5 Jefferies Franchise List ‘Strong Buy’ Stocks With Big Upside That Also Pay Rich Dividends – 24/7 Wall St.

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All of the investment firms and banks we follow here at 24/7 Wall St. maintain a list for their institutional and retail clients of high-conviction stock picks. These are usually the companies they like not only in the longer term, but also the stocks that usually have good upside potential relative to the assigned target price. Since the start of the year, many of these big Wall Street firms have changed their lists of top stocks to buy regularly to account for the continued changes in 2022. So, with many second quarter earnings still rolling in , we decided to filter the Jefferies Franchise Top Stock Picks list looking for those that pay the biggest dividends and are analyst favorites.

Five stocks hit our screen, and despite July’s massive rally, it probably makes sense for investors to take a cautious stance for the rest of the year. All of these companies fit the bill. While all are rated Buy at Jefferies, remember that no analyst report should be used as the sole basis for any buy or sell decision.

Blooming brands

Chances are you’ve had a meal at one of this company’s very popular restaurants. Bloomin’ Brands, Inc. (NASDAQ: BLMN), through its subsidiaries, owns and operates casual, upscale casual and fine dining restaurants in the United States and around the world.

Bloomin’ Brands operates through two segments, US and International. Its restaurant portfolio includes four concepts: Outback Steakhouse, a casual steakhouse; Carrabba’s Italian Grill, a casual Italian restaurant; Grilled bone fish; and Fleming’s Prime Steakhouse & Wine Bar, a contemporary steakhouse. As of December 26, 2021, the company owned and operated 1,013 full-service restaurants and franchised 157 restaurants in 47 states; and 156 full-service restaurants and 172 franchise restaurants in 17 countries and Guam.

The company posted very strong second-quarter results that beat earnings and revenue estimates, and it raised its revenue outlook, while earnings guidance fell short of expectations.

Investors can eat on a solid 2.75% dividend. Jefferies’ target price is shown at $36, while the consensus target on Wall Street is set at $27.70. The last trade on Monday was reported at $20.49.

The Blackstone LP Group

This top fund management company makes perfect sense for more aggressive growth and income investors. The Blackstone Group LP (NYSE: BX) is one of the world’s largest alternative asset managers. Blackstone manages investments and provides services in four operating segments: private equity, real estate, credit and hedge fund solutions.

Blackstone also initiates and manages private equity funds, real estate funds, funds of hedge funds and credit-oriented funds for its clients. It invests in private equity, private equity, fixed income securities and alternative investment markets.

Despite higher earnings estimates and an increase in assets under management, stocks have slumped this year. With investors receiving a very rich 4.47% dividend and Jefferies having a price target of $155, which compares to a lower consensus of $121 and a close of $103.24 on Monday, it looks like a outstanding total return game.

Freeport-McMoRan

This company is one of the top picks on Wall Street in the industry and an outside way to play the electric vehicle trend. Freeport-McMoran Inc. (NYSE: FCX) is the world’s largest publicly traded producer of copper and molybdenum and the eighth-largest producer of gold. Its main operating and development assets are in Indonesia, North America, South America and Africa.

With its leverage on copper mining, the company could be an important player in a scenario of rebuilding and repairing old and dilapidated projects and would clearly benefit from stronger demand and higher prices for raw materials. industrial firsts.

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Many on Wall Street see significant upside potential in commodity prices over the next one to three years. This is due to accelerating demand growth outside of China and supply constraints. Top analysts believe that this cycle is only in its infancy, as the main drivers of demand are expected to continue to grow. With the recent rebound in copper and stocks at a very reasonable entry point, those looking for commodity ideas could do well with this market leader.

Investors receive a decent dividend of 1.90%. Jefferies’ price target is posted at $58, which compares to the consensus lower of $38.51 and Monday’s closing print of $29.98 down 5%.

Newell Brands

This leading consumer goods stock is safe play for investors worried about a toppy market and has recently pulled back. Newell Brands Inc. (NYSE: NWL) is a manufacturer and marketer of consumer products, with six reporting segments: writing (Sharpie, Paper Mate, Waterman, Parker); home solutions (Rubbermaid, Calphalon, Goody); tools (Irwin, Lenox); commercial products (Rubbermaid Commercial Products, Rubbermaid Healthcare); baby and parenthood (Graco, Aprica); and Jarden (with 120 brands including Yankee Candle, Jostens, Oster, Sunbeam, Mr. Coffee, K2, Marmot, Rawlings, Coleman and First Alert).

Consumer staples stocks like Newell tend to be solid ideas in times of inflation and rising rates. Last year, the company’s cash distributions to shareholders reached nearly $400 million. During the same period, Newell produced approximately $600 million, including $350 million in abnormally spent cash on inventory accumulation, which the company attributed to preparing for sales growth. With a payout ratio below 70%, Newell should continue to easily support the large and tempting dividend.

While Newell posted mixed second-quarter results (earnings made best estimates) and downgraded its outlook for fiscal 2022, the company’s strong assortment of ever-needed products makes it an ideal fit if things go wrong. complicate again.

Newell shareholders receive an exceptional dividend of 4.55%. Analysts have a price target of $28, while the consensus on Wall Street is set just below at $26.10. The shares were last seen Monday at $20.28.

Webster Financial

This is an off-the-radar idea in financial services that could be a big winner in a rising interest rate environment. Webster Financial Corporation (NYSE: WBS) operates as the bank holding company for Webster Bank, NA, which provides a range of banking, investment and financial services to individuals, families and businesses in the United States.

The Company operates through three segments: Commercial Banking, HSA Bank and Retail Banking. The commercial banking unit provides lending, depository and cash management services; commercial and industrial lending and leasing, commercial real estate lending, equipment financing and asset-based lending, and treasury and payment services; wealth management solutions for business owners, operators and consumers; and trust, asset management, financial planning, insurance, retirement and investment products.

The HSA Bank segment offers health savings accounts, healthcare reimbursement arrangements, flexible spending accounts and commuter services that are distributed directly to employers and individual consumers, as well as through companies national and regional insurance companies, consultants and financial advisors. The Retail Banking segment offers deposit and fee-based services, residential mortgages, home equity lines of credit, secured and unsecured loans and consumer credit cards. The company also offers online and mobile banking services. As of December 31, 2021, it operated 130 banking centers and 251 ATMs.

The stock has been shaken recently despite posting very strong second-quarter results that exceeded analysts’ expectations. The bears pointed to higher spending, but the reality is that this is a cheap and smart buy in a sector that relishes rising interest rates.

Investors receive a very solid dividend of 3.44%. Jefferies analysts have a target price of $55 against the slightly higher consensus target of $60.56. Shares closed Monday at $46.19.

While none of these stocks will make massive parabolic moves soon, they are safer ideas for nervous investors concerned about the potential for inflation to wreak havoc on the economy the rest of 2022. The July Rally was a pleasant surprise for beleaguered investors. , but profits are falling, stocks are inflated and inflation is still the highest in 40 years. No one has ever gone bankrupt playing it safe in times of stress.

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