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Scott Black’s Top 2 Value Stocks

Shares of two companies have not yet participated in the recent rally, making them strong value plays, Delphi's Scott Black said Wednesday.

The first was Western Union.

"You get paid while you wait. You get about a 3 percent yield. The stock is 16 and change," he said. "The earnings will be down a little bit this year, $1.40, so you're paying about 11.9 multiple. But the earnings should turn up next year to about $1.60, $1.65."

On CNBC's "Fast Money," Black said that a change in their pricing strategy would help Western Union continue to dominate the space against such competitors as MoneyGram.

Black noted that Western Union had "well over 100 percent return on equity."

"It's a money machine. They bought back about $2.2 billion worth of their own stock in the last three years," he said. "It's a steady type of business. It's not interest-rate sensitive."

(Read More: 'It's the Bottom' for Stocks: Dennis Gartman)

Western Union closed at $16.87 per share, up 2 percent.

Black said that he saw significant upside.

"Let's say you get $1.60 in earnings next year. There's no reason the stock can't go to $23 or $24, so that would be an all-in return with the dividend somewhere between 40, 45 percent," he said.

Black's other top value stock was American Railcar, 55 percent of which was owned by Carl Icahn's IEP.

(Read More: Carl Icahn Fires Back at Dell Committee)

Noting the company's healthy backlog, he said, "It's 1.7 times tangible book, and it's a pretty good company for an 8.8 multiple."

Trader disclosure: On June 26, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long MGM; Jon Najarian is long EXC; Jon Najarian is long DFS; Jon Najarian is long NKE; Jon Najarian is long FL; Jon Najarian is short AGQ; Jon Najarian is short NEM; Jon Najarian is short ABX; Jon Najarian is short TOL; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long OCN; Karen Finerman is long HLSS; Karen Finerman is long SPY; Karen Finerman is long MDY PUTS; Josh Brown is long AAPL; Josh Brown is long VGK; Josh Brown is long P; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long MHY; Steve Grasso is long HPQ; Steve Grasso is long HERO; Steve Grasso is long LNG; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S.

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