NEW YORK (TheStreet) -- As the S&P 500 (SPY) continues to make new record highs, investors may be found scratching their head when looking for a good value.

According to Derek Bruton, CEO of Lucia Capital, there are still several good bargains in the stock market. In an interview with TheStreet TV's Gregg Greenberg, his first pick was Dow Chemical (DOW) . 

NXPI Chart
Gilead Sciences GILD and NXP Semiconductor NXPI data by YCharts

Investors should like the company because it's leveraging natural gas production and shale oil production, Bruton reasoned. "It's a cash-rich" company, he added, and it continues to return that cash to shareholders.

Dow recently boosted its dividend by 14%, while also adding $5 billion to its share repurchase plan, bringing the total program to $9.5 billion. The company is also divesting from some of its low-margin businesses, Bruton said. 

Turning to NXP Semiconductors (NXPI) , Bruton says he likes this company because it's one of the most direct plays on Apple's (AAPL) iPhone 6. NXP Semiconductor makes the chips used for Apple Pay, he said, a platform that will "revolutionize the consumer payment industry." 

The company also has products in drivers licenses, passports and the Wi-Fi used in automobiles. NXP Semi is way ahead of its competition, he added.

Finally, Bruton turned to his last pick, Gilead Sciences (GILD) . The company has recently faced controversy over the cost of its hepatitis C treatment, which costs $84,000 in the U.S. 

Gilead is an "innovative biotech company," he said, that has a great pipeline with treatments outside of hep C, including cardiovascular disease and HIV. 

At just 10 times next year's earnings, the stock is "extremely inexpensive" and investors should use the recent selloff as a buying opportunity, he concluded. 

-- Written by Bret Kenwell 

Follow @BretKenwell


TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

You can view the full analysis from the report here: AAPL Ratings Report

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