This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pfizer, Dell Top the List

Stocks in this article: PFE DELL VLO

Drug giant Pfizer (PFE) is busy selling its nutrition division and spinning off its animal health business. And with all that going on, the stock still remains cheap, says Mark Finn portfolio manager for the T. Rowe Price Value Fund ( TRVLX ).

"Similar companies trade at much higher multiples than Pfizer, so we expect an unlocking of value through these two transactions and while we wait, we have a stock that trades at 9 times forward earnings and has a 4% dividend yield," says Finn.

The $12.6 billion fund, which garners 3 stars from Morningstar, is up 4% over the past 12 months. Over the past three years, the fund has returned an average of 27.4% annually, outpacing 90% of its Morningstar rivals.

Finn is also a fan of tech-giant Dell (DELL), which he says trades cheaply despite the large amount of cash the company generates.

"We expect that the server business will get back on its feet as the Taiwan flood disruptions are addressed and the parts become more available. So we expect a long runway for Dell and we expect the stock price to reach the mid-to-high twenties," says Finn, who also likes chemical maker LyondellBasell (LYB), which he says will benefit from low natural gas prices.

"Lyondell has a tremendous cost advantage. We believe this means the long term earnings potential for Lyondell is more like $7 to $8. The stock is currently trading around $40 which should allow for some multiple expansion over time," says Finn.

Finally, Finn is positive on the oil refiners, despite the industry being shunned by investors in recent years. According to Finn, the drop in U.S. oil production has caused large oil companies such as Sunoco to close down their refinery businesses. But now that oil production is increasing Finn says refiners like Valero (VLO) stand to benefit.

"Valero will benefit both from the spike in oil supply as well as its ability to ship the finished refined product out through the Gulf of Mexico," says Finn.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,856.24 +78.09 0.44%
S&P 500 2,073.80 +12.57 0.61%
NASDAQ 4,772.9150 +24.5190 0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs