4 Jefferies Growth Stocks to Buy as January Selling Presents Big Opportunity
This consumer discretionary stock is fighting its way back after getting annihilated last year. Coach Inc. (NYSE: COH) is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941 and has a rich heritage of pairing exceptional leathers and materials with innovative design.
Coach products are sold worldwide through Coach stores, select department stores and specialty stores, and through company’s website. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries.
The stock was a favorite for years before getting absolutely hammered in 2015. Many Wall Street analysts have upgraded the company recently. The Jefferies team note that many of the headwinds the company faced last year should dissipate in 2016, and the holiday season seems to have been right on track. They are also 10% ahead of Wall Street for fiscal 2017 earnings per share estimates.
Coach investors receive an outstanding 4.29% dividend. The Jefferies price objective is a whopping $50. The consensus target is $37.42, and the shares closed Thursday at $32.47.
If there was ever a consumer goods stock that can withstand a market onslaught, it is this old-time favorite. J.M. Smucker Co. (NYSE: SJM) manufactures and markets branded food products worldwide. It markets its products under the Folgers, Dunkin’ Donuts, Smucker’s, Jif, Crisco, Pillsbury, Millstone, Cafe Bustelo, Hungry Jack, Eagle Brand, Magnolia, Robin Hood, Five Roses, Santa Cruz Organic, R.W. Knudsen Family, Meow Mix, Milk-Bone, Kibbles ‘n Bits, Natural Balance, 9Lives, Pup-Peroni, Gravy Train, Nature’s Recipe and other brand names.
Jefferies notes that the recently expanded distribution agreement of Dunkin’ K-Cups into the grocery channel could represent an incremental $300 million or so in sales by 2017. This effectively would double the size of Smuckers single-serve business. The firm also anticipates that the acquisition of Keurig Green Mountain also will serve as a modest positive for growth in the single-serve market overall.
Investors receive a 2.25% dividend. Jefferies has a $140 price objective, and the consensus price target is $131.45. Shares closed most recently at $119.26.
Wingstop Inc. (NASDAQ: WING) had a solid IPO in 2015, but the stock has sold off, leaving investors an outstanding entry point. The company franchises and operates restaurants under the Wingstop name that specialize in cooked-to-order, hand-sauced and tossed chicken wings. As of May 06, 2015, it operated approximately 750 restaurants in the United States, Mexico, Russia, Singapore, the Philippines and Indonesia.
The analysts note that the company already pre-announced positive numbers for the most recent quarter. They also point to the solid unit growth, which was 19% for the year, with same-store-sales of 5.9% for the quarter. Online ordering is growing smartly and carries a 25% increase in the check. They also are fans of the tech play along with a unique brand that’s differentiated in customers and real estate.
The $28 Jefferies price target is lower than the consensus of $30.71. The stock closed Thursday at $25.54.
All these top growth stocks to buy at Jefferies present far less risk to investors than high-volatility momentum companies. Those stocks are being shelled now if for no other reason that many investors have huge gains. These can slide nicely into a growth portfolio with much less volatility risk.