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.

Tiger Global’s High Upside Potential Stocks Include Apple Inc. (AAPL)

One way to measure the upside potential of a stock is with the PEG ratio, which takes into account both the traditional value metric of the price-to-earnings multiple and analyst consensus for earnings growth rates. While analysts aren’t always correct, this at least results in a quantitative metric which can be used to screen stocks. We can also look for stocks with low PEG ratios among hedge funds’ top picks; we maintain a database of 13F filings as part of our work developing investment strategies (for example, we have found that the most popular small cap stocks among hedge funds outperform the S&P 500 by an average of 18 percentage points per year). We looked at the top picks from Tiger Cub fund Tiger Global and here are five of their holdings with low PEG ratios (or see the full list of stocks Tiger Global reported owning):

The fund was selling some of its shares of Apple Inc. (NASDAQ:AAPL) during the quarter, but it still included the tech company as its largest position by market value. Apple Inc. (NASDAQ:AAPL) had lost its place as the most popular stock among hedge funds to American International Group Inc (NYSE:AIG) during Q4 (find more of hedge funds’ most popular stocks) and the share price has fallen 23% in the last year as investors become convinced that lower margins will drive a decrease in net income. This has brought Apple Inc. (NASDAQ:AAPL)’s valuation to 10 times trailing earnings, while the sell-side is still expecting some earnings growth.

TIGER GLOBAL MANAGEMENT LLCTiger Global also cut its stake in Russian search engine and Internet portal Yandex NV (NASDAQ:YNDX) yet had over 15 million shares in its portfolio. The company has been reporting good financial results recently, with revenue up 37% and earnings rising 27% in its most recent quarter compared to the same period in the previous year. Yandex’s trailing P/E is high but as long as it continues improving at these rates it would qualify as a growth stock. We would note that Yandex’s stock is highly sensitive to movements in broader market indices at a beta of 2.9.

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.