In this article, we will discuss 5 undervalued stocks to buy according to billionaire Leon Cooperman. If you want to read about similar stocks you can go to 10 Undervalued Stocks to Buy According to Billionaire Leon Cooperman.
5. Coterra Energy Inc. (NYSE:CTRA)
Omega Advisors’ Stake Value: $60,800,000
Percentage of Omega Advisors’ 13F Portfolio: 3.05%
PE Ratio as of May 25: 7.29
Number of Hedge Fund Holders: 39
Coterra Energy Inc. (NYSE:CTRA) operates as an independent oil and gas company involved in the exploration and production of oil, natural gas, and natural gas liquids in the United States. As of May 25, the stock has a PE ratio of 7.29, a decent dividend yield of 1.84%, and has gained a whopping 106.44% over the past twelve months. Coterra Energy Inc. (NYSE:CTRA) is one of the best undervalued stocks to buy according to billionaire Leon Cooperman.
On April 25, Raymond James analyst John Freeman raised his price target on Coterra Energy Inc. (NYSE:CTRA) to $42 from $31 and reiterated an Outperform rating on the shares.
4. Bausch Health Companies (NYSE:BHC)
Omega Advisors’ Stake Value: $69,025,000
Percentage of Omega Advisors’ 13F Portfolio: 3.46%
PE Ratio as of May 25: 2.31
Number of Hedge Fund Holders: 48
Bausch Health Companies (NYSE:BHC) develops, manufactures, and sells a range of pharmaceutical, medical device, and over-the-counter (OTC) products. Bausch Health Companies (NYSE:BHC) is among the top 5 undervalued stocks to buy according to billionaire Leon Cooperman. As of May 25, the stock has a remarkably low PE ratio of 2.31, trading at $9.60 a share with the company’s market capitalization sitting at $3.59 billion.
On May 11, BMO Capital analyst Gary Nachman lowered his price target on Bausch Health Companies (NYSE:BHC) to $15 from $26 but maintained a Market Perform rating on the shares.
3. Cigna Corporation (NYSE:CI)
Omega Advisors’ Stake Value: $103,334,000
Percentage of Omega Advisors’ 13F Portfolio: 5.19%
PE Ratio as of May 25: 11.66
Number of Hedge Fund Holders: 63
Cigna Corporation (NYSE:CI) provides insurance and related products and services in the United States. The stock is among the top 10 holdings of Omega Advisors and is also one of the best undervalued stocks to buy according to billionaire Leon Cooperman.
This May, Barclays analyst Steve Valiquette raised his price target on Cigna Corporation (NYSE:CI) to $310 from $275 and reiterated an Overweight rating on the shares ahead of the company’s investor day on June 3.
By the end of Q1 2022, 63 hedge funds were long Cigna Corporation (NYSE:CI) with stakes of $2.69 billion in the company. This is compared to 53 hedge funds in the fourth quarter of 2021, with stakes of $1.92 billion. The hedge fund sentiment for the stock is positive.
Here is what Davis Funds had to say about Cigna Corporation (NYSE:CI) in its “Davis Opportunity Fund” fourth-quarter 2021 investor letter:
“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”
2. Devon Energy Corporation (NYSE:DVN)
Omega Advisors’ Stake Value: $119,881,000
Percentage of Omega Advisors’ 13F Portfolio: 6.02%
PE Ratio as of May 25: 8.20
Number of Hedge Fund Holders: 66
As of the end of Q1, 2022, Omega Advisors owns more than 2.72 million shares of Devon Energy Corporation (NYSE:DVN) which amount to a stake of $119.88 million. The investment covers 6.02% of Leon Cooperman’s 13F portfolio.
On May 9, Raymond James analyst John Freeman raised his price target on Devon Energy Corporation (NYSE:DVN) to $90 from $85 and reiterated a Strong Buy rating on the shares.
At the close of the first quarter of 2022, 66 hedge funds were long Devon Energy Corporation (NYSE:DVN) with stakes worth $1.92 billion. This is compared to 51 hedge funds in the previous quarter with stakes of $1.74 billion. The hedge fund sentiment for the stock is positive.
1. Mr. Cooper Group Inc. (NASDAQ:COOP)
Omega Advisors’ Stake Value: $176,801,000
Percentage of Omega Advisors’ 13F Portfolio: 8.88%
PE Ratio as of May 25: 10.92
Number of Hedge Fund Holders: 30
Mr. Cooper Group Inc. (NASDAQ:COOP) operates as a financial services company, providing servicing, origination, and transaction-based services related to single-family residences in the United States. The stock is the top 13F holding of Omega Advisors as of Q1 2022. According to the Q1 SEC filings, Omega Advisors owns 4.24 million shares of Mr. Cooper Group Inc. (NASDAQ:COOP) which amounts to a stake value of $176.80 million. The investment covers 8.88% of Leon Cooperman’s 13F portfolio.
At the close of Q1 2022, 30 hedge funds were bullish on Mr. Cooper Group Inc. (NASDAQ:COOP). The total stakes of these hedge funds were valued at $504.20 million.
You can also take a look at 15 Best Undervalued Stocks to Buy Now and 10 Best Undervalued Stocks to Buy Now According to Reddit.
