As a new trading month kicks off, analysts from Jefferies shared their top stock picks heading into the summer. Uncertainty over tariff policy was the theme that dominated markets to start the year. But stocks saw a rebound in May, with the S & P 500 adding 6.2% and posting its best month since November 2023. Investors are divided on where the market could go from here. On the more optimistic end, Fundstrat Global Advisors’ Tom Lee said that the April sell-off has ” rebirthed the new bull market .” But Evercore’s Julian Emanuel seemed less certain, pointing to historical records suggesting that investors may have to contend with some rocky times ahead . With trade uncertainty likely to be at the forefront of investors’ minds going forward, Jefferies’ top stock picks seem “ready for sunshine or rainclouds,” the firm wrote in a Tuesday note. Jefferies shared 28 of its top buy-rated, highest-conviction ideas that “are underpinned by differentiated analysis, supported by catalysts and sit at valuation levels that suggest upside.” The table below lists 10 of these picks: One of the names on Jefferies’ list was Nvidia . Shares of the chipmaker are up 5% this year. Jefferies’ price target of $185 implies a further upside of 31%. “We view NVDA as the dominant supplier of AI accelerators within the data center, an industry that is expanding rapidly due to the development and adoption of AI,” the firm wrote. “The ramp of the co’s next-generation Blackwell GPU platform is now fully underway, so [ gross margins ] should improve from the low-70% to mid-70% range throughout the year.” Dexcom , the maker of glucose monitoring systems, was another name on Jefferies’ list. Shares have risen 11% in 2025. The bank’s price target of $110 corresponds to an upside of nearly 27%. “We think DXCM is about to capitalize on a major top-line driver as it looks to expand coverage to Type 2 non-insulin (NIT2) patients,” Jefferies wrote. The company has received approval from the U.S. Food and Drug Administration for its 15-day glucose monitoring sensor , and “the conversion to 15-day sensors could be a significant margin driver,” the firm said. Jefferies also singled out Capital One as another winner. The bank’s price target of $230 is nearly 18% above where shares settled on Tuesday afternoon. The firm cited Capital One’s recent acquisition of Discover Financial Services as a major catalyst for the company. “Merger with DFS has been completed, unlocking significant network and OPEX synergies. Additional items that provide conviction on the name are improving credit trends within the COF/DFS books, leading to potentially higher net interest margin coupled with reserve releases,” the firm wrote. Shares of Capital One have rallied more than 9% this year.
