In recent months, international stocks outperformed US-based counterparts. However, a Jefferies Analyst continues to favor the US-based ones because they are cheaper in absolute terms.
Steven DeSanctis believes that the US dollar will remain weak during the second half of 2025. This, he says, will be beneficial to a number of mid-cap stocks in the US.
The iShares MSCI All Country World Index Ex U.S. ETF has gained more than 14% this year.
S&P 500 has lagged behind, with only a return of 0.61%.
Stag Industrial Inc. and Lamb Weston Holdings Inc. are two of the companies listed on the NYSE.
What makes Jefferies so bullish about Lamb Weston?
Jefferies suggests that investors own Lamb Weston stock in an uncertain macroeconomic environment, especially because it surpassed Street expectations for its most recent reported quarter.
The NYSE listed firm also reiterated in April its guidance for the full year, which it referred to as “much necessary to curb the negative sentiment”.
Steven DeSanctis is still positive about LW’s stock, also because the company now works with a strategist “to explore opportunities for value creation as well as operational/cost savings.”
The American food company also pays out a dividend yield of 2.77 percent, making it even more attractive to invest in for months ahead.
DeSanctis is confident in Lamb Weston’s ability to maintain margins and pass higher costs on. The bullish outlook is also attributed to international expansion, continued investment in automation and the supply chain.
Jefferies has set a price target of $75 on Lamb Weston, which indicates a potential upside of more than 40% from the current level.
It is important to note that DeSanctis shares the same positive outlook as other Wall Street analysts, with the current consensus rating of “overweight” on LW’s Idaho-based firm.
Jefferies is bullish on Stag Industrial.
Stag Industrial, which also reported a positive quarter last month and gave a positive outlook for the future on the basis of an increase in cash leasing spreads by more than 27 percent.
Jefferies is still positive on this NYSE listed firm, as the onshoring of production and reconfiguring the supply chain could maintain the positive momentum for leasing spreads.
STAG is well positioned for growth in the long term as companies prioritize logistics efficiency.
Real estate investment trusts (REITs) have a portfolio that is diversified to reduce risks, and their capital allocation is disciplined. This allows for steady returns.
Stag Industrial is attractive to income investors because of its commitment to acquire high-quality assets.
STAG, a stock with a current dividend yield of 4.20% is currently rated as a dividend-paying stock. Jefferies sees the REIT as having upside potential to $45 which would indicate a 30% increase from its current level.
The post Jefferies Names its Favorite US Mid-Cap Stocks for Second Half of 2025 will be updated as new information is revealed.
