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'Practically stealing': Jefferies mapped out dozens of cheap stocks worth owning in a coronavirus-stricken market. Here are 10 of their top picks.

Mar 16, 2020, 23:40 IST
Associated Press
  • Equity analysts at Jefferies have compiled a list of stocks across sectors they deem attractive during this period of severe market volatility, as the coronavirus outbreak spreads.
  • They included companies that "held up well in the last downturn, businesses that are well differentiated vs. peers and stocks that have both yield and the cash-flow to support their dividend."
  • For instance, analysts recommended Planet Fitness. Shares have plunged 45% from recent highs, though the business benefits from predictable revenue streams and consumers' focus on health and wellness.
  • Visit BI Prime for more investing stories.

The Federal Reserve's emergency interest-rate cut and unprecedented easing measures did little to slow selling that's rocked the stock market for weeks. The S&P 500 plummeted roughly 10% on Monday after trading was halted, and major US indexes languished throughout the day.

The losses dragged US stocks further into bear market territory and showed just how rattled investors are about the economic fallout of coronavirus. As of Monday, the Dow Jones Industrial Average and S&P 500 in the US were both down around 25% from their respective all-time highs hit just last month.

Amid the wreckage, equity analysts and strategists are laying out stock picks and investment strategies to try and weather the storm. In a note to clients on Monday, equity analysts at Jefferies compiled a list of stocks across sectors they deemed attractive during this period of severe market volatility.

Analysts at the New York-based investment bank selected "high-quality names" that investors ought to own "across a cycle," with "healthy cash-flow and very robust balance sheets."

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"The companies below include those that held up well in the last downturn, businesses that are well differentiated vs. peers and stocks that have both yield and the cash-flow to support their dividend," they wrote.

For instance, analysts recommended Planet Fitness; shares have plunged around 45% from recent highs, though the business benefits from predictable revenue streams and consumers' focus on health and wellness, they wrote.

Altogether, analysts names nearly 50 buy-rated stocks from each sector they cover, which excludes the utilities sector.

Below, we list one stock from each sector that Jefferies recommended: information technology, healthcare, financials, consumer discretionary, communication services, industrials, consumer staples, energy, real estate, and materials.

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