5 Cheap Stocks Billionaire Leon Cooperman Is Buying

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1. Mr. Cooper Group Inc. (NASDAQ: COOP)  

PE Ratio (TTM): 4.50

Mr. Cooper Group Inc (NASDAQ: COOP) is one of the largest home loan service providers. The company offers several lending products, services and technologies. In November 2020, Mr. Cooper shares rallied after Leon Cooperman recommended the stock in a TV interview.  Omega Advisors upped its stake in the company by 13% in the third quarter, ending the period with 4.65 million shares of the company, worth $103.81 million.

Diamond Hill Capital stood by its COOP investment despite large losses during the March crash. Here is what they said at the time:

“Mortgage servicing company Mr. Cooper Group, Inc. underperformed amid fears over advance payments mortgage servicers are required to make to bondholders in the event of missed payments from borrowers. Investors worry that Federal programs encouraging borrowers impacted by the virus to delay mortgage payments will overwhelm the servicing industry’s ability to make payments to bondholders.”

COOP shares quadrupled since then. As of the end of the third quarter, 23 hedge funds out of the 816 tracked by Insider Monkey held stakes in the company. The net value of these stakes is $416.25 million.

Please also see Billionaire Cooperman’s Top 10 Stock Picks and 15 Best Undervalued Stocks To Buy Now.

Disclosure: None

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