A supply-and-demand imbalance in the U.S. economy points to a group of stocks that should benefit from the “restock cycle,” according to analysts at investment bank Jefferies.
But in an Oct. 19 report, a group of equity analysts at Jefferies wrote that the economic recovery in the U.S. has been marked by “incredibly strong retail and housing sales,” and that “restocking efforts by retailers and homebuilders” could cause a sharp rise in demand that can benefit 37 companies and their shares.
The Jefferies analysts pointed out that in the pre-pandemic environment, manufacturers in many industries were trying to keep inventories lean to maximize efficiency. Looking ahead, Jefferies chief economist Aneta Markowska says companies may move from just-in-time inventory management to a “just in case” style, which means greater demand as inventory is built.
Here are the 20 companies listed in the report, all rated “buy” from the Jefferies team, that have the largest market capitalizations. Scroll the table to see all the data.We’re in the middle of third-quarter earnings season, and 12 of those companies had most recently reported quarters ending June 30 or earlier, based on data available from FactSet as of the close on Oct. 16.