All of the top Wall Street firms that we cover here at 24/7 Wall St. have a list of what are truly their premium stocks to buy for their customers. Most firms have hundreds of names rated Buy, but usually only 20 to 30 stocks make the exclusive best of the best list. Usually after second-quarter earnings finish up, we start to see additions and deletions, plus updates on these lists.
The analysts at Jefferies have done some fine tuning to the “Franchise Picks” list, which is their cream-of-the-crop list. We looked through the updated list for the stocks on it that had the largest upside to the Jefferies designated price targets. It gives investors a wide list of top companies to choose from, all of which are rated Buy at Jefferies.
Abercrombie & Fitch Co. (NYSE: ANF) is a very solid retail stock for investors to consider. The company recently got a nice boost as Merrill Lynch raised its rating and price target on the stock. The consumer discretionary sector has struggled this year and may be offering investors some good value going forward. Better year-over-year comparisons and a solid new offering of products could really start to reignite consumer appeal.
A&F shareholders are paid a 1.9% dividend. Jefferies has a bold $60 price target. The Thomson/First Call consensus is set at $44.31. Shares closed Tuesday at $40.50. A trade to the Jefferies target is a $50% gain.