With the markets continuing the Santa Claus rally melt-up, those who are taking profits are stuck with what most consider a good problem. Where to put the capital? And is it the least bit safe to even put that capital back in now? While the markets have been on a record run, there are still stock ideas to add that fall into the value category.

As we have written before, value stocks are shares of a company with solid fundamentals that are priced below those of its peers, based on analysis of price-to-earnings ratio (P/E), yield and other factors.

The analysts at Jefferies regularly have a group of value stock ideas that are rated Buy, and in a recent research report highlighted four that look like solid ideas for 2018.

Air Products

This company has seen some solid insider buying over the past couple of years. Air Products Inc. (NYSE: APD) produces atmospheric gases, including oxygen, nitrogen, argon and rare gases; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas; and specialty gases.

The company also provides equipment for the production or processing of gases, comprising air separation units and non-cryogenic generators for customers in various industries, including metals, glass, chemical processing, electronics, energy production and refining, food processing, metallurgical, medical and general manufacturing. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction and liquid helium.

The Jefferies team recently upgraded the shares to Buy and said this in the report:

We’re more convinced that better industrial demand and capex will occur and be a catalyst for a better relative valuation multiple. If we assume on-site and cylinder rental cash flows get a BAA yield, that implies the growth stub trades at just 8.5x 2018 estimated EBITDA. We also assume the industrial gas companies can grow dividends at an 8.6% compounded annual growth rate through 2020 and still return (or deploy on mergers and acquisitions) almost $37 billion.

Shareholders are paid a decent 2.34% dividend. The Jefferies price target for the shares is $185, while the Wall Street consensus target is $174.11. The shares closed trading on Monday at $162.14.

Ingersoll-Rand

This is one of the many top companies that have restructured and are now 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.

The company has reported solid earnings this year, and the analysts are positive on future growth and said this:

We were out with a note looking at the impact that tax reform could have on the machinery space, particularly in terms of divestitures. Lower rates could reduce the “barrier to exit” for companies with non-core businesses that have a low tax basis. Divesting businesses that act as a drag on growth could boost company valuations. The company’s non-core golf cart and fluid power business generate $800 million in revenue and a divestiture could boost growth.

Ingersoll-Rand investors receive a 2.08%% dividend. Jefferies has a $105 price objective, and consensus price target is $98.25. Shares closed on Monday at $86.64.

Oracle

This top software stock was hit hard recently and is offering a very good entry point. 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, which is designed to enable reliable and secure storage, retrieval and manipulation of various forms of data. Its Oracle Fusion Middleware software aims to build, deploy, secure, access and integrate business applications, as well as automate their business processes.

The company reported mixed results recently but the analysts remain positive, noting this:

Oracle reported earnings last week. Aggregate results were strong but Cloud revenue and cash flow were lighter than anticipated and the stock was off 6%. We believe management’s Feb quarter Cloud guide should prove more accurate and is conservative. We believe business momentum in the field continues to build and will translate into meaningful cash flow growth over time.

Shareholders of Oracle are paid a 1.59% dividend. The $61 Jefferies price target compares with the posted consensus target of $55.83. The stock closed Monday at $47.71 a share.

Stericycle

Jefferies feels this company could see a large benefit from potential tax reform. Stericycle Inc. (NASDAQ: SRCL) collects and processes regulated and specialized waste for disposal services, as well as collects personal and confidential information for secure destruction. It offers regulated solutions for medical waste disposal, pharmaceutical waste disposal and hazardous waste management; sustainability solutions for expired or unused inventory; and secures information destruction of documents and e-media.

The company’s compliance solutions comprise Steri-Safe and clinical services programs for training and consulting; inbound/outbound communications; data reporting; and other regulatory compliance services.

The company also provides reusable sharps disposal management services, an integrated waste stream solutions program and regulated recall and returns management services for expired or recalled products. The company serves health care businesses, including hospitals, physician and dental practices, outpatient clinics and long-term care facilities, as well as retailers and manufacturers, financial and professional service providers, governmental entities and other businesses.

The shares are down 40% in the last two years, and may be offering value investors an incredible bargain. The analysts pointed out:

We conducted an analysis of the company’s competitive pricing data and found that the company will need to concede $120 million-$150 million in SQ price, which compares to management’s $130 million estimate and is well below some estimates we’ve seen of closer to $365 million. Our worst case scenario assumes $165-$175 million. The company is midway through pricing resets and thus far has had 90-95% client retention.

Jefferies has set its price target at $83. The consensus target is lower at $78, and shares closed Monday at $67.83.

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Four stocks that look like far better choices for 2018 than high-flying momentum companies. All make sense for investors looking to rotate to companies that are more of a value proposition but still offer solid alpha potential.

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