Price owned almost 350,000 shares of oil major ConocoPhillips (NYSE:COP). Warren Buffett also likes the company, with his holding company Berkshire Hathaway disclosing ownership of over 24 million shares at the end of the fourth quarter of 2012 (find Buffett’s favorite stocks). Analyst estimates for 2014 imply a forward P/E of 10, which is roughly even with where other oil majors are trading. Of course, ConocoPhillips has significant commodity pricing risk due to its oil and gas activities. We would also note that the stock has paid a substantial dividend yield recently.
Becton, Dickinson and Co. (NYSE:BDX), a provider of medical devices and instruments with a market capitalization of $17 billion, was another of Price’s top picks and it too is cheap in quantitative terms with a forward earnings multiple of 14. The company experienced a large percentage increase in earnings in its most recent quarter compared to the same period in the previous year (helping give it an abnormally high trailing earnings figure) but revenue growth was much lower. Billionaire Ken Griffin’s Citadel Investment Group was buying shares of Becton Dickinson last quarter (research more stocks Griffin was buying).
Price kept his holdings of Kaiser Aluminum Corp. (NASDAQ:KALU) constant at a little over 300,000 shares. At a market capitalization of $1.2 billion, Kaiser trades at 14 times its trailing earnings following a 30% increase in the stock price in the last year. In the fourth quarter of 2012, net income was up considerably from its levels a year ago but revenue was actually down slightly; as a result we’d want to sort out its current condition before deciding whether or not it actually is a value stock. Carlson Capital, managed by Clint Carlson, owned about 440,000 shares of Kaiser Aluminum at the beginning of January (check out more stocks Carlson owned).
Disclosure: I own no shares of any stocks mentioned in this article.