Jefferies is eying a collection of stocks that could be poised for a breakout, and analysts are already increasing their earnings estimates for them. The fourth-quarter earnings season has so far seen resilient profits from companies despite the overhang of macroeconomic concerns and signs that the Federal Reserve may cut interest rates later in 2024 than previously expected. Data from LSEG estimates a nearly 8% increase in earnings growth in the current earnings season, up from less than 5% just three weeks ago. Looking ahead, Jefferies Equity Research screened for stocks that could have more room to run, based on the following criteria: Stocks on the list are U.S. companies with a market capitalization of at least $4 billion Average sell-side analyst price target upside of at least 15% Stocks have seen higher 2024 earnings estimates over the past three months Small home appliance maker SharkNinja made the list, although shares have slipped 7% since the start of the year. SN YTD mountain SharkNinja stock. Analysts remain optimistic on the stock, however, with estimates rising on average by roughly 5% over the past three months. Average analyst price targets imply nearly 23% upside for SharkNinja over the next 12 months. Guggenheim initiated coverage of SharkNinja late last week with a buy rating. Analyst Steven Forbes highlighted the company’s “industry leading” roster of appliances and products that are likely to underpin near-term outperformance. SharkNinja will report fourth-quarter results on Feb. 15. The dominant ecommerce platform Amazon also made the Jefferies cut. Shares have climbed 12% from the start of the year. Earnings estimates have risen on average by more than 15% over the past three months. AMZN YTD mountain Amazon stock. Amazon beat Wall Street estimates on the top and bottom line in the fourth quarter , and also issued a higher-than-expected first-quarter sales forecast. Other stocks that made the list include GMC and Chevy truck maker General Motors and Live Nation Entertainment . — CNBC’s Michael Bloom contributed reporting
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