The higher the market goes, the more dangerous it gets. However, given the alternatives, investors are likely to stay in, and they seem to buy every significant dip. Despite the rush to all-time highs, some top stock picks are turning into top value picks. A new research report from Jefferies highlights value stocks to buy this week.
The Jefferies team has truly found some noteworthy companies to buy, and some are Wall Street favorites that for one reason or another were sold off or have fallen out of favor. We screened the Jefferies list for the stocks with the biggest upside to the posted price targets.
This stock is a solid play on the propane industry. AmeriGas Partners L.P. (NYSE: APU) has the advantage of having a very large propane footprint. Propane usually trades at almost twice the price of spot natural gas. The consumer is often in a rural or outlying areas, and there is no major competition to speak of. AmeriGas operates as a retail and wholesale distributor of propane gas, and related equipment and supplies in the United States. It serves approximately 2 million residential, commercial, industrial, agricultural, wholesale and motor fuel customers in 50 states through approximately 2,500 propane distribution locations.
The stock has been sold off pretty hard, and the Jefferies team sees this as a very solid buying opportunity. They also point out that unlike other master limited partnerships, this company is not constantly going to the equity markets to raise capital, and that is a big plus for unitholders.
AmeriGas investors are paid a very rich 7.77% distribution. The Jefferies price objective is $53, and the Thomson/First Call consensus target is $50.43. AmeriGas closed Monday at $47.37.