Richard Pzena

Richard Pzena

Last Update: 02-10-2017

Number of Stocks: 158
Number of New Stocks: 12

Total Value: $17,538 Mil
Q/Q Turnover: 5%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Richard Pzena Watch

  • 6 Low P/E Stocks

    Here are six stocks gurus are buying that are trading with low price-earnings (P/E) ratios. Some of them are great investments; others need a double check, according to the DCF calculator.


    Fifth Third Bancorp (FITB) with a market cap of $20.08 billion is trading with a P/E ratio of 13.80 and a price-sales (P/S) ratio of 3.25. According to the DCF calculator, the stock has a fair value of $20.76 while trading around $26.76; it is overpriced by 29%. The price has risen by 5% during the last 12 months and is now 4.02% below its 52-week high and 93.35% above its 52-week low.

      


  • Low P/E Stocks Gurus Are Buying

    Here are six stocks gurus are buying that are trading with low price-earnings (P/E) ratios. Some of them are great investments; others need a double check, according to the DCF calculator.


    GameStop Corp. Class A (GME) with a market cap of $2.49 billion is trading with a P/E ratio of 6.57 and a price-sales (P/S) ratio of 0.28. According to the DCF calculator the stock has a fair value of $39.81 while trading at about $24.49. The price has dropped by 9% during the last 12 months and is now 27.37% below its 52-week high and 21.84% above its 52-week low.

      


  • Abbott Launches Neuropathic Pain Treatment System

    Abbott Laboratories (NYSE:ABT) announced through PR Newswire Jan. 18 that it has put on the market its Proclaim DRG Neurostimulation System, which has been created to stimulate the spinal ganglion in patients chronically affected by neuropathic pain.


    The dorsal root ganglion is where the cell bodies of the first neuron of the sensory pathways are, from which a fiber originates. This fiber splits into two branches, one heading to the peripheral system and the other to the spinal cord. The ganglion is an important objective in neurostimulation.

      


  • Abbott Closes St. Jude Medical Deal Wednesday

    Abbott Labs (NYSE:ABT) communicated through the PRNewswire on Dec. 30 that the closure of the purchase of St. Jude Medical (NYSE:STJ) for $25 billion is expected on Wednesday.


    Due to antitrust rules the Federal Trade Commission and the Chinese Commerce Ministry required Abbott to sell off two cardiovascular devices, St. Jude Medical's Angio-Seal and Femoseal, vascular closure products and Abbott's Vado Steerable Sheath, a heart catheter.

      


  • Abbott Labs to Buy St. Jude Medical for $25 Billion

    Abbott Labs (NYSE:ABT) agreed Dec. 27 to the conditions imposed by the U.S. Federal Trade Commission for the closing of the deal that will see Abbott purchase St. Jude Medical (NYSE:STJ) for a total consideration of $25 billion.


    After Abbott Labs’ agreement on the FTC’s conditions, there aren’t any other obstacles to Abbott's plan to purchase St. Jude Medical. Thus, the white smoke is expected anytime soon.

      


  • The Danger on Which Gurus Agree

    Intrinsically ETFs are a tremendous innovation and a great positive. Unfortunately at this stage if you want to raise a lot of money as an asset manager you need to play into fear and greed. Customers want more, and they don’t want to lose. Ever.


    ETFs get investors more. They are much cheaper to run compared to an actively managed fund. With active managers, in the aggregate, failing to deliver returns in excess of their expenses ETFs win out. So far, so good.

      


  • Abbott Laboratories Announces Quarterly Dividend

    The board of Abbott Laboratories (NYSE:ABT) declared through PR Newswire Friday a dividend increase for the last quarter of the year.


    The U.S.-based global health care company headquartered in Lake Bluff, Illinois, will pay 26.5 cents per ordinary share to shareholders of record as of Jan. 13, 2017. The dividend, which represents a 1.9% increase from the prior dividend of 26 cents, will be paid by the company to the shareholders on Feb. 15, 2017.

      


  • 4 Gurus Invest in Hilton Worldwide

    Gurus Steve Mandel (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) all purchased positions in Hilton Worldwide Holdings (NYSE:HLT) during the third quarter.


    Mandel purchased the largest stake of 19,597,829 shares followed by Pzena with 9,804,419 shares. Cohen invested in 838,300 shares, and Greenblatt purchased 28,234 shares.

      


  • Richard Pzena Sells Microsoft, ExxonMobil, HP

    Richard Pzena (Trades, Portfolio) is the founder and co-chief investment officer of Pzena Investment Management. During the third quarter, the guru’s most important sells were the following:


    He reduced his stake in PNC Financial Services Group Inc. (PNC) by 77.12%, with an impact of -0.84% on the portfolio.

      


  • Gurus' 6 Worst-Performing Stocks

    While gurus are still holding stakes of these companies, the stock price and investors' returns are dropping. These are the worst-performing stocks over the last six months that have a long-term presence in more than four gurus’ portfolio.


    Key Energy Services Inc. (KEGXQ) reports a negative performance over the last six months with a price drop of -14.4%. Despite this, four mutual funds are holding the company with a total weight of 0.01% on their portfolios.

      


  • Don’t Buy the Business That Is; Buy the Business That Will Be

    I’m going to assume here that you are a value “investor,” not a value “trader.” You are investing over the kind of timespan that Warren Buffett (Trades, Portfolio) invests over (buy and hold forever) or maybe just the kind of timespan Ben Graham invested over (buy and hold for a few years).


    If you look at the Graham-Newman letters to partners – they are really mostly just a list of positions – you’ll see the turnover rate is quite low. It may be 20% one year. It might be 40%. But it’s never 50%, 75%, 110% – like many mutual funds and many brokerage accounts are today.

      


  • Richard Pzena Buys Capital One, Hilton, Wesco

    Richard Pzena (Trades, Portfolio) of Pzena Investment Management acquired 12 new holdings in the third quarter. His top three new holdings are Capital One Financial Corp. (NYSE:COF), Hilton Worldwide Holdings Inc. (NYSE:HLT) and Wesco Aircraft Holdings Inc. (NYSE:WAIR).


    Pzena founded his firm in 1995 in New York City. Pzena seeks classic value through buying good companies at low prices. The firm focuses on companies that are underperforming their historically demonstrated earnings power.

      


  • ExxonMobil Reports 3rd Quarter Earnings

    ExxonMobil Corp. (NYSE:XOM) released its third-quarter report Friday morning, reporting declines in earnings.


    The Irving, Texas-based oil and gas company announced third quarter earnings of $2.7 billion, or 63 cents per diluted share. This compares to $4.2 billion a year ago and reflects lower refining margins and commodity prices.

      


  • The Market Is Split, Make Sure You Are on the Right Side

    Richard Pzena (Trades, Portfolio), a brilliant value investor tracked on GuruFocus, recently appeared on CNBC. He talked about a few different subjects and the channel cut the clips up. There are four of them in total. Interestingly, they cut up the tape to where Pzena discusses active versus passive investing in one clip, and in the other he discusses a market divide. They are both at the end of this article. I’m writing this article because what Pzena says in one clip ties into what he is talking about in the other clip. You need to piece things together to understand what environment value investing is in right now.


    In the first clip, Pzena talks about how it makes no sense that active investing will continue to underperform passive investing. He says there is a very strong correlation between the value cycle and performance of active investing. When value works, active investing works.

      


  • Gurus Exit Inefficient Packaged Foods Industry

    Throughout the second quarter, gurus trimmed or eliminated their positions in packaged foods companies. Such companies, like Kellogg Co. (NYSE:K) and Leucadia Corp. (NYSE:LUK), have increasing days sales outstanding and contracting profit margins. This leads to decreased value opportunities in the packaged foods industry.


    Which industries inefficiently operate receivables, payables and inventory?

      


  • Richard Pzena Boosted Stake in Seagate in 2nd Quarter

    Richard Pzena (Trades, Portfolio), in his 10 largest trades of the second quarter, added to a few stakes but reduced more with technology and energy stocks among his leading transactions.


    The founder and co-chief investment officer of Pzena Investment Management made his largest transaction of the quarter in Seagate Technology PLC (NASDAQ:STX), a California-based computer storage company. The guru boosted the stake by more than 58% with the purchase of 5,696,037 shares for an average price of $24.4 per share. The deal had a 0.87% impact on the portfolio.

      


  • Bill Nygren Gains 1, Loses 1 in 2nd Quarter

    Bill Nygren (Trades, Portfolio) of Oakmark Funds acquired LinkedIn Corp. (NYSE:LNKD) and sold out of Franklin Resources Inc. (NYSE:BEN) in the second quarter.


    Nygren is the portfolio manager for the Oakmark Fund, the Oakmark Select Fund and the Oakmark Global Select Fund. Nygren and his partners are value investors. They invest in companies they believe trade at a substantial discount to the true business value. When evaluating potential investments, they focus on a company’s stock price and whether it is at a discount to its value, free cash flow and the investment of excess cash. They also look for a high level of management ownership.

      


  • Hotchkis & Wiley's Best Investments Year to Date

    HOTCHKIS & WILEY are value investors focusing on important investment parameters such as a company's tangible assets, sustainable cash flow and potential for improving business performance. It manages a portfolio composed of 173 stocks with total value of $23.763 billion.


    Marathon Oil Corp. (MRO)

      


  • Hotchkis & Wiley Buys Morgan Stanley, Citigroup, AIG in 1st Quarter

    HOTCHKIS & WILEY was founded in 1980 by John Hotchkis and George Wiley, value investors focusing on important investment parameters such as a company's tangible assets, sustainable cash flow and potential for improving business performance. During the first quarter the firm bought shares in the following stocks:


    The firm increased its stake in Marathon Oil Corp. (MRO) by 44.55% with an impact of 0.8% on the portfolio.

      


  • Stocks Richard Pzena Has Bought for 2 Quarters

    Richard Pzena (Trades, Portfolio) is founder and co-chief investment officer of Pzena Investment Management LLC, with more than $24 billion under management. In both fourth quarter 2015 and first quarter 2016 the guru bought shares in the following stocks:


    Key Energy Services Inc. (KEG)

      


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