Here's where market-beating money manager David Herro sees value amid the market turmoil

A man wearing a protective mask sits on top of the Charging Bull sculpture near Wall St. amid the coronavirus pandemic on April 19, 2020 in New York City, United States.
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There are stocks and sectors that are still oversold after the big rebound in U.S. equities, Harris Associates Chief Investment Officer David Herro said, but investors need to make sure their companies are prepared for the economic downturn. 

"Balance sheet and cash flow generation for the next 3, 4, 5 months has to be the key focus of any investor, because first and foremost a company has to make it through the period," Herro said Friday on "Squawk on the Street."