Often the top firms we cover at 24/7 Wall St. are positive on a stock and may have it rated at a Buy, but when something positive like earnings or other catalysts start to factor in, the analysts may become even more positive and believe a rerating may be in order. That generally applies to the question of what the market’s current valuation should be, in light of new-found data or direction.

A new Jefferies report features three compelling value stocks that the analysts feel may be in for a rerating or a new valuation due to earnings and outside events. All three are rated Buy at Jefferies.

Oracle

This top software stock has traded sideways since last summer and looks to be breaking out. Oracle Corp. (NYSE: ORCL) develops, manufactures, markets, sells, hosts and supports database and middleware software, application software, cloud infrastructure, hardware systems, and related services worldwide.

The company licenses its Oracle Database software to customers that is designed to enable reliable and secure storage, retrieval and manipulation of various forms of data. Oracle Fusion Middleware software helps customers to build, deploy, secure, access and integrate business applications, as well as automate their business processes.

With shares trading at 14.98 times estimated 2016 earnings, and sporting a solid free cash flow yield, many analysts also feel that is the company’s 12C database cycle starts to contribute during calendar 2016, and the stock could very well be poised for what they term a breakout year. After recent investors meetings, some analysts raised fiscal year 2017 cloud margins to 66% from 63% and earnings per share to $2.80. Some also believe that the software giant may be on the verge of a multiyear database product cycle.

Oracle recently reported solid results in which license earnings were below estimates, but revenue from the cloud was much higher. Jefferies continues to believe fiscal 2016 will be a trough year for company in many ways and notes that the maturing sales force and selling strategy is beginning to unlock pent-up cloud demand within the company’s sizable customer base.

Oracle investors receive a 1.55% dividend. Jefferies has $50 price target, and the consensus price objective is $43.50. The stock closed Wednesday at $40.22, up almost 4% on the day.

PG&E

This is a utility that investors can feel super-comfortable owning now. PG&E Corp. (NYSE: PCG) is one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, the company delivers energy to nearly 16 million people in Northern and Central California. It operates 141,215 circuit miles of electric distribution lines, 18,616 circuit miles of interconnected transmission lines, 42,141 miles of natural gas distribution pipelines and 6,438 miles of gas transportation pipelines. It also operates generation facilities with energy sources such as nuclear, hydroelectric, fossil fuel-fired and photovoltaic.

The company may be facing potential fines as a result from a reported trial scheduled to begin in April. Jefferies feels that while the potential fines facing the company may seem daunting at this point, he company ultimately will not be materially affected. Therefore the firm reiterated its Buy rating on the stock.

Shareholders are paid a 3.17% dividend. The Jefferies price target is $64.50, and the consensus estimate is $59.24. Shares closed on Wednesday at $58.06.

Synchrony Financial

Hit hard since late July, this company may be the perfect value financial for a growth portfolio. Synchrony Financial (NYSE: SYF) is one of the nation’s premier consumer financial services companies. It is the self-described largest provider of private label credit cards in the United States based on purchase volume and receivables. It provides a range of credit products through programs established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and health care service providers to help generate growth for the company’s partners and offer financial flexibility.

Jefferies has noted in the past that private label cards are gaining share, and research suggests a continuation of that trend. The firm also notes that retailers continue to push back on rates, and private label cards offer more of a symbiotic relationship for retailers. The analysts also believe that Synchrony offers the potential for solid capital returns after the spin-out from General Electric.

The analysts hosted calls with management recently, and they feel the company is well positioned for loan growth and that the private label cards will continue to outpace general purpose ones. They also think the company will begin to offer shareholders a dividend and could also announce a share repurchase program.

The Jefferies price target is posted at $42. The consensus target is $37.05. Shares closed Wednesday at $27.62.

All three companies fit the definition of rerating, with various outside items like earnings and additional catalysts paving the way for valuation changes. They also offer solid entry points for investors looking to add them to portfolios now.

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