Jefferies Adds Top Stocks to Global Conviction List (TRW, HAL, IR, JDSU, FRAN)
The global equity team at Jefferies (NYSE: JEF) has put together a solid list of stocks from around the globe that it thinks investors should buy.
Today’s focus is on innovation, technology and the ability to expand market share. We are focussed on the stocks on the list that investors can easily buy in the United States, although many of the other picks from this Jefferies Global Conviction List can still be bought in the US markets via the over the counter pink sheets.
In their second-quarter Global Conviction List review, Jefferies adds five very solid U.S. companies to the list.
Automobile sales have exploded in the United Stated, and the first name added to the Jefferies list is a big beneficiary of that growth. TRW Automotive Holdings Corp. (NYSE: TRW), based in Livonia, Mich., is literally and figuratively hitting on all cylinders. The Jefferies price target for the stock is $72. The Thomson/First Call estimate for this sector-leading pick is right in line at $71.
Oil field services leader Halliburton Co. (NYSE: HAL) is showing up on lots of lists of second-quarter stocks to buy. Trading at a very reasonable 13.63 times earnings, the stock has underperformed the rest of the market despite very solid crude oil pricing over the past year. The Jefferies price target for Halliburton is $47. The Wall St. consensus is at $48. The company pays shareholders a 1.30% dividend.
Worldwide industrial leader Ingersoll-Rand PLC (NYSE: IR) makes the grade. It is a huge beneficiary of the home construction boom in the United States with its American Standard, Schlage and Trane brand names, and the stock looks poised to go higher. The Jefferies price target is $64, while the consensus estimate is lower at $57. Ingersoll-Rand pays investors a 1.50% dividend.
A parabolic high flyer in the 1990s that plummeted back to earth after the tech collapse, optical communications test and measurement leader JDS Uniphase Corp. (NASDAQ: JDSU) is forging a solid comeback and makes the Jefferies list. It has a broad product line and solid revenue growth, and the Jefferies price target for this rehabilitated stock is $19. The consensus target is $16.50. A move to the Jefferies price target would represent a 45% gain from current trading levels.
One final stock Jefferies analysts recommended in their report, but did not actually place on the list, is worthy of consideration. Specialty boutique retailer Francesca’s Holdings Corp. (NASDAQ: FRAN) may offer investors considerable upside. With 360 stores across the United States targeting female customers, the company has seen solid growth. The Jefferies price target is $42 and the consensus estimate is $39. The move to the price target would represent a huge 45% gain from today’s trading levels.
Instead of chasing momentum stocks or high flyers, the Jefferies analysts have compiled a list of names to add to their global stocks to buy list, that represent not only growth prospects, but solid values. That is exactly the kind of research that investors need to seek and perhaps follow from Wall St.