Lampert's Top Stocks: Make Some Eddie Money

Updated from 9:54 a.m. EDT

Edward Lampert is well-known for taking over Sears Holdings(SHLD Quote - Cramer on SHLD - Stock Picks) as chairman of the board. He is also the founder, chairman and CEO of ESL Investments, a hedge fund with $10 billion under management that has reportedly provided an average annual return of 30% since inception. Some investors consider this former Goldman Sachs arbitrager to be another Warren Buffett.

One of the stocks that Lampert owns is the auto parts retailer AutoZone(AZO Quote - Cramer on AZO - Stock Picks); he just raised his ownership to 40% of the company. Recently, AutoZone reported that its earnings increased by 4.6 % on a 3% increase in revenue. The stock has a P/E of about 11 and a PEG of about 1.

AutoZone is also owned by AIM Trimark Endeavor, a Morningstar-rated four-star fund managed by Geoff MacDonald. The fund has had an average annual return of 12.19% over the last three years. AIM also owns Con-Way(CNW Quote - Cramer on CNW - Stock Picks), with a P/E of 17 and a PEG of 1.22; Kinetic Concepts(KCI Quote - Cramer on KCI - Stock Picks), with a P/E of 13 and a PEG of 0.9; and Liz Claiborne(LIZ Quote - Cramer on LIZ - Stock Picks), which has a PEG of 1.2.

Another stock favored by Lampert is Citigroup(C Quote - Cramer on C - Stock Picks), one of the major money center banks whose price suffered with the big drop in the financial sector stocks. Citi announced that its Global Transaction Services division has been appointed by Aberdeen Asset Management to provide fund support services to its 26 mutual fund portfolios. The stock has a forward P/E of 8 and a PEG of 6.95, and it pays a yield of 6.1%.

Citigroup is also owned by Pzena Investment Management, a classic value investment management company with $18 billion under management. The company has an objective of investing in deeply undervalued stocks. It also holds Capital One Financial (COF Quote - Cramer on COF - Stock Picks), with a P/E of 13 and a PEG of 0.76; Alcatel-Lucent(ALU Quote - Cramer on ALU - Stock Picks), with a forward P/E of 13 and a PEG of 2.33; and Freddie Mac(FRE Quote - Cramer on FRE - Stock Picks), with a forward P/E of 23.

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