The kind of sell-off that we have lived through in 2016 has driven metrics and sentiment in the markets to levels not seen since the beginning of the Great Recession in 2008 and 2009. The strategists at Jefferies have one major comment on the extreme bearishness in the market today: It’s not 2008.

One thing that the sell-off has accomplished is to take top companies residing in the Jefferies Franchise Picks list to levels not seen in some time. We screened the list not only for the top stocks that are beaten down, but for the companies that are paying, and can maintain their dividends to shareholders. We found four that are very attractive now. All of course, are rated Buy at Jefferies.

AbbVie

This one of the top global pharmaceutical stocks at Jefferies. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company’s mission is to use its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases. AbbVie markets medicines in more than 170 countries.

The stock fell 10% in late October after an FDA warning about liver risk with the company’s hepatitis C (HCV) products. However, Jefferies points out that this applies to a small sub-population of cirrhotics who are 3% to 5% of the total patient population. Additionally, the next generation HCV product could be launched as early as 2017, and even of the entire Viekira Pak/Technivie business were lost over the next two years, it represents only 4% of net percentage value.

AbbVie announced recently that the supplemental New Drug Application (sNDA) for Viekira Pak to be used without ribavirin has been accepted by the FDA with priority review. The company is looking to get the product’s label expanded for use without ribavirin for the treatment of patients with genotype 1b (GT1b) chronic HCV and compensated cirrhosis (Child-Pugh A).

The company reported mixed fourth-quarter numbers but affirmed guidance, and some on Wall Street were concerned over a new hepatitis C drug from a rival company. The company reported earnings, excluding one-time items, that were up 27% from the year-earlier quarter and a penny over the Thomson Reuters consensus. Revenue rose 18% but was below estimates.

AbbVie investors receive an outstanding 4.35% dividend. The Jefferies price target is $80, among the highest on Wall Street. The Thomson/First Call consensus target is $72.25. Shares closed last Friday at $52.58.

Boeing

Shares of this top aerospace industrial have dropped a whopping 18% since the beginning of the year. Boeing Co. (NYSE: BA) together with its subsidiaries, designs, develops, manufactures, sells, services and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services worldwide.

Jefferies has increased confidence in continuing good demand and notes that Boeing has made announcements in the past that support the thesis that productivity and margins will continue to improve. 787 execution is good as the company works through the backlog, and cash flow looks to be strong with 787 deliveries and C-17 orders. Some Wall Street analysts also point to low oil prices as a bullish indicator for the top carriers who are Boeing’s big customers.

Jefferies thinks that some of the quarterly earnings report was misunderstood, and that trading at a very cheap 10 time free cash flow, the valuation is the best in some time. While there was an accounting change for KC-46 tankers, the 777 rate change was already in the Jefferies numbers, and the 737 rate boost was a positive that was not figured into numbers.

Boeing investors receive a 4.01% dividend. The $165 Jefferies price target is higher than the consensus price target of $145.37. The shares closed on Friday at $108.63.
Ingersoll-Rand

This is one of the many top companies that restructured and are based in Ireland, and it is a top industrial pick at Jefferies. With the housing market continuing to grow, the wide range of portfolio products at Ingersoll-Rand PLC (NYSE: IR) 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.

The company reported mostly inline fourth-quarter results, with an improved operating performance that offset expected headwinds in the global economic environment and some currency issues. A year-over-year decrease in GAAP earnings was attributable to earnings from discontinued operations in fourth-quarter of 2014.

Investors receive a 2.5% dividend. Jefferies has a $65 price target, and the consensus estimate is $62.71. Shares closed on Friday at $51.32.

WestRock

Last summer’s merger of two top packaging and container companies could provide an outstanding opportunity for investors, as the stock has been absolutely mauled since the merger. WestRock Co. (NYSE: WRK) is the completed and merged entity that combined old Rock-Tenn and MeadWestvaco. It is now the second-largest U.S. packaging company, valued at $10.7 billion, trailing only International Paper, with a market capitalization of just under $15 billion. WestRock is expected to generate net sales of $15.7 billion and adjusted EBITDA of $2.9 billion. This includes the impact of $300 million in estimated annual synergies to be achieved over three years.

Jefferies notes that the company announced a stock repurchase program last year of 40 million shares, equal to 15% of the shares outstanding. It also announced a very generous 17% increase in the dividend. The current dividend will be $1.50 per share or $0.375 per quarter.

Late last year, the company saw a flood of investment from some of the top hedge funds, with as many as 41 adding the stock to their portfolios. The company reported fiscal first-quarter 2016 net sales of $3.68 billion million, a rise of 46.4% compared to net sales of $2.51 billion in the fiscal first quarter of 2015.

WestRock investors will receive a 4.83% dividend. The Jefferies price target is $56. The consensus target is $70.56 and shares closed Friday at $31.03.

While the landscape still looks scary, yet of all the indexes around the world, the United States and the S&P 500 may very well be the best performing this year. Investors with some dry powder may want to wade in and scale some buying on these top companies.

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