Stocks Jefferies’ analysts like going into earnings against the Wall Street consensus. Jefferies is anticipating a significant shift in market sentiment as several stocks previously overlooked by Wall Street analysts are poised to outperform during the upcoming earnings season. With the second-quarter reports set to be released at an accelerated pace – this week is expected to be the busiest, featuring approximately 30% of the S&P 500 (151 companies) and nine stocks from the Dow Jones Industrial Average – Jefferies’ research highlights companies that could deliver substantial gains. Notably, four members of the ‘Magnificent Seven’ tech cohort will be among the key releases, alongside significant reports from the pharmaceutical and oil sectors. The firm’s analysts are focusing on actionable insights derived from channel checks, alternative data analysis, expert opinions, and direct industry conversations to identify stocks primed for outsized price movements in the near term.
One standout stock highlighted by Jefferies is Spotify (SPOT), which has experienced a remarkable 54% year-to-date increase as of Thursday afternoon. Analyst James Heaney has set a $845 price target, representing a 25% upside from Wednesday’s closing price. Jefferies believes the stock’s potential extends both in the short and long term. While gross margin progression has slowed this year due to Spotify’s investments in its video podcast venture, the company’s top-line trends remain positive. The analysts anticipate a subscriber beat, with a guide of +5M subscribers into 2Q25, a key factor driving the positive outlook. Spotify is scheduled to report its earnings on Tuesday.
Boeing (BA) is another company Jefferies recommends, with the potential for a 13% increase from its current price. The stock has already surged 32% in 2025. Jefferies’ estimates indicate a total of 413 737 aircraft for 2025, with over 50% coverage of the 209 deliveries in the first half. This projection, coupled with a sustained 38/mo production rate, is expected to add approximately $10M in free cash flow. Each additional MAX aircraft further enhances this positive impact. Boeing’s earnings are also due on Tuesday.
Clorox (CLX) is also receiving a positive recommendation from Jefferies. Shares of Clorox have declined 19% year-to-date, trading at approximately 19x 2FY earnings, considerably below the 10-year average of 24x. Jefferies anticipates a broad-based earnings beat, driven by increased shipments exceeding consumption as retailers prepare for Clorox’s July ERP transition. Analyst Kaumil Gajrawala has set a $145 price target, representing a 10% increase from Wednesday’s closing price. The analyst believes this stock represents a compelling investment opportunity given its current valuation and anticipated performance. Jefferies also highlighted LPL Financial and Fair Isaac as stocks to watch ahead of their respective earnings announcements.
