Nike and Lowe's are added to Jefferies' Franchise Picks List

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Jira Pliankharom

Nike and Lowe's were added to Jefferies' Franchise Picks List on Tuesday.

Jefferies' Franchise Picks were noted to be among the firm's highest-conviction, buy-rated stocks across U.S. research. The 30 top ideas were noted to be underpinned by differentiated analysis, supported by catalysts, and sit at valuation levels that suggest upside.

Nike (NYSE:NKE [https://seekingalpha.com/symbol/NKE]) was highlighted as remaining the clear category leader. The Jefferies analyst team believes the Street underappreciates the ongoing recovery for the Swoosh. The potential for a clean inventory position by the first half of fiscal year 2027 was flagged, with holiday order books already up compared to a year ago. The firm also anticipates headwinds will ease to pave the way for sales and margin improvement. Notably, Jefferies' F27 EPS on Nike (NYSE:NKE [https://seekingalpha.com/symbol/NKE]) is well ahead of consensus.

For Lowe's Companies (LOW [https://seekingalpha.com/symbol/LOW]), Jefferies anticipates that an acceleration in comparable sales growth is on the horizon. The comp strength is seen being driven by ongoing growth in the repair and remodel market, as well as potential for a more conducive macro through lower interest rates and improved housing turnover. "We see shares poised to benefit from market share gains, as Lowe's has: 1) confirmed minimal price hikes thanks to tough negotiations with vendors and 2) integrated ADG and FBM, paving the way for Complex Pro customer spending growth," highlighted the firm.

Shares of Nike (NYSE:NKE [https://seekingalpha.com/symbol/NKE]) edged 0.2% higher in premarket trading on Tuesday. Lowe's (LOW [https://seekingalpha.com/symbol/LOW]) gained 0.1%.

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