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

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Chinese search engine Baidu.com, Inc. (NASDAQ:BIDU) was another of the fund’s top ten picks and another stock where analysts are more bullish than many investors. Specifically, the five-year PEG ratio is 0.5 as a result of earnings multiples in the teens and high reported growth rates; the market is likely worried about Chinese macro conditions and a number of accounting frauds which have been exposed at other companies in the last couple years. Billionaire Ken Fisher’s Fisher Asset Management reported a position of 1.9 million shares in Baidu at the end of December (check out Fisher’s stock picks).

The 13F disclosed a new position of 2.1 million shares in The McGraw-Hill Companies, Inc. (NYSE:MHP), which recently sold its education unit to a private equity fund. It is now a financial information services company which owns brands including Standard & Poor’s and Capital IQ. Its current valuation places the stock at 14 times forward earnings estimates and a five-year PEG ratio of 0.8. JANA Partners, managed by value investor Barry Rosenstein, was another major holder of the stock with a position of 2.2 million shares (research more stocks JANA owns).

TAL Education Group (NYSE:XRS) rounds out our list of high upside potential picks from Tiger Global. According to the filing, the fund owned over 10 million shares of the Chinese tutoring services company at the end of 2012. Of course as with Baidu investors are likely pricing in macro and accounting risk, with the result being that quite impressive growth numbers- its most recent fiscal quarter, which ended in November, showed revenue up 20% versus a year earlier- give a trailing P/E of only 22. Analyst expectations imply a current-year earnings multiple of 16.

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

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