In a sell-off like the one we are going through now, almost all stocks get hit to some degree. The main difference is that, in hot momentum stocks that become overcrowded, investors with big gains are always tempted to sell those first and fast so they can retain as much of the capital gains. Solid value stocks that are either underperforming or out-of-favor tend to not only hang in better, they actually can gain sponsorship if fundamentals look to be improving.

A new Jefferies research report focuses in on what the firm calls “compelling value” stocks, which are likely to see a re-rating or move higher. These three make good sense for growth investors looking to either move capital around or put some dry powder to work. All are rated Buy at Jefferies.

CBS

This large cap broadcaster has taken a beating this past year, but it has bounced off the lows and could be an incredible value. CBS Corp. (NYSE: CBS) may be in the best position of all the broadcast networks with an outstanding prime time lineup. With solid sports franchises like the NFL, March Madness College Basketball, the Masters and other top programming, the venerable network could once again be an outstanding stock for shareholders.

The company is leading in the winter ratings and is poised to continue the network’s programming dominance in 2015. The broadcasting giant is now in the midst of a significant stock repurchase process, and many on Wall Street expect CBS to shrink its share base by about 25% over the next two years.

Network advertising and strong content licensing revenue drove the upside in the third-quarter earnings, which beat consensus estimates despite a slight revenue miss. Similar to the broadcasting giant’s rivals, many analysts expect CBS to look to book content licensing more evenly over this year and into 2017. Trading at just 11 times 2016 estimated earnings, the stock is cheap, and the analysts think estimates are low.

With Super Bowl 50 set to be shown on CBS, and strong ratings recently from both the NFL and prime time programming, CBS now offers investors solid upside potential with minimum downside risk.

CBS shareholders are paid a 1.35% dividend. The Jefferies price target for the stock is $62, and the Thomson/First Call consensus figure is just a tick higher at $63. Shares closed most recently at $46.73, up almost 4% on the day.
Comcast

This is another broadcasting related stock that could have big upside potential. Comcast Corp. (NASDAQ: CMCSA) is one of the nation’s largest video, high-speed Internet and phone providers to residential customers under the XFINITY brand and also provides these services to businesses. Comcast has invested in technology to build an advanced network that delivers among the fastest broadband speeds and brings customers personalized video, communications and home management offerings.

Comcast has been consistently growing earnings substantially with extremely strong content revenue growth. Increased revenue at NBC Universal is also giving the company some earnings tailwinds, and a growing sports lineup is adding to revenues.

Jefferies sees cable giants like Comcast as a top growth story that still has plenty of room to run and generating solid earnings to support continued stock buybacks.

Comcast investors are paid a 1.87% dividend. Jefferies has a $72 price target, while the consensus target is $70.02. Comcast closed trading Thursday at $55.05.

Coach

This consumer discretionary stock is fighting its way back after getting annihilated last year. Coach Inc. (NYSE: COH) is a leading New York design house of modern luxury accessories and lifestyle brands. The Coach brand was established in New York City in 1941, and has a rich heritage of pairing exceptional leathers and materials with innovative design. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through company’s website.

The stock was a favorite for years before getting absolutely hammered in 2015. In that year, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries.

Many analysts around Wall Street recently have upgraded the company. Jefferies notes that many of the headwinds the company faced last year should dissipate in 2016, and the holiday season seems to have been right on track.

Coach investors receive an outstanding 4.25% dividend. The Jefferies price objective is a whopping $50, and the consensus target is lower at $37.42. The shares closed most recently at $31.76.

The Jefferies analysts have found three outstanding stocks with solid brands and the ability to grow earnings. With pricing points that are very reasonable, all these companies could be offering investors with a degree of risk tolerance solid upside the rest of 2016.

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