Best Research Ideas
Panning for Gold in Whitewater: Single Stocks with Substantial Upside
Jefferies published a report highlighting single stock ideas for outperformance from current, elevated index levels. Impact from the Delta variant, rising geopolitical instability and potential changes to monetary policy have caused positioning to tilt back toward risk averseness. That said, the Research team highlighted that economic data has remained broadly encouraging and 2Q earnings were robust on balance. In addition, the firm also sees a significant number of stocks under pressure with attractive company-specific attributes. For some, this is due to businesses transformations, product changes & innovations or secular trends that were largely unencumbered or outright accelerated by the ongoing pandemic. Jefferies analysts identified stocks for which they see substantial upside, with leverage to a continued recovery, secular drivers or stock-specific catalysts. The list includes: ACVA, ANF, AVNT, BLMN, CALX, CHPT, CL CN, CURO, DAL, ELY, FCX, FREE, GLNG, KMT, LFST, LKQ, LYV, MIDD, OLMA, PAR, PRG, THC and UTHR.
— The Jefferies Global Equity Research Team