X
<

Leon Cooperman: 'The Market's Not Cheap, but It's Not Expensive'

PART:
1 2 3 4 5
Part 4
Leon Cooperman: 'The Market's Not Cheap, but It's Not Expensive' PART 4 OF 5

What’s Leon Cooperman’s Largest Position?

Leon Cooperman on Google

Legendary investor Leon Cooperman shared his favorite stock picks and largest position in a recent interview with CNBC.

What&#8217;s Leon Cooperman’s Largest Position?

Interested in SPY? Don't miss the next report.

Receive e-mail alerts for new research on SPY

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

He said, “I’m finding a lot of stocks that are attractively priced, my largest position is Google.” He is optimistic about Google (GOOGL) and expects its sales could grow 20% per year.

Alphabet’s earnings

Alphabet reported its 3Q17 earnings on October 26, 2017. The company posted EPS (earnings per share) of $9.57, which beat analysts’ estimates of $8.33. On November 1, 2017, Alphabet was trading at a trailing price-to-earnings multiple of 32.9x and a 12-month forward price-to-earnings ratio of 26.3x. The technology sector (XLK) was trading at a trailing price-to-earnings of 29.0x. The one-year EPS (earnings per share) growth rate stood at 25.1%. The S&P 500 ETF’s (SPY) (IWM) EPS growth rate stood at 21.5%.

Cooperman is especially impressed with Alphabet’s high positive cash flow compared to other companies (QQQ). A company can use positive cash flow to buy other businesses, expand its existing production capabilities, and declare dividends.

According to a 13F filing report, Google is the largest holding of Omega Advisors as of June 30, 2017. It represents nearly 6.2% of Omega Advisors’ portfolio.

In the next part of this series, we’ll analyze Leon Cooperman’s view on Facebook (FB).

X

Please select a profession that best describes you: