Needless to say, after Tuesday’s plunge, investors are starting to fear what we have warned about. Typically corrections tend to act in a similar manner, and this one seems to be doing just that, looking to retest the lows printed in late August. While the roller-coaster ride is gut-wrenching, investors with some dry powder can take advantage of top value stocks currently on sale.

Jefferies continues to comb through its universe of value stocks to buy, and in a new research report presents the stocks that look poised offer significant upside. We found three that look extremely well priced now.

DSW

This company ranks high as one of the favorite stores to buy something everybody has to have. DSW Inc. (NYSE: DSW) is a leading branded footwear and accessories retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear and accessories for women, men and kids. As of August 11, 2015, DSW operates 449 stores in 42 states, the District of Columbia and Puerto Rico, and it operates an e-commerce site and a mobile website.

The stock has been very weak lately and is trading near three-year lows. While the 2015 growth outlook is weaker than some on Wall Street expected, Jefferies thinks DSW is in the midst of a solid turnaround as it evolves to a multi-channel retailer. While second-half numbers could continue to bog down shares, the margins are expected to get back to 12%, which suggests much higher earnings power.

DSW investors are paid a 2.82% dividend. The Jefferies price objective for the stock is $37, and the Thomson/First Call consensus target is lower at $36.67. The stock closed Tuesday at $28.39.

ALSO READ: Deutsche Bank Raises Price Targets on Top Conservative Utility Stocks

Ingersoll-Rand

This top company is based in Ireland. Ingersoll-Rand PLC (NYSE: IR) is a top industrial stock to Buy at Jefferies, 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. Jefferies points out that the stock has underperformed the S&P 500 by 14% since the end of the second quarter.

Ingersoll-Rand investors are paid a 2.15% dividend. The $78 Jefferies price target is higher than the consensus target of $71. Shares closed on Tuesday at $53.93.

Viacom

Top media companies have been crushed over fears of consumers “cutting the cord” or leaving cable and satellite programming. Viacom Inc. (NASDAQ: VIAB) creates television programs, motion pictures, short-form video, applications, games, consumer products, social media and other entertainment content. Its Media Networks segment provides entertainment content and related branded products through approximately programmed and operated 230 TV channels, including MTV, VH1, CMT, BET, Nickelodeon, Comedy Central, TV Land and SPIKE, as well as through online, mobile and apps.

Earlier in the summer, Viacom delighted shareholders with a very rich 21% dividend increase. It has continued to reward shareholders and enhance its brands worldwide through the creation and acquisition of popular programs, new channels, successful motion pictures and other forms of entertainment, including video game offerings. Jefferies thinks that ratings are turning the corner and point to the massive 41% discount the company trades in relation to its peers, which is much larger than the historical 24% discount.

Viacom investors are paid a solid 3.62% dividend. The Jefferies price target is $60, and the consensus target is in line at $60.84. The stock closed Tuesday at $44.14.

ALSO READ: 3 Defensive Energy Stocks to Buy Now as Sector Struggles Continue

These three stocks offer investors outstanding entry points into companies with well-established franchises. In what may be a still pricey market, they make good sense for growth accounts looking to add value, and they are far safer than high-volatility momentum stocks.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.