Stocks That Ken Fisher, David Dreman Agree On
At Stockpickr, we keep track of the stock picks of two influential Forbes columnists: Ken Fisher, the longtime bull, and David Dreman, the "contrarian."
Ken Fisher is head of Fisher Asset Management, a $30 billion money management firm. He is also a pioneer in the use of the price-to-sales ratio. He has been bullish on the stock market for several years.
Dreman is founder and chairman of Dreman Value Management, which uses a contrarian value-investing approach to money management, generating an average annual return of 17% with its Large-Cap Value Fund since inception.
Stockpickr has compared and contrasted the portfolios of both investor-columnists and come up with a list of the stocks that Fisher and Dreman agree upon as well as other individual recommendations that offer price/earnings-to-growth (PEG) ratios below 1.5. These stocks are compiled in the
portfolio.
Anadarko Petroleum
(APC) - Get Report
is one of the stocks that both Fisher and Dreman agree upon. This Houston-based oil and gas company reported third-quarter earnings Monday night that showed a drop in profit and revenue. The company just won a major case against the Department of the Interior, relating to Kerr-McGee, which Anadarko took over last year. The stock has a
price-to-earnings (P/E) ratio of 6.4, a PEG of 3.9 and a yield of 0.6%.
Fisher and Dreman aren't the only ones who like this stock; it is also owned by famous trader and former corporate raider
, one of the top 20 wealthiest men in the U.S. Icahn also owns
Alcoa
(AA) - Get Report
, with a PEG of 1.3,
Alcan
(AL) - Get Report
, with a PEG of 1.1, and
Clear Channel Communications
(CCU) - Get Report
, which has a PEG of 2.5.
Another favorite of the two columnists is major integrated oil and gas company
ConocoPhillips
(COP) - Get Report
. It just reported a 5.2% drop in earnings in its last quarter on a 4.3% drop in revenue. ConocoPhillips offers a P/E ratio of 13, a PEG of 0.8 and a yield of 1.9%.
ConocoPhillips is also owned by
, the third richest man in the world. Many investors took notice last month when he liquidated his position in
PetroChina
(PTR) - Get Report
. Some of the stocks he owns include
American Express
(AXP) - Get Report
, with a PEG of 1.4,
Moody's
(MCO) - Get Report
, with a PEG of 1.2, and
Posco
(PKX) - Get Report
, a South Korean steelmaker with a PEG of 1.9.
A third company that the columnists have a shared interest in is yet another oil company,
Occidental Petroleum
(OXY) - Get Report
. The company recently reported a 13.4% increase in quarterly earnings on a 7.1% rise in revenue. The stock has a P/E of 12, a PEG of 1.2 and 1.3% yield.
Occidental was recently added to the portfolio of the
MassMutual Premier Enhanced Index
(DENVX), a five-star Morningstar-rated fund that has generated an average annual return of 13% over the last three years.
The fund also owns
Exxon Mobil
(XOM) - Get Report
, which has a PEG of 1.8,
Bank of America
(BAC) - Get Report
, with a PEG of 1.5, and
JPMorgan Chase
(JPM) - Get Report
, which has a PEG of 1.
For the rest of Fisher's and Dreman's low-PEG stocks, check out the
portfolio at Stockpickr.com.
And for more information on each of their holdings, check out the
and the
portfolios, both at Stockpickr.
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