Jefferies has outsized conviction that five new stocks in its "Franchise Picks" list could outperform in the new year, including industrial plays Caterpillar and Flowserve . In a Friday note, the investment firm released its updated "Franchise Picks" list, which represents its top ideas heading into 2025. "Jefferies' Franchise Picks are amongst our highest-conviction, Buy-rated stocks across US Research," the firm said. "We believe FLS is well-positioned to drive mid-teens earnings growth through '27, supported by favorable end markets and margin expansion," the analyst wrote. Other new names in Jefferies' list of picks include aerospace stock TransDigm Group and health-care real estate investment trust Ventas .

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Persons: Jefferies, Stephen Volkmann's, Levered, Volkmann, Saree, Flowserve, Surinder, Thind, Ventas Organizations: Caterpillar, Dow Jones Industrial, US Research, Jefferies, Machinery, Flowserve, Systems, TransDigm, Microsoft Locations: Thursday's