Tiger Global Management’s High Upside Potential Stocks Include Apple Inc. (AAPL)

Page 1 of 2

We analyze hedge fund filings for investment ideas and for their potential in formulating market-beating investment strategies. For example, in our August newsletter we published a list of the most popular small cap stocks among hedge funds and that portfolio went on to deliver an excess return of 16 percentage points between September and January (read more about our hedge fund investing strategies). We can also use lists of stocks that hedge funds like as recommendations for further research, particularly if we screen them further. The PEG ratio places the P/E multiple, a traditional value metric, in the context of expected earnings growth rates and can therefore serve as a measure of upside potential if the company does in fact hit its earnings targets. Here are five stocks which Tiger Global Management, a Tiger Cub hedge fund (see the full list of Tiger Global’s stock picks) reported owning in its most recent 13F filing which have low PEG ratios:

TIGER GLOBAL MANAGEMENT LLC

Tiger Global owned 1.3 million shares of Apple Inc. (NASDAQ:AAPL) at the end of September. The drop in Apple Inc. (NASDAQ:AAPL)’s stock price over the last few months, including a plunge following its quarterly report, has left it at 10 times trailing earnings. The sell-side has been reducing its targets for the company but still expects moderately high earnings growth rates, and as a result the forward P/E is 9 and the five-year PEG ratio is 0.7. We would place ourselves between analyst consensus and current market sentiment: analyst expectations are too high, but the company will likely grow its earnings enough to prove undervalued. Apple Inc. (NASDAQ:AAPL) was the most popular stock among hedge funds for the third quarter of 2012 (see the top ten rankings).

The fund also had a large position in Yandex NV (NASDAQ:YNDX), a Russian search engine and Web portal. Yandex trades at 34 times trailing earnings, but in the third quarter of 2012 the company reported very high growth rates that- if sustained- could turn out to justify this high valuation. Specifically, revenue was up 41% versus a year earlier and with only a slight shrinking of margins net income increased 34%. Tiger Global reported owning almost 24 million shares of the stock in its 13F.

Three more high upside potential stocks that Tiger Global likes, including another search engine:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!