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Holly LaFon
Holly LaFon
Articles (8704)  | Author's Website |

Dreman Value Management's Top 5 New Buys

Legendary investor David Dreman reports portfolio

February 12, 2018 | About:

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. (NYSE:LOW), Freeport-McMoRan Inc. (NYSE:FCX), Twenty-First Century Fox Inc. (NASDAQ:FOX), United Technologies Corp. (NYSE:UTX) and Omnicom Group Inc. (NYSE:OMC).

Lowe’s Companies Inc. (NYSE:LOW)

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.

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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. (NYSE:FCX)

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.

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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. (NASDAQ:FOX)

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.

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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. (NYSE:UTX)

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.

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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. (NYSE:OMC)

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.

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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.

About the author:

Holly LaFon
I'm a financial journalist with a master of science in journalism from Medill at Northwestern University.

Visit Holly LaFon's Website


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