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Jefferies says these cheap stocks can see sharp postelection gains

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The firm found several buy-rated stocks that were cheap in the first and second quarters, have seen recent upward revisions and have higher beta scores.

Select cheap names could be poised to jump in a postelection market, according to Jefferies. The market went on a tear in the week following President-elect Donald Trump's win at the polls, with the S & P 500 , Nasdaq Composite and Dow Jones Industrial Average touching fresh highs Monday. The rally has taken a breather since then, however.

The firm's $50 price target suggests 21% potential upside for the stock, which has gained 21% this year. "Aside from our expectation of rising prices for the commodities it produces, Alcoa is also taking measures to continue its operational improvements under new mgmt," the note read. "This stock is under-owned, in our view, and is poised to outperform in 2025.

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