These stocks trading at discounts to their valuations may be worth buying, traders say

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Two traders sift through a group of stocks 'on sale' to find bargain buys in the market.

With AT&T, "the idea is you're getting over a 7% dividend yield for a company that generated a tremendous amount of cash flow and is paying down debts following the Time Warner transaction a couple years ago," Petrides said in the same "Trading Nation" interview.

Although Time Warner's delayed movie slate is an issue for AT&T, the telecommunications giant has another "cash cow," Petrides said: the 5G rollout.being released, that should add some movement upward to the mobile side of the coin for AT&T, which I think is positive for the story," he said.

Petrides also saw several catalysts driving Lennar's business, most notably consumers' flight to the suburbs from more urban areas amid the"Lennar is one of the quality lower-cost producers in the housing market," he said. "Just as it's been a benefit for AT&T in terms of looking for yield, low interest rates have been a benefit for homebuyers.

Disclosure: Petrides and certain Tocqueville clients own shares of AT&T. Tocqueville also owns shares of Lennar.

 

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TradingNation $MYL $LEN $TAP $INTC and $T $TSN are on my radar.

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