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Richard Pzena Reports Top Five Stocks of the First Quarter

Monica Wolfe

As of the first quarter Richard Pzena, the founder and co-chief investment officer at Pzena Investment Management, held 146 stocks (20 of which he bought during the quarter) valued at over $17.447 billion.

The following five stocks are the companies he holds the largest stake in.

Hewlett-Packard (HPQ)

Richard Pzena’s largest holding is in Hewlett-Packard where the guru maintains 27,025,248 shares of the company’s stock. His position in the company represents 5% of his total portfolio and 1.40% of the company’s shares outstanding.

During the first quarter Pzena made a reduction of his holdings in HP. The guru cut his holdings -11.71% by selling a total of 3,586,080 shares. He sold these shares in the first quarter price range of $27.45 to $32.56, with an estimated average quarterly price of $29.61. Since then the price per share has gone up about 11%.

Richard Pzena’s historical holding history:

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Hewlett-Packard is a global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses and large enterprises, including customers in the government, health and education sectors.

Hewlett-Packard’s historical revenue and net income:

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The analysis on HP reports that the company’s revenue has been in decline over the past year, its dividend yield is near a 1-year low and its price is near a 1-year high. Also the analysis reports that HP has issued $5.1 billion of debt over the past three year.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Hewlett-Packard has a market cap of $62.2 billion. Its shares are currently trading at around $32.82 per share with a P/E ratio of 12.00, a P/S ratio of 0.60 and a P/B ratio of 2.20. The dividend yield of HPQ stocks is at 1.80%.

Oracle Corporation (ORCL)

Pzena’s second largest holding goes to Oracle Corporation where, as of the first quarter, he held on to 14,734,795 shares of the company’s stock. His holdings make up for 3.5% of his total portfolio and 0.32% of the company’s shares outstanding.

During the first quarter Pzena made a reduction in his position of -13.82% by selling a total of 2,362,956 shares. He sold these shares in the first quarter price range of $35.84 to $38.26, with an estimated average quarterly price of $38.06. Since then the price per share has increased approximately 10.2%.

Pzena’s historical holding history:

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Oracle provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management. It provides cloud services as well as software and hardware products to other cloud service providers, both public and private.

Oracle’s historical revenue and net income:

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The analysis on Oracle reports that the company’s revenue has slowed down over the past year, its price is near a 10-year high, its operating margin is expanding and its dividend yield is also near a 5-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Oracle Corporation has a market cap of $187.05 billion. Its shares are currently trading at around $41.95 with a P/E ratio of 17.60, a P/S ratio of 5.10 and a P/B ratio of 3.80. The company had an annual average earnings growth of 19.40% over the past ten years.

GuruFocus rated Oracle the business predictability rank of 4.5-star.

Baker Hughes (BHI)

The guru’s third largest holding is in Baker Hughes where he holds on to 8,907,656 shares of the company’s stock. His holdings make up for 3.3% of his total portfolio and 2.01% of the company’s shares outstanding.

Over the first quarter Pzena reduced his position -8.16% by selling a total of 791,895 shares of the company’s stock. He bought these shares in the price range of $51.82 to $65.27, with an estimated average quarterly price of $59.16. Since then the price per share has jumped up about 18.2%.

The guru’s historical holding history:

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Baker Hughes is a supplier of oilfield services, products, technology and systems to the oil and natural gas industry. It also provides industrial and other products and services to the downstream refining, and the process and pipeline industries.

Baker Hughes’ historical revenue and net income:

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The analysis on Baker Hughes reports that the company’s revenue has slowed down over the past year, its price is sitting near a 2-year high, it has issued $612 million over the past three years and its dividend yield is nearing a 2-year low.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Bakers Hughes has a market cap of $30.56 billion. Its shares are currently trading at around $70.10 with a P/E ratio of 26.90, a P/S ratio of 1.40 and a P/B ratio of 1.20. The company had an annual average earnings growth of 4.60% over the past ten years.

GuruFocus rated Baker Hughes the business predictability rank of 2-star.

BP PLC (BP)

Pzena’s fourth largest position is in BP. The guru maintains 10,891,504 shares, representing 3% of his total portfolio and 0.35% of the company’s shares outstanding.

Over the first quarter Pzena increased his position by a minor 0.23%. The guru sold a total of 24,825 shares near the estimated average quarterly price of $48.21. Since then the price per share has increased approximately 5.2%.

Richard Pzena’s holding history as of the first quarter:

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BP PLC operates as an integrated oil and gas company and is the parent company of the BP group of companies. The Company has three reportable segments: Upstream, Downstream and TNK-BP.

BP’s historical revenue and net income:

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The analysis on BP reports that the company’s revenue per share has been in decline over the past year, its price is trading at near a 3-year high and the company has issued $10.4 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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American International Group (AIG)

Pzena’s fifth largest position is in American International Group, or AIG. The guru maintains 10,030,795 shares, representing 2.9% of his total portfolio and 0.68% of the company’s shares outstanding.

Over the first quarter Pzena reduced his position by a minor -2.64%. The guru sold a total of 272,142 shares in the price range of $46.88 to $52.22, with an estimated average quarterly price of $49.73. Since then the price per share has increased approximately 7.3%.

Richard Pzena’s holding history as of the first quarter:

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American International Group is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad.

AIG’s historical revenue and net income:

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The analysis on AIG reports that the company’s dividend yield is near a 10-year low, its revenue has been in decline over the past five years and its P/S ratio is nearing a 5-year high.

The Peter Lynch Chart suggests that the company is currently undervalued:

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American International Group has a market cap of $77.22 billion. Its shares are currently trading at around $53.38 with a P/E ratio of 8.60, a P/S ratio of 1.10 and a P/B ratio of 0.80.

Check out Richard Pzena’s top first quarter holdings here.

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