Jefferies' recommended affordable stocks for 2026.

Jefferies’ Affordable Stock Recommendations for 2026

Wall Street investment bank Jefferies has made significant recommendations regarding affordable stocks as we approach 2026. The bank pointed out that the market has contracted and forecasts that small and mid-cap stocks will exhibit stronger growth in the coming year. Companies with accelerating earnings and sales growth rates are noted as having the potential for further upside.

Jefferies' Stock Basket

Jefferies stated, “We analyzed companies with improving earnings/sales growth rates, affordable according to our GARP criteria, exhibiting positive momentum, and with a market value of under $55 billion.” Here are some of the stocks recommended by Jefferies:

• Lincoln Electric Holdings (LECO)
• Lattice Semiconductor (LSCC)

Particularly notable is Lattice Semiconductor, a technology stock that has gained approximately 20% this year. Jefferies has set a target price of $85 for this stock, which offers a potential upside of around 20% over the current closing level. Lattice's strong position in the artificial intelligence and edge computing markets makes this an attractive buying opportunity.

High Performance Expectations

Jefferies believes Lattice justifies its high valuation, stating, “Upcoming catalysts include new generation server deployments, hyperscale investments, and increasing market share gains in the mid-tier FPGA market.”

Another recommendation on the bank's list is Entergy, which has risen 24% so far in 2025. Jefferies has set a target price of $116 for this stock, which represents a value approximately 23% above yesterday's closing level. Entergy stands out with its opportunities related to data center growth and overall industrial recovery. The company is highlighted as a fully regulated public utility serving the Gulf Coast region.

In conclusion, Jefferies notes that Entergy has demonstrated double-digit earnings per share growth among utilities, which is described as “unprecedented.”