Investing

Jefferies Has 3 Compelling Value Stocks to Buy Now

Lee Jackson

Published: March 17, 2016 10:35 am

Last Updated: March 13, 2020 5:25 pm

Often the top firms we cover at 24/7 Wall St. are positive on a stock and may have it rated at a Buy, but when something positive like earnings or other catalysts start to factor in, the analysts may become even more positive and believe a rerating may be in order. That generally applies to the question of what the market’s current valuation should be, in light of new-found data or direction.

A new Jefferies report features three compelling value stocks that the analysts feel may be in for a rerating or a new valuation due to earnings and outside events. All three are rated Buy at Jefferies.

Oracle

This top software stock has traded sideways since last summer and looks to be breaking out. Oracle Corp. (NYSE: ORCL) develops, manufactures, markets, sells, hosts and supports database and middleware software, application software, cloud infrastructure, hardware systems, and related services worldwide.

The company licenses its Oracle Database software to customers that is designed to enable reliable and secure storage, retrieval and manipulation of various forms of data. Oracle Fusion Middleware software helps customers to build, deploy, secure, access and integrate business applications, as well as automate their business processes.

With shares trading at 14.98 times estimated 2016 earnings, and sporting a solid free cash flow yield, many analysts also feel that is the company’s 12C database cycle starts to contribute during calendar 2016, and the stock could very well be poised for what they term a breakout year. After recent investors meetings, some analysts raised fiscal year 2017 cloud margins to 66% from 63% and earnings per share to $2.80. Some also believe that the software giant may be on the verge of a multiyear database product cycle.

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