Analysts at investment bank Jefferies have named the tech and semiconductor stocks to buy as it updated its strategy for the rest of the year, highlighting "quality" picks across the U.S., Asia and Europe. The firm warned against taking an "extreme" position in either value or growth stocks — so-called value stocks tend to be priced cheaper than the rest of the market, while growth stocks are expected to grow rapidly, though are often more expensive. It comes as some analysts argue the rotation towards value stocks could be nearing its end, as investors eye growth stocks once again . Instead, Jefferies' analysts suggested hitting the "middle" and produced three screens: stocks with growth at a reasonable price, stocks with quality at a reasonable price and those with growth at a reasonable yield, all of which have earnings momentum, the analysts led by Desh Peramunetilleke said in a research note published Monday. Its picks come from a variety of sectors, with the bank overweight on tech, materials and consumer goods and underweight "extremes" such as financials and property. Here's a selection of its picks in tech hardware, software and semiconductors: Tech hardware Both Samsung Electronics and its affiliate, battery company Samsung SDI , are stock picks on Jefferies' growth at a reasonable price list, along with Taiwanese companies Delta Electronics , Unimicron Technology and Nan Ya PCB . Chinese electronics components firm BOE Technology Group makes the same list, while PC-maker Lenovo is on Jefferies' growth at a reasonable price screen. In the U.S., Apple makes its quality at a reasonable price list, along with European pick Ericsson . Software Chinese company Venustech is on Jefferies' quality stocks with reasonable growth list, while Indian firm Tech Mahindra makes its growth at a reasonable yield list. In the U.S., cybersecurity firm NortonLifeLock makes Jefferies' quality stocks list. Semiconductors The investment bank likes Taiwanese manufacturer TSMC and Korean memory semiconductor company SK Hynix , which are both picks under its growth at a reasonable price screen. Meanwhile, Taiwanese firm Novatek Microelectronics appears on its quality at a reasonable price list. U.S. semiconductor stocks on Jefferies' quality at a reasonable price list include Texas Instruments , Skyworks Solutions , KLA and Qorvo . In Europe, firms on the bank's quality list include STMicroelectronics and BE Semiconductor Industries (Besi). "One way to avoid the distraction of the value versus growth moves is to avoid the extremes and follow the earnings," Jefferies analysts stated. "Indeed, earnings revisions have been a consistent outperformer this year across most regions, outperforming this year and over the past three months. At the same time, quality has been the most improved style, outperforming significantly over the past three months. Hence, we advise focusing on quality/growth at a reasonable price," they said.
Narumon Bowonkitwanchai | Moment | Getty Images
Analysts at investment bank Jefferies have named the tech and semiconductor stocks to buy as it updated its strategy for the rest of the year, highlighting "quality" picks across the U.S., Asia and Europe.