Chesapeake Energy Corporation (CHK), Dell Inc. (DELL), Loews Corporation (L): Southeastern’s Top Five Stock Picks

Global play

FedEx Corporation (NYSE:FDX) is Southeastern’s fifth-largest stock holding, right behind DirecTV and making up 7.3% of the 13F portfolio. FedEx Corporation (NYSE:FDX) is a bigger bet on the rebounding global economy, which should be boosted by the 2013 expected U.S. GDP growth.

Part of what FedEx Corporation (NYSE:FDX) hopes will separate it from competitors, including top competitor UPS, is its targets of 30% improvement in fuel efficiency of its fleet by 2020. Its other key program is to increase profitability, with a target to add $1.7 billion to operating income by fiscal year 2016.

FedEx is also boosting its international business by enhancing its existing routes and making strategic acquisitions. The company is building a new hub in Guangzhou, China, to serve 100 new Chinese cities within the next five years.

Don’t be fooled

Southeastern is in a battle with Dell Inc. (NASDAQ:DELL), fighting for a higher price, yet, the fund has a number of other big bets. This includes Chesapeake, its top bet. I believe that Chesapeake Energy Corporation (NYSE:CHK) is executing its turnaround nicely, while the turnaround of Dell will be more interesting, but both are buys at current levels.

Meanwhile, I have a positive outlook for Hawkins’ three other picks. Loews Corporation (NYSE:L) is an underappreciated play on insurance (stable cash flow business) and oil/gas (growing on the back of natural gas demand), while DirecTV is taking positive steps to hedge subscriber decline and FedEx is a nice bet on the global economy.

The article Southeastern’s Top Five Stock Picks originally appeared on Fool.com and is written by Marshall Hargrave.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool recommends DirecTV, FedEx, and Loews. The Motley Fool owns shares of Loews and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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