Alcatel Lucent SA (ADR) (ALU), Analog Devices, Inc. (ADI) & More: Billionaire Steve Cohen’s New Stocks

This growth should come from some of the company’s top games, including the release of Grand Theft Auto V, which could account for as much as 50% of fiscal year 2014 revenue. The emergence of online games is also impacting the company, but it appears to be taking key steps to enter the digital market. Last quarter, digital revenue grew 244% year over year, and made up 23% of total revenue.

Worth noting is that the stock does trade on the cheap side of the industry, trading at only 0.85 times sales, compared to major peers Electronic Arts Inc. (NASDAQ:EA) (1.5 times) and Activision Blizzard, Inc. (NASDAQ:ATVI) (2.25 times).

Big Lots, Inc. (NYSE:BIG) is one of the major discount retailers in the U.S., competing with the major dollar stores Dollar General and Family Dollar. The sluggish economic environment is boding well for the company, where customers are trading down in an effort to save money. The company continues to surprise investors, beating third and fourth-quarter earnings expectations — 4Q EPS was up 19% year over year.

The company also acquired Liquidation World in 2011, which marked its expansion into Canada. The company hopes to expand further, and opened 92 stores in 2011, 87 in 2012, and has plans to open 50 in 2013.

Boding well for Big Lots is the fact that the company is also cheap when compared to major peers:

Don’t be fooled

Billionaire Steve Cohen bought a number of stocks last quarter, but his top five largest positions include a number of less covered stocks that could still provide solid undervalued opportunities. O’Reilly is well positioned to capitalize on the aging of vehicles, while Take-Two is taking strides to capitalize on the digitalization of the gaming industry. Both Analog Devices, Inc. (NASDAQ:ADI) (semiconductors) and Alcatel Lucent SA (ADR) (NYSE:ALU) (communications equipment) operate in rapidly changing industries and caution should be used when investing, while Big Lots is a solid bet in the discount retail sector.

The article Billionaire Steve Cohen’s New Stocks originally appeared on Fool.com and is written by Marshall Hargrave.

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