Billionaire Stanley Druckenmiller’s Cheap Stock Picks

Page 1 of 2

Price-to-earnings multiples are crude metrics, but are still at the core of many value investing approached because they concisely put a company’s market valuation in the context of its current performance. In particular, we think they are useful for narrowing down a cluster of stocks into a more reasonable number. Investors can then briefly analyze these companies and then move them on to the next stage of their investment process if they pass muster. Here are five stocks which billionaire Stanley Druckenmiller reported owning in his most recent 13F filing which have both trailing and forward P/E multiples of 13 or lower (or research more stocks Druckenmiller liked):

Druckenmiller’s top pick was Exxon Mobil Corporation (NYSE:XOM), initiating a position of 1.3 million shares. Exxon Mobil made our list of the most popular energy stocks among hedge funds in the third quarter of the year (see the rest of the top ten list). Its 2013 earnings multiple of 11 represents a premium to many oil majors, though it is something of a market leader for the industry and while it did report declines in revenue and earnings in its most recent quarterly report these decreases tended to be steeper at its peers. We think that the company could make for a good long term stock pick.

DUQUESNE CAPITALDruckenmiller also initiated a position in another cheap oil major, Chevron Corporation (NYSE:CVX). Chevron carries trailing and 2013 P/Es of 10 and 9, respectively; it is one of the other oil companies priced slightly lower than Exxon Mobil. It also has turned in a poorer financial performance recently; sales were down 10% in Q3 2012 versus a year earlier and net income fell 33%. As a result investors who are interested in big oil have a choice as to whether they want to pay a premium for a somewhat better company. Billionaire Ken Fisher’s Fisher Asset Management increased its holdings of Chevron during the third quarter of 2012 and closed September with 3.6 million shares in its portfolio (check out Fisher’s stock picks).

Two banks and an energy services company completed our list of cheap Druckenmiller picks:

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!