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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

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

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

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

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

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!