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.