5 Jefferies Franchise Picks Stocks With Huge Total Return Potential


Toys and games rarely go out of favor, and this top company is among the best in the business. Hasbro Inc. (NASDAQ: HAS) engages in the provision of children and family leisure time products and services with a portfolio of brands and entertainment properties. The company’s brand names include Littlest Pet Shop; Magic: The Gathering; Monopoly; My Little Pony; Nerf; Play-Doh; and Transformers.

The Entertainment and Licensing segment conducts movie, television and digital gaming entertainment operations, including the operations of Hasbro Studios and Backflip, as well as engages in the out-licensing of trademarks, characters and other brand and intellectual property rights to third parties for digital gaming and consumer products.

We noted recently the company bonanza from huge exposure to Bumblebee, which is a fictional robot character from the Transformers franchise. In most versions, Bumblebee is a small, yellow with black stripes Autobot, with most of his alternative vehicle modes inspired by that. Hasbro renegotiated its long-standing filmmaking partnership with Paramount in 2017, with the first installment of the collaboration being Transformers’ “Bumblebee,” which premiered December 21.

Investors receive a 2.77% dividend. The $120 Jefferies price objective compares to the $102.31 consensus estimate and the most recent close of $91.00.

Texas Instruments

This old-school chip tech play offers solid value at current levels is the lone semiconductor stock on the Jefferies Franchise Picks list. Texas Instruments Inc. (NASDAQ: TXN) is a broad-based supplier of semiconductor components, ranging from digital signal processors to high-performance analog components, to digital light-processing technology and calculators.

Some 65% of the company’s sales are exposed to the well-diversified, business-to-business industrial, automotive, communications infrastructure and enterprise markets. While the stock was hit hard recently as it is a big Apple supplier, the long-term outlook for this venerable leader makes it a safer bet for accounts with less risk tolerance.

The company announced reported $1.27 in earnings per share for the most recent quarter last week, topping the consensus estimate by three cents. But the firm had revenue of $3.72 billion for the quarter, a bit short of the consensus estimate.

Shareholders are paid a 2.92% dividend. The Jefferies team is comfortable with a $137 price target. The consensus target is $108.07, and shares were last seen at $106.48, up over 4% on the day.

Williams Companies

This top energy stock was added to the Jefferies Franchise Pick last summer. Williams Companies Inc. (NYSE: WMB) is now largely a pure-play domestic natural gas infrastructure company that recently completed the merger with its underlying master limited partnership, Williams Partners.

The company has a lower risk, fee-based business model with some volume sensitivity. Natural gas demand continues to be driven by LNG exports, power generation and industrial needs. In addition to steady demand growth, Marcellus production and associated gas in the Permian are expected to continue to be primary supply drivers.

Shareholders receive a 5.0% dividend. Jefferies has set a $34 price target. The consensus estimate is $31.89, and the shares closed most recently at $27.24.

These five solid growth stocks all pay reliable dividends and have backed up to much more reasonable entry points, offering investors good upside potential to the Jefferies price targets.