Bill Miller aired his latest picks for value stocks on CNBC, and an article in Chief Investment Officer has the lowdown. Miller, a value investing icon for years, has a long history of being right, though he was punished for his faithfulness to value in the wake of the 2008 financial crisis. Since then, however, he’s founded his own business which has done quite well. Though his flagship fund Miller Opportunity I is down 10% this year, the fund is up 14.9% annually over the last 10 years—ahead of the S&P 500’s 14.2% showing. His list of value stocks includes:

Alibaba Group Holdings. With geopolitical tensions between the U.S. and China on the rise, this pick is a big risk, especially with the recent SEC rule that requires U.S.-listed foreign stocks to adhere to U.S. accounting standards and comply with an audit by the Public Company Accounting Oversight Board. But even with that risk and its recent sluggish sales, Miller believes Alibaba is a solid company whose stock is undervalued. Alibaba makes up 3% of the Miller Opportunity I fund, and Miller says it’s “the cheapest big cap stock in the world.” It’s currently trading at a 5-year low, having fallen 55% over the past 12 months, and Miller insists it will rebound over the course of 2022.

Travel. Since free-falling in 2020, the travel sector had been slowly climbing its way back up—until the war in Ukraine negated that progress. But Miller thinks Delta Air Lines, United Airlines Holdings, and Norwegian Cruise Lines all have positive outlooks. Norwegian makes up 4% of Miller’s fund’s portfolio, and is currently undervalued. “The stock’s around $18, and we think it’s worth $50,” Miller says. He also believes that the Russia-Ukraine war won’t keep travel stocks down for long.

Oil. Investors are wary of how long the energy boom will last, so even with the price per barrel over $100, energy stocks haven’t skyrocketed. Miller says he’s been overweighting oil stocks since a year ago—a move he hasn’t made in 35 years. Energy makes up 4.5% of his fund, and is the sole stock group that’s been positive so far in 2022. The largest energy holding in the fund is Diamondback Energy, which is up 86% over the last 12 months.

Homebuilders. Great opportunities abound in this sector, Miller maintains. Homebuilding is down 17% this year due to the specter of higher rates looming over home sales, and Miller points to Taylor Morrison Home, off 6% in 2022 after being ahead 17% for the last 52 weeks. In addition, the company has a strong buyback program, garnering a 20% return on invested capital.