Hewlett-Packard Company (HPQ): Pzena Still Believes in Turnarounds

BP plc (ADR) (NYSE:BP) is a Pzena’s fifth-largest holding and makes up 2.9% of Pzena’s 13F portfolio. This oil super-major still has overhang from the Deepwater Horizon incident, with its stock down some 40% over the past five years, compared to the S&P 500 that’s up 20% over the same time period.

BP plc (ADR) (NYSE:BP) has reinstated its dividend since the Gulf of Mexico incident. The stock now offers investors an impressive 4.8% dividend yield. BP trades at the cheapest of all six super-majors at 6.2 times earnings.

BP plc (ADR) (NYSE:BP) had a debt ratio of only 18.7% and $20 billion in cash at the end of 2012, which should help the company remain financially stable even after the Deepwater payout. Notable value investor and billionaire Seth Klarman has serious conviction in BP plc (ADR) (NYSE:BP), with more than 20% of his hedge fund invested in the stock (check out why Klarman loves BP).

Pzena is heavily invested in the Hewlett-Packard Company (NYSE:HPQ) turnaround, however, I’d be cautious on following him into the tech stock just yet. There still appears to be unanswered questions on how HP will transition away from its PC/printer business. I also think the long-term growth opportunities in Staples, Inc. (NASDAQ:SPLS) are limited, while TE and Omnicom Group Inc. (NYSE:OMC) are both solid under-the-radar stock picks. Meanwhile, I also like BP plc (ADR) (NYSE:BP) as a solid value play with an impressive dividend yield.