In a market that has fought its way back from a brutal 10% correction, investors are once again confronted with the reality that the market is expensive. While almost everybody on Wall Street sees high multiples being tempered by rising earnings from the tax reform package, it is still a classic stock-pickers market.

One of the best ideas when confronted with the current set of market metrics is to look for stocks that have upward earnings revisions and appear to have the potential to raise dividends, a sign of solid free cash flow.

In a new report from Jefferies, their chief global strategist Sean Darby is sticking with stocks that have those characteristics, and the report highlights five that are all rated Buy at Jefferies.

AbbVie

This is one of the top pharmaceutical stocks picks across Wall Street. AbbVie Inc. (NYSE: ABBV) is a global, research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories. The company develops and markets drugs in areas such as immunology, virology, renal disease, dyslipidemia and neuroscience.

One of the biggest concerns with AbbVie is what might eventually happen with anti-inflammatory therapy Humira, which has some of the largest sales for a drug ever recorded. Last year the patent board instituted Coherus’s Inter Partes Review against the Humira ‘135 patent. The problem with Humira is that biosimilars and generics are itching to enter the market.

The company reported strong fourth-quarter results that beat consensus sales and non-GAAP earnings per share estimates, mainly driven by strong Mavyret sales. Tax rate guidance of 9% for 2018 estimated to 13% in 2023 came in well above expectations.

Shareholders in AbbVie are paid a solid 3.16% dividend. The Jefferies price target for the shares is $130, and the Wall Street consensus target price is $125.60. The stock closed on Tuesday at $118.26 per share.

Amgen

This biotech giant remains a top stock for investors to buy and a safe way to play the massive potential growth in biosimilars. Amgen Inc. (NASDAQ: AMGN) has been a biotechnology pioneer since 1980 and has grown to be one of the world’s leading independent biotech companies. It has reached millions of patients around the world and is developing a pipeline of medicines with breakaway potential.

Amgen develops, manufactures and markets biologic therapies for oncology and inflammation. The company’s five key marketed products are among the top-selling pharmaceutical products in the world, with expected collective revenues of more than $22 billion in 2018.

Amgen also has billions in overseas cash, and it could see some big tax relief with a lower rate for repatriation of those funds back to the United States.

Amgen shareholders are paid a 2.84% dividend. Jefferies has a $200 price target for the stock. That compares with the posted consensus target of $194.64, as well as Monday’s closing share price of $185.79.

Cabot

This company has an extensive global footprint, and it offers a solid entry point for investors. Cabot Corp. (NYSE: CBT) is a global specialty chemicals and performance materials company. It operates through four business segments focused on reinforcement materials, performance chemicals, purification solutions and specialty fluids.

The company recently announced an expanded range of premium carbon black products for racing and ultra-high-performance tires with the launch of the new PROPEL X carbon black series. The popularity of sports cars and luxury vehicles has led to a steady increase in the demand for high-performance tires. Ultra-high-performance tires are designed with a focus on traction and precise handling characteristics that enable vehicles to safely reach ever-increasing performance requirements.

Cabot investors are paid a 2.01% dividend. The $78 Jefferies price objective compares with the consensus target price that was last seen at $74.33. The stock closed Tuesday’s trading at $62.74 per share.

First Horizon National

This smaller cap bank stock is well positioned for higher short rates. First Horizon National Corp. (NYSE: FHN) is a bank holding company headquartered in Memphis, Tennessee, with assets of over $40 billion and operations in Tennessee, Georgia and Mississippi. The company’s primary lending products are residential real estate, commercial and industrial, and commercial real estate. The company derives more than 50% of total revenues from fee-based businesses.

The company reported fourth-quarter results that came in above consensus expectations, and it is in the process of integrating the purchase of Capital Bank Financial, a deal that closed near the end of 2017 for $2.2 billion.

Investors receive a solid 2.48% dividend. Jefferies has set its price target at $24. The posted consensus target is $22.66, and the shares closed at $19.33 on Tuesday.

Walmart

The giant retailer is on sale after being pummeled recently. Walmart Inc. (NYSE: WMT) is the world’s largest retailer, operating retail stores under the formats of Walmart Stores, Supercenters, Neighborhood Markets, as well as Sam’s Club locations, in the United States, and it has a growing e-commerce business (including Jet.com). Internationally, Walmart also operates locations in several countries, including Argentina, Brazil, Canada, China, Japan, Mexico and the United Kingdom.

Each week, nearly 260 million customers and members visit the company’s 11,535 stores under 72 banners in 28 countries and e-commerce sites in 11 countries. With fiscal year 2017 revenue of nearly $486 billion, Walmart employs approximately 2.2 million associates worldwide.

The stock was absolutely crushed after reporting earnings in which e-commerce sales came in below expectations. The stock suffered its worst trading day ever, and many top Wall Street analysts have said to jump on shares after the decline.

Walmart shareholders are paid a 2.27% dividend. The Jefferies price target is $110. The consensus target is $104.49, and the shares closed on Tuesday at $91.52 apiece.

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These five stocks come with upward earnings revisions and the potential for rising dividends. They all make good sense for investors looking for stocks ideas as we get closer to the second quarter.

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