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The stock market has turned into a roller coaster, but at least for investors it isn’t going down every day anymore. Despite the big rallies of last week and Monday, the market is still down solidly for the year, and it will take some good earnings and economic news to push us back to even for 2015. One good area for investors to look now is value, and a new report from Jefferies highlights some stocks that investors may not perceive as true value companies.

The Jefferies team has taken the old value tenets, which have typically been low multiples and valuations, and under-appreciated sector status, and applied them to companies of all market caps. We screened the Jefferies list of stocks to buy, and found some outstanding recommendations.

Citigroup

This large cap banking giant would usually not hit the value screen, but it does at Jefferies and could have solid upside. Citigroup Inc. (NYSE: C) is very cheap, trading at just 9.15 times estimated 2015 earnings, and it is the nation’s fourth-largest bank by assets. Numerous Wall Street analysts cite the fact that Citigroup will be a leader in buyback payouts to shareholders. Combined with the bank’s strong domestic and international business, and a better overall economy, plus the headline risk over bank stress tests being removed, share purchases look wise here.

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Jefferies upgrades the stock to Buy and points out that Citigroup trades at 85% tangible book value (TBV), which is where the stock has found support in the past. While the firm did lower its numbers, Jefferies thinks that is priced in and sees the TBV growing 14% by this time next year.

Citigroup investors are paid a small 0.4% dividend. The Jefferies price target for the stock is $60, and the Thomson/First Call consensus price target is $64.34. Shares closed most recently at $51.06.
Micron Technology

This top technology stock has been absolutely mauled this year and we recently highlighted the company’s new value designation. Micron Technology Inc. (NASDAQ: MU) trades at a 3.38 price to cash flow figure. Since January the stock is down a massive 50%, and over 30% since the end of June. Many on Wall Street feel at these lower levels the company is a potential takeover candidate. It posted better than expected earnings last week, and while guidance was worse, the Jefferies team feels that is priced into the stock.

Micron Technology is a global leader in advanced semiconductor systems. Its broad portfolio of high-performance memory technologies, including DRAM, NAND and NOR flash, is the basis for solid state drives (SSDs), modules, multichip packages and other system solutions. The company’s memory chip solutions enable the world’s most innovative computing, consumer, enterprise storage, networking, mobile, embedded and automotive applications.

Micron and Intel announced recently the availability of their 3D NAND technology, the world’s highest-density flash memory. Flash is the storage technology used inside the lightest laptops, fastest data centers and nearly every cell phone, tablet and mobile device. As noted above the collaboration with Intel on the 3D XPoint also creates new opportunities in SSDs. The UBS team also thinks that Micron has the most room to improve in enterprise grade SSD controllers, which include the electronics that bridge the flash memory components to the SSD input/output interfaces.

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The Jefferies price target is a whopping $30 and the consensus target is $26.21. Shares closed Tuesday at $18.22.

AT&T

This company posted solid second-quarter numbers, and many on Wall Street think the third quarter will be good as well. AT&T Inc. (NYSE: T) has to be one of the most ignored dividend plays on Wall Street. In fact, AT&T is the third most underweighted security, and the most under-owned by active fund managers, according to research data. While growth has been admittedly slower over the past few years, the company continues to expand its user base, and strong product introductions from smartphone vendors has not only driven traffic, but increased device financing plans, an area that many on Wall Street believe could lead to some earnings weakness.

Late last month AT&T reiterated 2015 guidance for double-digit revenue growth and continued consolidated margin expansion. Management expects capital spending to increase sequentially, and they also estimate that free cash flow could be better than $4.5 billion. Third-quarter wireless subscriber additions are also expected to come in slightly higher than many Wall Street estimates, and DirecTV saw positive video additions where many expected losses.

AT&T investors are paid an outstanding 5.64% dividend. The Jefferies price target is $40, and the consensus estimate is $37. Shares closed Tuesday at $33.31.

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These three top stocks offer not only tremendous value, but a degree of safety. While the recent moves higher in the market have helped to soothe investors, the bottom line is higher volatility is probably here to stay. So large cap value isn’t a bad place to reside for a while.