NEW YORK (TheStreet) -- Cementing a deal with Wal-Mart's(WMT) - Get Report Sam's Club after getting dropped by Costco(COST) - Get Report may not have been an even trade, but it created a lot of value in shares of American Express(AXP) - Get Report, said Tony Scherrer, director of research at Smead Capital Management.
"It's caused the valuation to come down significantly on the stock, and for a high-quality asset like American Express that's widely used by millennials and it's also the number one card of choice that's used by baby boomers and the affluent, we think it makes a lot of sense here," said Scherrer.
Shares of American Express have fallen almost 17% thus far in 2015. The Smead Value fund is up 20 basis points year-to-date, according to fund-tracker Morningstar, which also awards the fund a full five star rating.
Scherrer is also positive on shares of Gilead(GILD) - Get Report, up 18% in 2015, saying the biotech giant will do some buybacks and likely make some acquisitions in the wake of its massive sale of $10 billion in debt.
"They have been very good allocators of capital in the past and we are betting they are going to continue to do that," said Scherrer. "They have been very shareholder friendly along the way."
Scherrer is also a fan of Amgen(AMGN) - Get Report, down 5.1% so far in 2015, calling the biotech giant's pipeline "more robust than what people had been assuming."
Finally, Scherrer is bullish on shares of News Corp(NWSA) - Get Report, which has dropped 17% year to date. He said he is confident new co-Chairman Lachlan Murdoch will build upon the gains of his father and fellow co-Chairman Rupert Murdoch.
"We think News Corp has a lot of very valuable assets inside of it that they seem to have intention to unlock and leverage the value of those assets," said Scherrer.