Jefferies said there is room for some stocks to rise in the coming months as the fourth quarter gets into full swing. Despite increased volatility in recent months (the CBOE Market Volatility Index is up 48% in the past three months), the market has already seen gains this quarter. Buoyed by a strong start to earnings season, the S&P 500 set a new intraday record on Thursday, bringing the market's quarter-to-date gain to 1.4%. On the same day, the narrow Dow Jones Industrial Average closed at an all-time high, rising 2.2% for the quarter. The Nasdaq Composite Index rose about 1% for the quarter. Financial stocks from Morgan Stanley to Wells Fargo to JPMorgan all beat Wall Street expectations. Towards the end of the year, Jefferies has updated its list of recommended stocks, called “Franchise Picks,” to highlight stocks with high conviction buy ratings. Consumer health company Kenview and transportation company Saia, which were spun out of Johnson & Johnson last year, also joined. Companies such as PepsiCo and Cisco were removed. “These top 21 ideas are backed by differentiated analysis, supported by catalysts, and at valuation levels that suggest upside,” the investment bank wrote in a note to clients on Thursday. Below are some of the stocks selected for the latest Jefferies list. Integrated oil producer ConocoPhillips could see further upside due to cost reductions at large projects such as Willow in Alaska, the Port Arthur LNG project in Texas and Northfield East (NFE) in Qatar. In addition, Jefferies is counting on efficiencies and cost savings from Conoco's deal to acquire Marathon Oil, which is expected to close this quarter. “The acquisition of MRO brings further synergies. [capital expenditures/operating expenses] And further upside in earnings/[free cash flow]”We expect COP to continue to pursue efficiencies after the acquisition closes and to exceed $500,” the investment bank said. [million] TheStreet is similarly bullish on Conoco, with 21 of the 27 analysts covering the Houston-based company rating it a Buy, according to LSEG. The $133 price reflects an increase of more than 25% from Thursday's closing price, and Jefferies expects further upside, and the company's $146 target reflects a more than 8% decline in Kenview stock, which was new this year. This suggests that Although down slightly this year, the stock is up more than 16% in the past three months and more than 11% in the past six months, and Jefferies believes it will update not only its sales but also its reinvestment and restructuring schedule. These increases are likely to continue. Growth in the U.S. skin, health and beauty sector and overall portfolio optimization could boost Skillman, N.J.'s stock price: “Increased reinvestment rates correlate with improved returns.” added Jeffries. (EST). Reposition your business for better results in 26 years with a 94% reinvestment rate. Procter & Gamble (PG) and Colgate (CL) However, TheStreet is not that bullish on Kenvue at nearly $24, as the majority of analysts are neutral. We note that the price target implies an upside of approximately 10%, which is lower than Jefferies' target of $27, which would be approximately 26% if achieved, and approximately 3% above consensus earnings. We are more bullish than Street on Progressive, especially since Progressive has improved underwriting margins and has very limited balance sheet exposure, so Progressive could benefit from the economic slowdown. Jefferies also believes Progressive's monthly report could cause an economic slowdown, not just this year but beyond. Although expected to be revised, “We believe the Street has not fully appreciated PGR's ability to accelerate growth with a relatively low ad spend ratio and its ability to generate recurring revenue.Loss trends will moderate.'' The stock has seen impressive gains this year, rising nearly 58%, and Jefferies' target of $295 represents an upside of more than 17% from its current price. means.
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