Billionaire Lee Cooperman’s Top 15 Long-Term Stock Picks

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

Number of Hedge Fund Holders: 37  

Omega Advisors’ Stake: $263.7 million

Mr. Cooper Group Inc. (NASDAQ:COOP) is the consumer brand for mortgage servicing and the origination operation of Mr. Cooper Group. The first thing that makes the company worth investing in is its commendable growth despite the rising interest rates. According to the report of the third quarter of 2024, the reported net income was $80 million, including another mark-to-market of $126 million, equivalent to ROCE (Return on Capital Employed) of 6.9% and operating ROTCE (Return on Tangible Common Equity) of 16.8%. Moreover, its servicing portfolio grew 32% year-on-year to $1,239 billion. Secondly, the company has completely acquired Flagstar’s Mortgage Operations, which shows the company’s ability to deliver full-service solutions to financial institutions and clients by the beginning of 2025. Lastly, the company is committed to integrating AI and machine learning in the mortgage industry to deliver top-notch services. For instance, the development of Pyro AI exemplifies this and underscores the focus on a digital-first strategy to drive future growth.

While we acknowledge the potential of Mr. Cooper Group Inc. (NASDAQ:COOP) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than Mr. Cooper Group Inc. (NASDAQ:COOP) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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