We recently published a list of Top 10 Beaten Down Large Cap Stocks That Can Double According To Wall Street. In this article, we are going to take a look at where Jefferies Financial Group Inc. (NYSE:JEF) stands against other top beaten down large cap stocks that can double according to Wall Street.
There was a point in the early days of Donald Trump’s presidency when the stock market looked set for a bull run. Bit by bit, the market digested geopolitical issues, trade wars, and recession fears. It looked like these were temporary concerns only.
We’re now less than two months into the presidential term and every consensus trade seems to be unravelling in front of our eyes. Investors are panicking and the state of the US economy looks fragile, with recession knocking on the door.
Investors operating in capital markets do not have the luxury of getting out of the market. No matter how the market behaves, they will still be here hunting for opportunities. That’s exactly what we do as well. As the market tanks, we decided to look at beaten down stocks that could comfortably outpace the market if bought after the current sell off.
To come up with our list of 10 beaten down large cap stocks that can double according to Wall Street, we considered stocks that have a market cap of at least $10 billion, have been hammered in the past week, and have a Wall Street price target that could see the stock double from current levels.
A financial advisor shaking hands with a client, representing the wealth management services of the company.
Jefferies Financial Group Inc. (NYSE:JEF)
Jefferies Financial Group Inc. (NYSE:JEF) is a capital markets and investment banking company. It operates through Asset Management and Capital Markets & Investment Banking segments. Wall Street has the highest price target on the company’s stock of $92 while the stock currently trades well below even the lowest price target of $75, suggesting minimal downside.
Jefferies Financial Group Inc. (NYSE:JEF)’s fundamentals are improving and the recent dip is making it attractive for investors at a PE of 18.8 and a price to book ratio of just 1.2. Its revenue sources are decently diversified, with half of the revenue coming from advisor and underwriting services, one-third from trading, and the rest coming from asset management services and its own investments.
The stock is therefore coupled with the volatility of the financial markets and the economy, more so than other stocks. Its ability to generate revenue from both underwriting and secondary market trading makes it a better bet than some of its peers like Evercore and Piper Sandler. This brings in the added volatility too. But the added risks only make the eventual reward sweeter.
Overall, JEF ranks 7th on our list of top beaten down large cap stocks that can double according to Wall Street. While we acknowledge the potential of JEF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as JEF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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