Billionaire David Tepper’s Cheap Stock Picks Include Apple Inc. (AAPL)

According to the 13F, Appaloosa slightly increased its holdings of General Motors Company (NYSE:GM) to a total of 5.7 million shares. The trailing P/E here is 12, with analysts looking for rapid growth over the next several years: the forward earnings multiple is only 8 with a five-year PEG ratio of 0.7. Some bulls on the automakers have suggested that the U.S. consumer auto fleet is historically aged, providing some upside from pent-up demand; however, General Motors Company (NYSE:GM)’s earnings fell 11% in the first quarter of 2013 versus a year earlier on weakness in other markets.

Tepper and his team were apparently bullish on autos in general, owning almost 12 million shares of Ford Motor Company (NYSE:F) as well as their position in General Motors Company (NYSE:GM). Ford Motor Company (NYSE:F) reported better growth numbers in its most recent 10-Q than GM did, and is actually valued at a small discount to its American peer in terms of trailing earnings numbers with a multiple of 11. Even though the sell-side is less optimistic here over the long term, the stock seems to be at least as attractive as GM and we’d say Ford Motor Company (NYSE:F) is well worth comparing to other automakers.

Foreign automakers such as Honda and Toyota may have better prospects, though they also trade at a premium to Ford and GM making for an interesting comparison. As we’ve mentioned US Airways also has strengths and weaknesses relative to its peers, and so investors shouldn’t be too quick to jump on its low multiples. We’ve also discussed that expectations are low for Apple Inc. (NASDAQ:AAPL), and while we would guess that earnings will continue to fall the company is certainly worth monitoring for any positive developments.

Disclosure: I own no shares of any stocks mentioned in this article.