Jefferies Backs 10 Low-Stress Stocks as AI Momentum Outruns S&P 500 by 70%
Updated
Updated · CNBC · Jul 7
Jefferies Backs 10 Low-Stress Stocks as AI Momentum Outruns S&P 500 by 70%
1 articles · Updated · CNBC · Jul 7
Summary
Jefferies urged investors to hold 10 "quality, low-stress" stocks for the summer, arguing they can better withstand a potential unwind in AI-led market momentum.
An estimated $700 billion in hyperscaler AI capital spending, questions over eventual profits and rising token costs are fueling volatility, with the S&P 500 momentum index beating the broader market by more than 70% since 2024.
AbbVie and Netflix were among Jefferies' top picks after the bank screened for companies worth more than $10 billion, with strong fundamentals, free-cash-flow yields above 3% and valuations below 20 times forward earnings.
AbbVie posted $15 billion in first-quarter revenue and agreed last week to buy Apogee Therapeutics for $10.9 billion, while Netflix forecast 13% second-quarter revenue growth ahead of results due July 16.