Investing

4 Top Jefferies Value Stocks to Buy This Week

Dish Network

Not only is this an outstanding value, the company remains a very attractive takeover candidate. Dish Network Corp. (NASDAQ: DISH), provides approximately 13.9 million pay-TV subscribers, as of June 30, 2015, with the highest-quality programming and technology with the most choices at the best value. Subscribers enjoy a high-definition line-up with more than 200 national HD channels, the most international channels and award-winning HD and DVR technology.

The Jefferies team thinks that the company holds some of the top high band frequencies that other carriers may be very interested in leasing. They note that Verizon in particular, which reported earnings last week, may be looking to add those frequencies, and the analysts continue to believe that a solid leasing deal could emerge.

The Jefferies price target is a monster $100, and the consensus target is much lower at $74. Shares closed on Monday at $62.29.

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VMware

This stock reported very solid numbers but is down huge over the past two weeks, dropping 30% since the Dell-EMC deal was announced. VMware Inc. (NYSE: VMW) is a global leader in cloud infrastructure and business mobility. Its industry-leading virtualization technology solutions deliver a brave new model of IT that is fluid, instant and more secure. Customers can innovate faster by rapidly developing, automatically delivering and more safely consuming any application. With 2014 revenues of $6 billion, VMware has more than 500,000 customers and 75,000 partners.

The company is adding enterprise license agreements at a furious pace, and cloud management tools are now 16% penetrated into the customer base, with plenty of room to grow. The bottom line: this company is back, and back with a vengeance. But the stock still is trading almost 37% below highs printed in April of 2014.

Of course the big issue is how many of the company’s shares will hit the tape as a result of the Dell deal with EMC, which was a concern even before the deal surfaced. Jefferies feels that VMware will continue to trade at a discount to intrinsic value because of the overhang, but it sees big upside to the stock from current trading levels. In fact, with the big drop recently, the stock is now trading at levels the analysts assign to the value of its existing maintenance stream.

The Jefferies price target is $83, and the consensus target is posted at $77.71. The shares closed Monday at $59.74.

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The Jefferies analysts are focusing on companies with solid balance sheets, good forward estimates and low valuations. These are the traits that investors should start to look for as the market gets ready to move away from the ultra-low interest rate environment of the past six years.

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