There’s a reason that Prudential Financial shares are so inexpensive—low interest rates have prevented the insurance company and its peers from getting much of a return on investing the money they collect in premiums (their “float”). But Prudential’s stock is even trading at a big discount compared to where it has typically traded historically (a P/E of about 11), says AFAM’s Buckingham. And even if the company’s earnings per share decline somewhat this year, as Wall Street expects, Prudential is still incredibly profitable, having nearly quadrupled its EPS to almost $10 last year. The company is also returning some of that capital to shareholders: It has increased its dividend more than 20% annually on average for the last three years. If and when interest rates do rise, as Buckingham expects they will eventually, Prudential is sure to benefit. In the meantime, it’s his favorite pick in the financial sector because, besides its “super inexpensive valuation and the generous dividend yield,” Prudential’s business has a reputation for quality around the globe: “It’s best of the breed,” he says.