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 Leon Cooperman’s High Upside Potential Picks Include Apple Inc. (AAPL)

Apple Inc. (NASDAQ:AAPL) was the most popular stock among hedge funds in the third quarter, and Omega was one of the many funds in our database behind it. Apple Inc. (NASDAQ:AAPL)’s PEG ratio is 0.5, as the Street sees little earnings slowdown in the next several years but the market is so skeptical of the company’s prospects that the trailing P/E is only 12- a figure which generally implies little to no improvement on the bottom line. Even though we’re not as bullish as the analysts, we’re quite interested in Apple Inc. (NASDAQ:AAPL) as we expect at least some growth from the company. Find more tech stocks hedge funds love.

The fund added to its position in Transocean LTD (NYSE:RIG) for a total of 3 million shares. Transocean is an offshore contract driller; while the market is wary of the company due to its role in the Deepwater Horizon disaster, analyst consensus is for enough earnings this year to make for a P/E of 11 and even continued growth to bring the PEG to 0.5. Billionaire Steve Cohen’s SAC Capital Advisors cut its stake in the company but still owned 1.9 million shares (research Cohen’s favorite stocks). We think that it might be a good value stock.

Omega reported owning 1.3 million shares of Altisource Portfolio Solutions S.A. (NASDAQ:ASPS). Altisource is a $2.2 billion market cap mortgage portfolio management services company. Its revenue and earnings were up strongly in the third quarter of 2012 compared to the same period in the previous year. The market has priced in some additional growth- the trailing P/E multiple is 22- but the sell-side still considers the stock cheap with their expectations generating a PEG of 0.4, and the recent growth rates are high enough that we could have a “growth at a reasonable price” stock here. Renaissance Technologies, whose founder Jim Simons is now a billionaire, also had a position in Altisource (see more stocks Renaissance owned).

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.