For years, analysts and portfolio managers have anticipated the return of value stocks as the market has risen, and for years they have continued to underperform growth stocks. However, that has changed in 2022, as almost every metric from valuations to earnings for the growth arena has started to roll over.

Value stocks are typically defined as shares of a company with solid fundamentals that are priced below those of its peers, based on analysis of price-to-earnings ratio, yield and other factors. Each week, Jefferies offers its top value picks. With earnings reports for the second quarter all but over, and the attention turning back to the Federal Reserve and this week’s Jackson Hole meeting, it may make sense to sell stocks that ripped during the summer rally and head to value ideas.

We screened the Jefferies top value ideas looking for stocks that will hold up in case the summer move higher was indeed a bear market rally. We also looked for the top “strong buy” ideas that paid solid and dependable dividends. The following five hit our screen and all look very timely now. While all are rated Buy at Jefferies, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Ameriprise Financial

This company has been steadily growing assets under management and is a smart choice for investors looking to add financials. Ameriprise Financial Inc. (NYSE: AMP) provides various financial products and services to individual and institutional clients in the United States and internationally.

The company’s Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates.

The Asset Management segment offers investment management and advice, and investment products to retail, high net worth and institutional clients through unaffiliated third-party financial institutions and an institutional sales force. This segment’s products also include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance and annuity separate accounts, as well as institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds and property and infrastructure funds.

The Retirement & Protection Solutions segment provides variable annuity products to individual clients, as well as life and disability income insurance products to retail clients.

Ameriprise Financial stock investors receive a 1.76% dividend. Jefferies team has a $350 price target, while the consensus target is $303.11. The stock closed almost 3% lower on Monday at $276.99.

If any company has products that stay in style, it is this one, and it has only 7% foreign sales. Constellation Brands Inc. (NYSE: STZ) is a leading global producer and marketer of beverage alcohol. Its wide-ranging portfolio spans wine, spirits and imported beer.

Constellation Brands is one the world’s largest wine companies overall and is the largest global premium wine company. Key brands include Robert Mondavi, Clos du Bois, Blackstone, Arbor Mist, Black Velvet and SVEDKA vodka. It also owns 100% of the rights to brew, market and sell Modelo’s Mexican beers in the United States.

Constellation Brands made a gigantic $3.8 billion investment in cannabis company Canopy Growth in 2018 to increase its holdings in the company. The record investment reflects a world in which marijuana has become ubiquitous as its counterculture stigma fades and more states legalize use.

Investors receive a 1.24% dividend. The Jefferies price target on Constellation Brands stock is $305. The consensus target is $275.40, and t final trade for Monday was reported at $254.81 a share.

MetLife

Typically, insurance companies are among the most resistant to inflation and recession. MetLife Inc. (NYSE: MET), a financial services company, provides insurance, annuities, employee benefits and asset management services worldwide.

The company offers life, dental, group short-and long-term disability, individual disability, pet, accidental death and dismemberment, vision and accident and health coverage. It also offers prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements.

MetLife provides pension risk transfers, institutional income annuities, structured settlements and capital markets investment products. Its other products and services include life insurance products and funding agreements for funding postretirement benefits, as well as company, bank or trust-owned life insurance used to finance nonqualified benefit programs for executives.

In addition, the company provides fixed, indexed-linked and variable annuities; pension products; regular savings products; whole and term life, endowments, universal and variable life and group life products; longevity reinsurance solutions; and credit insurance products.

MetLife stock comes with a 2.91% dividend. Jefferies has set its target price at $74, less than the $76.80 consensus target. Monday’s closing share price was $65.91.

This company is a niche finance company that always has demand. SLM Corp. (NASDAQ: SLM), better known as Sallie Mae, originates and services private education loans to students and their families to finance the cost of their education in the United States.

It also offers retail deposit accounts, including certificates of deposit, money market deposit accounts and high-yield savings accounts, as well as omnibus accounts and credit card loans. It serves students and families through financial aid, federal loans and student and family resources.

The company posted strong second-quarter results that topped both earnings and revenue estimates. Private education loan originations increased 16% year over year, and SLM also completed $2.1 billion in private education loan sales during the quarter that resulted in a $240 million gain.

Shareholders receive a 2.31% dividend. The Jefferies target price is $24. The consensus target is $20.21, and SLM stock closed at $14.96 on Monday.

TJX

The Jefferies team loves this off-price bargain retailer. TJX Companies Inc. (NYSE: TJX) operates as an off-price apparel and home fashions retailer. It sells family apparel, including footwear and accessories, and home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop and cookware, as well as expanded pet, kids and gourmet food departments. It also offers fine jewelry and accessories, as well as other merchandise.

As of February 23, 2022, it operated 1,284 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 59 Sierra and 39 HomeSense stores (as well as websites) in the United States. It also operated 293 Winners, 147 HomeSense and 106 Marshalls stores in Canada; 618 T.K. Maxx and 77 Homesense stores in Europe; and 68 T.K. Maxx stores in Australia.

Investors receive a 1.67% dividend. The $90 Jefferies price target is well above the $76.48 consensus target for TJX Companies stock, as well as Monday’s close at $64.39.

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While none of these stocks are likely to turn up on Reddit’s WallStreetBets stock bulletin boards, they are well suited for what could be a very ugly rest of the year. These companies should hold their ground much better in an inflationary and recessionary stretch like the one we are in now and likely will remain in for some time to come.

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