Richard Pzena's 5 New Q4 Stock Buys

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Feb 07, 2015
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Richard Pzena (Trades, Portfolio) of the $27.7 billion Pzena Investment Management purchased five new stocks in the fourth quarter, according to his portfolio update released Friday.

Pzena holds 141 stock positions in total, with a aggregate value of $18.7 billion and turnover from the previous quarter of 8%.

In his fourth quarter letter, Pzena discussed the oil market almost exclusively, saying that he was looking for new positions in the sector: “Given the range of potential outcomes for ht enormal oil price and the likelihood of continued volatility, it is important to focus on finding good businesses at attractive valuations that can withstand financial and operating stress.”

In the fourth quarter, however, he had not yet purchased new positions in oil companies.

In general, Pzena seeks “good businesses when they go on sale.” The five new fourth-quarter stocks he selected were: Baxter International Inc. (BAX, Financial), Ford Motor Co. (F, Financial), Stanley Black & Decker (SWK, Financial), Pfizer Inc. (PFE, Financial), and Cubic Corp (CUB, Financial).

Baxter International Inc. (BAX, Financial)

Pzena purchased 3,944,140 shares of Baxter International Inc., a 1.5% portfolio holding.

Baxter International Inc. is a Delaware corporation incorporated in 1931. Baxter International Inc. has a market cap of $38.46 billion; its shares were traded at around $70.97 with a P/E ratio of 20.80 and P/S ratio of 2.28. The dividend yield of Baxter International Inc. stocks is 2.90%. Baxter International Inc. had an annual average earnings growth of 12.10% over the past 10 years. GuruFocus rated Baxter International Inc. the business predictability rank of 3.5-star.

Ford Motor Co. (F, Financial)

Pzena purchased 15,053,523 shares of Ford Motor Co., a 1.2% portfolio holding. The company’s share price averaged $15 for the fourth quarter.

Ford Motor Co. was incorporated in Delaware in 1919. Ford Motor Co. has a market cap of $61.04 billion; its shares were traded at around $15.86 with a P/E ratio of 10.50 and P/S ratio of 0.44. The dividend yield of Ford Motor Co. stocks is 3.30%.

Stanley Black & Decker Inc. (SWK, Financial)

Pzena purchased 2,209,389 shares of Stanley Black & Decker, a 1.1% portfolio holding. The share price averaged $92 in the fourth quarter.

Stanley Black & Decker Inc. was founded in 1843 and incorporated in Connecticut in 1852. Stanley Black & Decker Inc. has a market cap of $15.09 billion; its shares were traded at around $96.32 with a P/E ratio of 22.90 and P/S ratio of 1.40. The dividend yield of Stanley Black & Decker Inc. stocks is 2.10%. Stanley Black & Decker Inc. had an annual average earnings growth of 1.40% over the past 10 years. GuruFocus rated Stanley Black & Decker Inc. the business predictability rank of 2-star.

Pfizer Inc. (PFE, Financial)

Pzena purchased 2,170,568 shares of Pfizer Inc. in the fourth quarter, a 0.36% portfolio holding. The share price averaged $30 in the fourth quarter.

Pfizer Inc. was incorporated under the laws of the State of Delaware on June 2, 1942. Pfizer Inc. has a market cap of $208.99 billion; its shares were traded at around $33.17 with a P/E ratio of 20.50 and P/S ratio of 4.30. The dividend yield of Pfizer Inc. stocks is 3.20%. Pfizer Inc. had an annual average earnings growth of 3.20% over the past 10 years. GuruFocus rated Pfizer Inc. the business predictability rank of 3-star.

Cubic Corp (CUB, Financial)

Pzena purchased 312,615 shares of Cubic Corp, a 0.088% portfolio position. The share price of the stock averaged $49 in the fourth quarter.

Cubic Corp, a Delaware corporation was incorporated in 1949. Cubic Corp has a market cap of $1.43 billion; its shares were traded at around $53.32 with a P/E ratio of 20.80 and P/S ratio of 1.0. The dividend yield of Cubic Corp stocks is 0.40%. Cubic Corp had an annual average earnings growth of 14.30% over the past 10 years.

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