Investing

Jefferies Adds Top Industrial Stock to Franchise Picks List

Hasbro

Toys and games rarely go out of favor, and with Christmas right around the corner, the timing to buy looks solid. 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, 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.

In addition, Hasbro partners with major content owners to license brands for toy and collectible products. The company’s licensing of its own brands to other CP category specialists has directly benefited consumer engagement and profitability. Partnerships with key media brands on a global basis imply multilevel growth. The analysts expect continued franchise economics from investments in films and TV.

Investors receive a 3.28% dividend. The $88 Jefferies price objective compares to the $89.71 consensus estimate. Hasbro stock closed at $82.95.

Huntsman

This top stock to buy offers intriguing potential for value expansion. Huntsman Corp.’s (NYSE: HUN) portfolio of businesses represents a diversified set of chemical products touching an even broader set of end markets.

The company reports across four business segments (Polyurethanes, Advanced Materials, Performance Products and Textile Effects) representing the revenues and profits from the company’s exposure to five primary chemical chains. Across many of these platforms, Huntsman operates a vertically integrated footprint from upstream commodities to downstream derivatives.

Top analysts feel that Huntsman now has one of the strongest balance sheets in the chemical sector. Combined with progress reducing cyclical risk, and ample opportunity to grow faster than gross domestic product due to innovation, the future looks strong. Earlier this month Huntsman updated its third-quarter performance noting Polyurethanes earnings are on track to beat the prior discussed range greater than 40%. This is taking Wall Street estimates considerably higher.

Shareholders receive a 2.95% dividend. Jefferies has set a $30 price target. The consensus target is $24.58, and Huntsman stock closed at $22.05 a share.

TJX Companies

The Jefferies team loves this off-price retailer, and it is another solid holiday pick for the fourth quarter. TJX Companies Inc. (NYSE: TJX) is the largest global off-price retailer with over 3,000 stores worldwide. It offers brand-name merchandise at a 20% to 60% discount to department and specialty store prices. Its stores generally are known for their treasure hunt experience.

The core TJX customer is a middle to upper-middle income female, between 25 and 54 years old, who is fashion and value conscious. The analysts feel that the “new normal” is positive for the shares of the discount retailer and said this:

In a post-COVID world, TJX is uniquely positioned as the beneficiary of both supply and demand benefits. While the market focuses on the risk from a consumer migration towards e-commerce, our proprietary work shows TJX’s distinctive in-store experience may be the exception to the rule.

The Jefferies price target on TJX Companies stock is $65. The consensus target is $63.24, and the shares were last seen trading at $57.08 apiece.


With the market expensive and the potential for increased volatility from the ongoing pandemic and the political environment, it makes sense for investors to stay conservative. A contested election will not sit well with Wall Street, so better safe than sorry at this point.