One thing that always makes for a good rule of thumb when buying stocks is to look for solid companies with good upside potential and products or services, and where the stocks have been unmercifully sold off. There is a plethora of reasons why good companies take a dive. This can be bad earnings, negative headlines, a change in senior management, and a few dozen more reasons – including simple overreactions during a market selloff.

When good companies are hammered, and the long-term prospects and fundamentals remain solid, it’s often a good time to buy.

In a new research report from Jefferies, they are out with a list of the 15 most oversold stocks on the S&P 500. The firm’s analysts noted that the stocks are trading at a huge deficit from a standard deviation basis to the company’s 50 day moving average.

While that often is a scary statistic to technical analysts, it can also offer some big upside potential. We identified four that could have solid upside potential for the second half of 2016, all of which pay good dividends.

Eaton Corporation

This stock took a big leg down last week as a result of the Brexit vote, and may be a good buy here. Eaton Corporation plc (NYSE: ETN) operates as a power management company worldwide. Its Electrical Products segment offers electrical components, industrial components, residential products, single phase power quality products, emergency lighting, fire detection products, wiring devices, structural support systems, circuit protection products, and lighting products.

The company’s Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, explosion-proof instrumentation, utility power distribution products, power reliability equipment, and services.

The Hydraulics segment offers a range of power products; controls and sensing products; fluid conveyance products; thermoplastic hoses and tubings, couplings, connectors, and assembly equipment; filtration systems solutions; industrial drum and disc brakes; and golf grips. Lastly, the Aerospace segment provides hydraulic power generation systems, controls and sensing products, fluid conveyance products, and fuel systems for commercial and military use.

Eaton shareholders are paid a very nice 3.93% dividend. The Thomson/First Call consensus price target is posted at $65.13. The shares closed Wednesday at $58.09, up 2.3%.

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Ingersoll-Rand

This is one of the many companies top companies that restructured and is based in Ireland. Ingersoll-Rand Plc (NYSE: IR) is another top industrial stock to buy and with the housing market continuing to grow, the company’s wide range of portfolio products should continue to sell well. Many on Wall Street also see the stock as a good play on the replacement, upgrade and, ultimately, growth in the commercial and residential air conditioning markets. Trends in these markets have been highly correlated with overall commercial construction and are thus earlier in the cycle.

Ingersoll Rand has an outstanding portfolio of global brands and holds leading market share in all major product lines. The geographic and industrial diversity coupled with a large installed product base provides solid growth opportunities for the company within service, spare parts and replacement revenue streams. Again, the Brexit stress seems like a culprit.

Ingersoll-Rand investors are paid a 2.07% dividend. The consensus price objective is posted at $72.95. Shares closed on Wednesday at $61.84.

Royal Caribbean Cruises

This company looks solid as many people continue to take expensive cruises. Royal Caribbean Cruises Ltd. (NYSE: RCL) operates cruises under the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France, and TUI Cruises brand names. The Royal Caribbean International brand provides cruise itineraries ranging from 2 to 24 nights with options for onboard dining, entertainment, and other onboard activities to various destinations.

The Celebrity Cruises brand offers cruise itineraries ranging from 2 to 18 nights to various destinations; and operates onboard upscale ships that offer accommodations, fine dining, personalized services, and spa facilities. The Azamara Club Cruises brand offers cruise itineraries ranging from 3 to 20 nights that serve the up-market segment of the North American, the United Kingdom, and Australian markets.

Royal Caribbean’s Pullmantur brand provides cruise itineraries ranging from 2 to 15 nights with food and entertainment options for families and couples. The CDF Croisières de France brand offers seasonal itineraries to the Mediterranean, Europe, and Caribbean markets. The TUI Cruises brand provides onboard activities, services, shore excursions, and menu offerings for the German cruise market.

Shareholders are paid a solid 2.3% dividend. The consensus price target is posted at a whopping $98.17. The shares closed Wednesday at $67.83.

Omnicom Group

This is one of the world’s top advertising agency conglomerates. Omnicom Group Inc. (NYSE: OMC) provides advertising, marketing, and corporate communications services. It offers a range of services in advertising, customer relationship management, public relations, and specialty communications areas.

The company’s services include advertising, brand consultancy, content marketing, corporate social responsibility consulting, crisis communication, custom publishing, data analytics, database management, direct marketing, entertainment marketing, environmental design, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare communications, and in-store design services.

Omnicom also provides interactive marketing, investor relations, marketing research, media planning and buying, mobile marketing, multicultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, reputation consulting, retail marketing, search engine marketing, social media marketing, and sports and event marketing services.

Shareholders are paid a very nice 2.75% dividend. The consensus price objective is $82.27, and the shares closed yesterday at $80.10.

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Four outstanding companies, that are all among the most oversold on the S&P 500. While they may not trade straight up, they all offer patient growth investors a great entry point, and future upside potential.

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