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Pro Analysis

Here are 4 ‘sweet spot’ consumer staples stock picks from Jefferies

Tyson Foods' frozen chicken products.
Daniel Acker | Bloomberg | Getty Images
Tyson Foods' frozen chicken products.

Jefferies shared with clients the firm's favorite current stock picks in the consumer staples sector.

"Large-cap staples are in sweet spot this year: more foreign exposure, more stocks in fastest growing bucket, better quality, and better forward, trailing earnings and sales growth," strategist Steven DeSanctis wrote in a report Wednesday.

"Of course, ETFs and passive investing are having a big influence on the performance of sectors. Staples is no exception and these vehicles might have an even bigger impact on these names. Large-cap staples have a big weight in low-volatility ETFs, and with the growth in these strategies, this has boosted large cap names more than small and mid," he added.

Here are four consumer staples buy-rated companies Jefferies recommends and their price targets.

1) Tyson Foods (TSN)

Jefferies analyst Akshay Jagdale has a $75 price target on Tyson Foods, representing 20 percent upside from Tuesday's close.

"Our LT positive thesis is based on TSN's value-added growth which we now believe will be accelerated by the recent acquisition of AdvancePierre. In addition, we continue to see significant LT opportunity to unlock value from the chicken segment."