The consumer stocks primed to be big winners from AI, according to Jefferies

Jefferies believes that in the new world order of agentic artificial intelligence, retail companies adopting technology to increase personalization and product innovation will have a leg up over their competitors. “AI is reshaping retail by shifting discovery and purchase decisions to agentic intermediaries, raising the bar for brand relevance and execution,” Jefferies analyst Randal Konik wrote in a note to clients. “When generating recommendations, AI agents prioritize product superiority, distinct design, pricing architecture, and post-purchase services,” he said. “Retailers must ensure their product data and positioning are optimized across AI agents or risk being de‑prioritized by algorithms, reducing consumer visibility and gradually eroding online traffic and conversion.” The pace of AI adoption will help separate the winners and losers in the sector, according to Konik, as the laggards are deprioritized by algorithms, thereby reducing consumer visibility and, over time, eroding online traffic and conversion. Brand personalization will be a core competitive lever, he said, with the companies deploying AI across pricing, marketing and recommendations able to see stronger conversion, market share consolidation and higher traffic versus peers. Konik pointed to gym operator Planet Fitness as a prime operator. “PLNT is leveraging AI‑driven [customer relationship management] and predictive churn models to strengthen retention, personalize workouts, and target content across its large member base, deepening engagement and lifetime value,” Konik said. The analyst’s $175 price target implies 119% upside for the stock from Thursday’s close. Jefferies’ price target is the highest on Wall Street, according to LSEG. Online fashion retailer Revolve Group is another stock Konik favors, as the company has done a good job using AI to accelerate product innovation and drive differentiation. He sees shares rising about 62% from here. Revolve has replaced its third-party search vendor with an internally developed AI search algorithm, Konik said. The decision has led to double-digit gains in conversion, which is when browsers become buyers, and eliminated recurring vendor fees, he said. “RVLV also leverages generative AI in owned-brand design to instantly visualize products across materials and colors, materially reducing development time and sample costs,” he said. Similarly, home appliance maker SharkNinja has used AI to accelerate research and development and widen innovation gaps. Konik sees 74% upside ahead for the stock. “SN has embedded AI across its product innovation flywheel. The company moved from manually reviewing < 5% of contact center interactions to using AI to review ~100% of customer conversations, applying the data into product development, enabling faster iteration and more precise innovation,” the analyst said. Konik added that the strongest contenders in the AI race are companies that are deploying multiple use cases for agentic AI across the organization. These companies are also investing in retraining their commercial teams to operate alongside AI tools in real time. Konik said companies adapting to AI early will gain a significant advantage once agentic AI becomes the primary interface for online commerce. For instance, outdoor recreation product maker YETI is making strides in integrating AI across its core business functions. “YETI is deploying AI to improve e-commerce conversion, a conversational shopping assistant (Ranger) to assist with product discovery and the consumer journey,” he wrote. Konik expects YETI shares to rally 64% from here. Finally, the analyst also highlighted Signet Jewelers as a winning stock. His $150 price target predicts 60% upside from Thursday’s close. “SIG employs AI for inventory distribution and AI-driven ‘strategic revenue management’ to optimize pricing and promotions. The company also utilizes AI to create a comprehensive ‘Customer Data Platform,’ enabling tailored clienteling and proactive outreach based on major life milestones,” he said.