Investing

Jefferies Has 3 Top Blue Chip Value Stocks to Buy Now

Lee Jackson

Published: February 23, 2016 9:45 am

Last Updated: March 13, 2020 5:25 pm

The tide for the markets may be starting to turn, and the follow through Monday on the heels of last week’s positive trading may be just what investors need to feel more comfortable. Plus, short sellers who have hammered the markets since the beginning of the year are finally starting to take their chips off the table. One thing the selling has done, especially in certain sectors like banking, is to bring blue chip growth stocks into value territory.

In this week’s research for top U.S. value calls, the analysts at Jefferies have focused on some top blue chip names that have traded down into clear value territory. We found three that make good sense for investors now.

Dish Network

Jefferies and others on Wall Street think the value of the Dish Network Corp. (NASDAQ: DISH) spectrum is significantly undervalued by the market. The company, through its subsidiaries, provides approximately 13.9 million pay-TV subscribers, as of Sept. 30, 2015, with the highest-quality programming and technology with the most choices at the best value. It offers a high-definition line-up with more than 200 national high-definition (HD) channels, the most international channels and award-winning HD and DVR technology.

Dish also offers its Sling TV services, which require an Internet connection and are available on streaming-capable devices, including TVs, tablets, computers, game consoles and smartphones, primarily to consumers who do not subscribe to traditional satellite and cable pay-TV services. The company operates Sling International, which offers over 200 channels in 18 languages, and a Sling domestic package that includes over 20 channels and tiers of programming, including sports, kids, movies, world news, lifestyle and Spanish language, and premium content, such as HBO.

The company recently reported inline numbers, but also that is lost 12,000 paying subscribers, which was less than most estimates. Jefferies is not alone in feeling that the company’s spectrum is a highly undervalued asset. Dish Network is constantly rumored to be a takeover candidate. Last summer rumors swirled around a merger with T-Mobile.

The Jefferies price target for the stock is a massive $80. The Thomson/First Call consensus price target is just $68.71. The stock closed Monday at $46.46, up over 5% on the day.

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