Bill Nygren is looking to stocks with 'unsustainably low' price-earnings ratios. Here are his picks

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He's looking at stocks that will perform better as market pressures recede.

The volatile market is pushing some cyclical stocks' price-earnings ratios to levels that Bill Nygren, portfolio manager at Oakmark Funds, sees as "unsustainably low." Those are the stocks he wants to buy. "When the markets are really volatile like they have been, that tends to lead to an increase in the distribution of P/E ratios," he said on CNBC's "Squawk on the Street." "And as that widens, I think that creates more opportunity for stock pickers.

While he said the library was "not particularly well-managed" under AT & T, he sees an opportunity for the company to be a streaming leader going forward. "Warner has done a great job of making must-see content," Nygren said. "And we believe that one way or another, the company is going to be successful at monetizing that.

 

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