Dreman Value Management, where legendary investor David Dreman (Trades, Portfolio) acts as chairman, on Monday reported purchasing 32 stocks in the fourth quarter.
Dreman’s portfolio has 449 stocks valued at $177 million, for a quarter-over-quarter turnover of 13%. Dreman founded Dreman Value Management in 1997 and has employed a contrarian strategy, believing that out-of-favor stocks as measured by low price-earnings multiples outperform. The investor has written a number of books, the most recent of which was “Contrarian Investment Strategies: The Psychological Edge.”
In the February issue of Forbes, where Dreman is a columnist, he recommended two undervalued blue-chip stocks: Occidental Petroleum and Wells Fargo.
Financial services forms the largest sector in Dreman’s portfolio, encompassing 34.8% of the portfolio. Technology is the next leading sector at 15.5%.
Of the new buys, these are the largest: Lowe’s Companies Inc. (LOW, Financial), Freeport-McMoRan Inc. (FCX, Financial), Twenty-First Century Fox Inc. (FOX, Financial), United Technologies Corp. (UTX, Financial) and Omnicom Group Inc. (OMC, Financial).
Lowe’s Companies Inc. (LOW, Financial)
Dreman purchased 7,726 shares of Lowe’s Companies, which had an average stock price of $83. The holding represented 0.4% of the portfolio.
Lowe's Companies Inc. has a market cap of $81.03 billion; its shares were traded around $97.65 with a P/E ratio of 23.43 and P/S ratio of 1.21. The trailing 12-month dividend yield of Lowe's Companies Inc. stocks is 1.62%. The forward dividend yield of Lowe's Companies Inc. stocks is 1.69%. Lowe's Companies Inc. had an annual average earnings growth of 8.10% over the past 10 years.
Freeport-McMoRan Inc. (FCX, Financial)
Dreman purchased 31,348 shares of Freeport-McMoRan, which had a fourth-quarter average price of $15. The holding represented 0.33% of the stock portfolio.
Freeport-McMoRan Inc has a market cap of $25.38 billion; its shares were traded around $17.53 with a P/E ratio of 14.15 and P/S ratio of 1.56.
Twenty-First Century Fox Inc. (FOX, Financial)
Dreman purchased 14,723 shares of Twenty-First Century Fox, which had a fourth-quarter average price of $29. The holding represented 0.28% of the portfolio.
Twenty-First Century Fox Inc. has a market cap of $67.46 billion; its shares were traded around $36.10 with a P/E ratio of 17.13 and P/S ratio of 2.33. The trailing 12-month dividend yield of Twenty-First Century Fox Inc. stocks is 1.0%. The forward dividend yield of Twenty-First Century Fox Inc. stocks is 1.02%. Twenty-first Century Fox Inc. had an annual average earnings growth of 10.30% over the past five years.
United Technologies Corp. (UTX, Financial)
Dreman purchased 3,845 shares of United Technologies, which had a fourth-quarter average price of $121. The holding represented 0.28% of the portfolio.
United Technologies Corp. has a market cap of $102.26 billion; its shares were traded around $128.06 with a P/E ratio of 22.46 and P/S ratio of 1.71. The trailing 12-month dividend yield of United Technologies Corp stocks is 2.13%. The forward dividend yield of United Technologies Corp. stocks is 2.24%. United Technologies Corp. had an annual average earnings growth of 4.70% over the past 10 years. GuruFocus rated United Technologies Corp. the business predictability rank of 4-star.
Omnicom Group Inc. (OMC, Financial)
Dreman purchased 6,471 shares of Omnicom Group, which had a fourth-quarter average price of $72. The holding represented 0.27% of the portfolio.
Omnicom Group Inc. has a market cap of $18.07 billion; its shares were traded around $78.37 with a P/E ratio of 15.61 and P/S ratio of 1.22. The trailing 12-month dividend yield of Omnicom Group Inc. stocks is 2.87%. The forward dividend yield of Omnicom Group Inc stocks is 3.12%. Omnicom Group Inc. had an annual average earnings growth of 6.90% over the past 10 years. GuruFocus rated Omnicom Group Inc. the business predictability rank of 4.5-star.
See David Dreman (Trades, Portfolio)’s portfolio here.
