Investing

Jefferies Has 5 Stocks to Buy That Should Raise Dividends and Earnings

Cabot

This company has an extensive global footprint, and it offers a solid entry point for investors. Cabot Corp. (NYSE: CBT) is a global specialty chemicals and performance materials company. It operates through four business segments focused on reinforcement materials, performance chemicals, purification solutions and specialty fluids.

The company recently announced an expanded range of premium carbon black products for racing and ultra-high-performance tires with the launch of the new PROPEL X carbon black series. The popularity of sports cars and luxury vehicles has led to a steady increase in the demand for high-performance tires. Ultra-high-performance tires are designed with a focus on traction and precise handling characteristics that enable vehicles to safely reach ever-increasing performance requirements.

Cabot investors are paid a 2.01% dividend. The $78 Jefferies price objective compares with the consensus target price that was last seen at $74.33. The stock closed Tuesday’s trading at $62.74 per share.

First Horizon National

This smaller cap bank stock is well positioned for higher short rates. First Horizon National Corp. (NYSE: FHN) is a bank holding company headquartered in Memphis, Tennessee, with assets of over $40 billion and operations in Tennessee, Georgia and Mississippi. The company’s primary lending products are residential real estate, commercial and industrial, and commercial real estate. The company derives more than 50% of total revenues from fee-based businesses.

The company reported fourth-quarter results that came in above consensus expectations, and it is in the process of integrating the purchase of Capital Bank Financial, a deal that closed near the end of 2017 for $2.2 billion.

Investors receive a solid 2.48% dividend. Jefferies has set its price target at $24. The posted consensus target is $22.66, and the shares closed at $19.33 on Tuesday.

Walmart

The giant retailer is on sale after being pummeled recently. Walmart Inc. (NYSE: WMT) is the world’s largest retailer, operating retail stores under the formats of Walmart Stores, Supercenters, Neighborhood Markets, as well as Sam’s Club locations, in the United States, and it has a growing e-commerce business (including Jet.com). Internationally, Walmart also operates locations in several countries, including Argentina, Brazil, Canada, China, Japan, Mexico and the United Kingdom.

Each week, nearly 260 million customers and members visit the company’s 11,535 stores under 72 banners in 28 countries and e-commerce sites in 11 countries. With fiscal year 2017 revenue of nearly $486 billion, Walmart employs approximately 2.2 million associates worldwide.

The stock was absolutely crushed after reporting earnings in which e-commerce sales came in below expectations. The stock suffered its worst trading day ever, and many top Wall Street analysts have said to jump on shares after the decline.

Walmart shareholders are paid a 2.27% dividend. The Jefferies price target is $110. The consensus target is $104.49, and the shares closed on Tuesday at $91.52 apiece.

These five stocks come with upward earnings revisions and the potential for rising dividends. They all make good sense for investors looking for stocks ideas as we get closer to the second quarter.