Jefferies, an investment banking and capital management firm, has updated its ‘Franchise Picks’ list, which features the company’s highest-conviction ‘Buy’ rated stocks.
The reshuffling shows a clear preference for U.S. equities with ties to artificial intelligence (AI) infrastructure, digital advertising, healthcare, and selective consumer value opportunities.
Most notably, the research team added new positions in Amazon (NASDAQ: AMZN), AppLovin (NASDAQ: APP), and Credo Technology (NASDAQ: CRDO).
Other notable additions include McDonald’s (NYSE: MCD) , Thermo Fisher (NYSE: TMO), American Healthcare REIT (NYSE: AHR), and Ovintiv (NYSE: OVV).
Jefferies removes Broadcom and Nike from its ‘Franchise Picks’
At the same time, the firm removed some rather notable names from the list, including American International Group (NYSE: AIG), Broadcom (NASDAQ: AVGO), and Nike(NYSE: NSE).
Elaborating on the updates, Jefferies said the new lineup is indeed a step further toward AI-driven infrastructure and monetization themes, alongside defensive and steady-growth exposure in healthcare and consumer staples.
The bank highlighted Amazon as benefiting from early-stage reacceleration in Amazon Web Services (AWS), as new capacity comes online and AI partnerships strengthen long-term revenue visibility.
Similarly, AppLovin was added for its position in mobile gaming advertising and expanding direct-to-consumer e-commerce exposure, while Credo made the cut on expectations of increased adoption of active electrical cable technology.
On the consumer side, McDonald’s illustrates the company’s hope that McValue platform can support same-store sales and help defend market share, even amid subdued near-term expectations.
Jefferies’ favorite healthcare stocks
In healthcare, RadNet (NASDAQ: RDNT) was cited for rising outpatient imaging demand, including growth in PET, MRI, and CT procedures. At the same time, Thermo Fisher was added on expectations of an earnings inflection tied to improving biopharma demand in the second half of the year.
Further, UL Solutions (NYSE: ULS) was highlighted for its leadership in testing, inspection, and certification services, with Jefferies pointing to pricing power, macro resilience, and potential upside from AI-related testing demand.
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