Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Billionaire John Paulson’s Low P/E Stock Picks Include Freeport-McMoRan Copper & Gold Inc. (FCX)

The fund cut its stake in $16 billion market cap hospital company HCA Holdings Inc (NYSE:HCA) by about 50%, but still owned 3.4 million shares of stock at the beginning of April. Net income was down over 30% last quarter compared to the first quarter of 2012 on flat revenue. The sell-side expects that poor performance to reverse over the next year, and with the market not being too optimistic about HCA Holdings Inc (NYSE:HCA) (possibly due to uncertainty again), the trailing and forward P/Es come in at 12 and 10 respectively.

Rock-Tenn Company (NYSE:RKT) rounds out our list of Paulson’s cheap stock picks, as the fund disclosed ownership of 1.4 million shares of the packaging products company in the filing. After nearly doubling in price over the last year, Rock-Tenn Company (NYSE:RKT) still features a trailing earnings multiple of only 13. Revenue was up only slightly in the first quarter of 2013 versus a year earlier (with much better net margins), but the stock is priced low enough that even modest future growth could make it a potential value play. As such we’d be interested in taking a close look at Rock-Tenn.

In addition to Rock-Tenn, Hess also offers a combination of decent recent performance and an attractive valuation (though many oil and gas companies are cheap at this time). We’re also interested in Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), as while we aren’t fans of management’s acquisitions it is possible that investors have overestimated the amount of shareholder value these deals have put at risk and thus overreacted to the news.

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.