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 Dueling Columnists portfolio.

Anadarko Petroleum ( APC) 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 Carl Icahn, one of the top 20 wealthiest men in the U.S. Icahn also owns Alcoa ( AA), with a PEG of 1.3, Alcan ( AL), with a PEG of 1.1, and Clear Channel Communications ( CCU), which has a PEG of 2.5.

Another favorite of the two columnists is major integrated oil and gas company ConocoPhillips ( COP). 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 Warren Buffett, the third richest man in the world. Many investors took notice last month when he liquidated his position in PetroChina ( PTR). Some of the stocks he owns include American Express ( AXP), with a PEG of 1.4, Moody's ( MCO), with a PEG of 1.2, and Posco ( PKX), 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). 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), which has a PEG of 1.8, Bank of America ( BAC), with a PEG of 1.5, and JPMorgan Chase ( JPM), which has a PEG of 1.

For the rest of Fisher's and Dreman's low-PEG stocks, check out the Dueling Columnists portfolio at Stockpickr.com.

And for more information on each of their holdings, check out the Ken Fisher and the David Dreman portfolios, both at Stockpickr.

Stockpickr is a wholly owned subsidiary of TheStreet.com.

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