Jefferies is focused on a group of stocks poised for a breakout, and analysts have already raised their earnings estimates for the company. The fourth quarter earnings season continues despite strong macroeconomic concerns and signs that the U.S. Federal Reserve could cut interest rates later in 2024 than previously expected. However, corporate profits are solid. According to data from LSEG (formerly Refinitiv), earnings growth this fiscal year is expected to increase by nearly 8%, up from less than 5% just three weeks ago. Looking ahead, Jefferies Equity Research has screened stocks with more room to play based on the following criteria: The stocks on the list are U.S. companies with a market capitalization of at least $4 billion. Sell-side analysts’ average price target is at least 15% upside. For the past three months, the stock has outperformed 2024 earnings estimates. Small appliance maker Shark Ninja made the list, but its stock price has fallen 7% since the beginning of the year. SN YTD Mountain SharkNinja Stock. But analysts remain optimistic about the stock, with estimates rising by about 5% on average over the past three months. Analysts’ average price target suggests an increase of nearly 23% for SharkNinja over the next 12 months. Guggenheim began reporting on Shark Ninja late last week with a buy rating. Analyst Stephen Forbes emphasized that the company’s “industry-leading” appliances and product lines are likely to support near-term results. SharkNinja is scheduled to report his fourth quarter financial results on February 15th. Amazon, the dominant e-commerce platform, also cut Jeffries. The stock has increased 12% since the beginning of the year. Earnings estimates have increased by more than 15% on average over the past three months. AMZN YTD Mountain Amazon stock. Amazon beat Wall Street expectations for fourth-quarter sales and bottom line profits, and also beat expectations for first-quarter sales. Other stocks on the list include GMC, Chevrolet truck maker General Motors and Live Nation Entertainment. —CNBC’s Michael Bloom contributed reporting.
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