Investors should care because inclusion on Jefferies' Franchise Picks signals these companies offer both durable earnings momentum and identifiable near?term catalysts, making them potential outperformers in the S&P 500. With NVDA guiding to mid?70% gross margins and COF and HBAN poised to leverage favorable credit trends, markets will watch for upcoming quarterly results to validate Jefferies' conviction. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Netflix: Jefferies remains bullish, sees a favorable catalyst path
-- Jefferies reiterated its Buy rating on Netflix (NASDAQ:NFLX) and raised its price target for the stock to $1,400 from $1,200 in a note Tuesday, citing confidence in the streaming giant's long-term growth trajectory and favorable near-term catalysts. The analysts see 'a favorable catalyst path with U.S. price hikes and a robust content slate driving potential upside in 2H25.' Following a record 41 million net subscriber additions in 2024 and an 84% stock gain over the past year, investors have debated how Netflix can sustain its momentum. Jefferies believes growth will continue, supported by upcoming hits such as Squid Game, Stranger Things, and Wednesday, as well as limited churn from recent price increases. 'Churn from recent price increases has been limited, suggesting long-term pricing power is intact,' the firm wrote. Jefferies expects advertising to be a major revenue engine in the coming years. 'The ad business is still in its infancy with the potential for revenue to 5x from $2B in FY25 to $10B+ longer term,' Jefferies said. The analysts forecast Netflix can sustain over 20% annual free cash flow growth, reaching $18 billion over five years, up from $6.9 billion currently. Risks include tough comparisons in 2026, especially in the U.S. and Canada, and potential pressure on margins from live sports investments. Still, Jefferies raised its FY26 and FY27 EBITDA forecasts by 4% and 5%, respectively, and noted that 'long-term valuation analysis supports upside.' Jefferies' new $1,400 target implies about 15% upside from current levels and reflects '~36x our FY26 EBITDA.' The firm concluded: 'We continue to see a favorable catalyst path for NFLX over the short, medium, and long-term.' Related articles Netflix: Jefferies remains bullish, sees a favorable catalyst path Goldman Sachs starts coverage on auto services stock with mixed ratings Truist upgrades Oshkosh saying stock 'too cheap to ignore' Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Jefferies Adds Nvidia to Top?Conviction Buys
Nvidia (NASDAQ:NVDA) leads Jefferies' latest additions to its Franchise Picks, joining Capital One Financial (NYSE:COF), Expand Energy (NASDAQ:EXE), Huntington Bancshares (NASDAQ:HBAN), PVH (NYSE:PVH) and UGI (NYSE:UGI). The 28-stock roster reflects Jefferies' highest-conviction, Buy-rated ideasnames with differentiated analysis, clear catalysts and upside at current valuations. Nvidia's entry follows Jefferies' view that ramping Blackwell Ultra chips and robust networking revenue will drive full-year 2025 gross margins into the mid?70% range, underpinning AI?driven growth. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Capital One earns a nod for its digital banking scale and disciplined underwriting, while Huntington's regional?bank focus positions it to benefit from improving loan demand. Expand Energy and UGI both capitalize on clean?energy transitionsEXE through its clean?fuel infrastructure projects and UGI via its diversified utility footprint. PVH joins for its strong brand portfolio, inventory discipline and margin expansion in its core apparel lines. Jefferies removed two unspecified names to make room for these additions. Investors should care because inclusion on Jefferies' Franchise Picks signals these companies offer both durable earnings momentum and identifiable near?term catalysts, making them potential outperformers in the S&P 500. With NVDA guiding to mid?70% gross margins and COF and HBAN poised to leverage favorable credit trends, markets will watch for upcoming quarterly results to validate Jefferies' conviction. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Analysts' Bullish Reviews Mask Weak Conviction in US Stock Rally
(Bloomberg) -- After a furious May rally, Wall Street analysts now have more buy ratings on individual companies in the S&P 500 Index than at any time in more than two decades, according to a Jefferies LLC analysis. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Where the Wild Children's Museums Are The Economic Benefits of Paying Workers to Move Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania NYC Congestion Toll Brings In $216 Million in First Four Months That's usually a sign of froth in a market poised for a pullback, but Jefferies' Andrew Greenebaum sees fewer reasons to worry once you look under the hood. His argument goes like this: While more than four of the five stocks in the S&P 500 have buy recommendations, the price targets underlying those assessments imply just a gain of 10% over the next 12 months, based on the firm's analysis. That's near the average for the US benchmark historically, and should allay fears the current rebound has run its course, he said. 'Wall Street's been upgrading names, probably using the selloff to do it,' said Greenebaum, senior vice president of equity research product management at Jefferies, who compiled the data. 'But I don't take that as overwhelming bullishness, because price targets are not that far away from where stocks currently sit.' The S&P 500 has jumped nearly 20% from the depths of April's rout on a reprieve from President Donald Trump tariff blitz. Yet analysts and strategists alike have been struggling to map out the path forward, penciling in, then erasing forecasts against a backdrop of back-and-forth policy pronouncements from Trump and his administration on trade. Greenebaum says analyst predictions on individual stocks are a better indicator of the market's direction than year-end S&P 500 targets since they more take into consideration individual companies' profits. He calculated the aggregated S&P 500 target over the next 12 months and landed at 6,528, a level that implies a 10% advance from Friday's close. If analyst ratings and price targets are any indicator of stock performance, things look like business as usual, he says. This hasn't stopped prognosticators from fretting. 'You can probably ignore strategy comments and focus on the fundamentals, because the analysts aren't seeing company fundamentals go down,' said Greenebaum. Forecasts Shredded Trump's on-the-fly tariff regime has forced wild swings in expectations from sell-side strategists. After furiously downgrading their US stock forecasts across April, some are starting to make U-turns on their calls once again. Ed Yardeni of Yardeni Research and David Kostin of Goldman Sachs Group Inc. are among soothsayers who lifted their forecasts after lowering them. But economists are warning that although rhetoric around levies has calmed since Trump's April 2 rollout of steep levies, the damage on business and consumer confidence has already been done and could be reflected in economic data in the months ahead. From one vantage point, the economy is already showing cracks. Gross domestic product decreased at a 0.2% annualized pace in the first quarter, the second estimate from the Bureau of Economic Analysis showed Thursday. That compared with an initially reported 0.3% decline. On the other hand, the labor market has so far remained intact with investors looking ahead to next week's payrolls report as the next hurdle. 'The analysts are not actually getting reachy with their price targets,' Greenebaum said. 'When you look at that level, it's basically low, double-digit returns — it's kind of ho-hum boring.' YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Will Small Business Owners Knock Down Trump's Mighty Tariffs? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
