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Here's why Alphabet is a good value play: Oakmark's Nygren

Investors looking for strong value plays may find an unusual one in Alphabet, Oakmark portfolio manager Bill Nygren said Tuesday.

"It's one of the few, that you would call, growth stocks that we own. We think that the market generally underestimates how profitable search is, and we like the new reporting structure that Google's going to be using," Nygren told CNBC's "Fast Money: Halftime Report."

He also said Alphabet's new reporting structure will help investors see the company's search profitability as well as its large investments. "In the past, it's just been reported together, and it's just been anybody's guess as to how much the profits are versus how much the losses are."

Shares of Alphabet, formerly known as Google, are not typically considered a "value" play given its pricing. The stock hovered around $743 Tuesday afternoon, up more than 1 percent.

Nonetheless, the tech giant's stock has not been immune to the broad-based sell-off that has kicked off 2016, having fallen more than 5 percent so far this year.

The sell-off was spurred by a tumble in Chinese equities as well as by falling oil prices. U.S. crude hit a fresh 12-year low Tuesday.

Nonetheless, Nygren believes commodity prices are likely to move higher, global growth will be better than expected and the dollar will not be as big of a headwind.

"We look at 2016 the same way we looked at 2015, thinking that, on our five- to seven-year time frame interest rates are likely to move higher," he said. "Most of those items didn't work in our favor last year, but we don't see any reason to change our forecast."

Disclosure: Oakmark Select (OAKLX) owns shares of Alphabet.