Yahoo Finance Leon Cooperman's Top Growth Stocks
Leon Cooperman (Trades, Portfolio)'s firm Omega Advisors is one of the largest hedge funds that has maintained a quarter over quarter turnover around 17%. Even in 2008 during the financial crisis, Cooperman was able to beat the market by staying away from the financial stocks.
The value investor does not limit himself to a specific sector when investing. He is more focused on how the company is managed and if the stock is mispriced. Cooperman was heavily inspired by investment guru Warren Buffett (Trades, Portfolio).
Here is a look at Cooperman's top growth stocks in his portfolio.
Apple Inc (AAPL)
Cooperman currently owns 383,790 shares of AAPL, valued at $42,363,000.
California-based technology company Apple was established in 1977. It designs, manufacures and markets mobile communication and media devices, computers, personal music players, software and accessories.
Apple's EBITDA growth rate for the past 10 years was 58% and its current business predictability has a rating of 4.5 out of 5 stars.
As of December 2014, Apple's revenue per share for the trailing twelve months was $33.33 and its growth rate was 23.20%.
One good sign for investors is the company has shown predictable revenue and earnings growth.
According to the DCF caluclator, which is a feature for premium members to find the fair value of a stock, Apple's intrinsic value is currently $211.23 with a 40% margin of safety. AAPL is currently trading at $125.90, so the stock may be undervalued.
McKesson Corp (MCK)
Cooperman owns 715,203 shares of MCK, valued at $102,407,000. The stock consists of 2.5% of his overall portfolio.
McKesson is a delivery company that provides products such as pharmaceuticals, medical supplies and healthcare information technology.
McKesson's EBITDA growth rate for the past ten years was 23.80% and was given a 3.5 star rating for business predictability.
Like Apple, McKesson has also shown predictable revenue and earnings growth. As of December 2014, revenue per share for the trailing twelve months was $740.41 and its growth rate was 33%.
Acccording to the DCF calculator, the stock's intrinsic value is $107.98 with a -113% margin of safety. MCK is currently trading at $229.94, which indicates it may be overvalued.
Comcast Corp (CMCSK)
There are currently 1,778,972 shares of CMCSK in Cooperman's portfolio that have a total value of $102,407,000. Comcast is 1.7% of his portfolio.
Comcast is a global media and technology company that was incorproated in 2001.
Comcast's EBITDA growth rate for the past ten years was 18.40%. The company has a business predictability rating of 4 stars out of 5.
Although Comcast's revenue growth has slowed down over the past twelve months, its average revenue growth rate for the past ten years has been 21.60%. Revenue per share for the trailing twelve months was $26.26.
The DCF calculator gives the stock a fair value of $91.10 with a 35% margin of safety. CMCSK is currently trading at $59.15, which indicates the stock may currently be undervalued.
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This article first appeared on GuruFocus.
