Editor's note: As part of our partnership with Nightly Business Report, TheStreet's Gregg Greenberg will appear on NBR Monday (watch video and read transcript here) to highlight contrarian stock plays that asset managers are making now.
NEW YORK (TheStreet) -- Aflac (AFL) shareholders haven't had much to quack about the past year with the stock severely underperforming the S&P 500, but Bill Smead, portfolio manager for the Smead Value Investor Fund (SMVLX), expects that to change.
"They cleaned up their trouble with their European bond ownership and now they've got $100 billion dollars to invest, and furthermore the stock trades cheaply at just over 6 times next year's earnings," says Smead, who also won't rule out the possibility of Aflac being acquired at some point in the near future.
The $55.8 million fund, which garners 4 stars from Morningstar, is up 15% over the past 12 months putting it in the top 3% of large blend funds tracked by Morningstar. Over the past three years, the fund has returned an average of 26% annually, outpacing 88% of its Morningstar rivals.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV