In this article, we’ll explore Leon Cooperman’s stock portfolio and look at his firm’s top 12 picks.
Omega Advisors, Inc., an investment firm based in New York, specializes in providing advisory and portfolio management services. The firm focuses on domestic public equity and employs hedging strategies to protect its investments. Leon Cooperman, the chairman and CEO, follows a value-oriented investment strategy that emphasizes value equities and utilizes a top-down approach to select sectors for investment. His methodology integrates fundamental analysis to manage both long and short positions, which helps in constructing diversified portfolios. These portfolios are assessed against the S&P 500 index to gauge their performance effectively.
Leon G. Cooperman is a billionaire investor known for his significant contributions to the investment landscape. He is the first in his family to earn a college degree, graduating from Hunter College, where he was active in the Alpha Epsilon Pi fraternity. After completing his education, Cooperman began his career as a quality control engineer at Xerox in 1965 and later earned an MBA from Columbia Business School in 1967. He is also a Chartered Financial Analyst (CFA), which reflects his deep knowledge of investment analysis and portfolio management.
Leon Cooperman Warns of Rising National Debt
In a recent CNBC interview on September 25, Leon Cooperman expressed significant concerns about two main issues affecting the economy. He highlighted the national debt, which has surged from $20 trillion in 2017 to $34 trillion in 2024, growing at a rate that far outpaces the economy. He warns that this increase could lead to serious problems in the future, especially since candidates running for office are not addressing the deficit.
“I’m very concerned about two things. One is the debt buildup. We have two candidates running for office, and neither one talks about the deficit or the buildup of debt. In 2017, I think our national debt was $20 trillion. Seven years later, it’s $34 trillion. That’s a growth rate far in excess of the growth rate of the economy, and it’s going to be a problem one day.”
When asked if the Fed’s rate cuts have led him to invest more in stocks, Leon Cooperman replied that he is already fully invested, primarily in various assets. He has allocated about 20% of his portfolio to bonds and believes the government’s conduct is disappointing. Additionally, he has around 15% in energy investments, seeing potential in that sector due to current events in the Middle East. He noted that while the Fed is cutting short-term rates, he anticipates long-term rates will rise, particularly for ten-year bonds.
Cooperman was also asked about the Fed’s rate cuts and their impact on the economy. He responded that short-term rates are currently too high compared to historical standards. He explained that the yield on the ten-year government bond should align with GDP growth, which he estimates at around 5% (2.5% real growth plus 2.5% inflation). He believes that at a 5% yield, the ten-year bond is undervalued and anticipates rates will rise.
Leon Cooperman Thinks “Stocks Are The Place To Be”
Leon Cooperman expressed concerns about the potential future problems with government debt, suggesting that issues may arise unexpectedly. At 81 years old, he reflected on his experience during past market bubbles in 2000 and 1972, emphasizing his belief that stocks remain the best investment choice while avoiding bonds.
“I may be too old. Take me out behind the barn and shoot me. I’m 81 years old. I’ve been through a couple of bubbles—the 2000 bubble and the 1972 bubble… I think stocks are the best place to be. I would avoid bonds.”
With that, let’s take a look at the top 12 stocks picks of Leon Cooperman’s Omega Advisors
Our Methodology
This article reviews the top 12 stock holdings of Omega Advisors as of the second quarter of 2024, highlighting the number of hedge funds also invested in these companies. The stocks are organized in ascending order based on Omega Advisors’ stake as of June 30, 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Leon Cooperman Stock Portfolio: Top 12 Picks
12. Mirion Technologies Inc. (NASDAQ:MIR)
Total Number of Shares Owned: 8,000,000
Total Value of Shares Owned: $85,920,000
Number of Hedge Fund Holders: 20
Mirion Technologies Inc. (NASDAQ:MIR) is showing promising potential as an investment opportunity, supported by strong financial results and strategic partnerships. In its Q2 2024 earnings report, Mirion Technologies Inc. (NASDAQ:MIR) announced revenues of $207.1 million, a 5% increase compared to the previous year. Additionally, Mirion Technologies Inc. (NASDAQ:MIR) achieved an adjusted EBITDA of $48.8 million, reflecting a 10.2% rise and a healthy adjusted EBITDA margin of 23.6%. These results highlight Mirion’s effective cost management and operational efficiency.
A significant development for Mirion Technologies Inc. (NASDAQ:MIR) is its new partnership with EDF, which is recognized as the world’s largest operator of nuclear power plants. This collaboration is expected to bolster Mirion Technologies Inc. (NASDAQ:MIR)’s presence in the nuclear sector and drive future growth. The company is well-positioned to capitalize on the growing demand for its services in various markets, including healthcare and technology.
Analysts are optimistic about Mirion Technologies Inc. (NASDAQ:MIR)’s long-term prospects, with several raising their price targets following the favorable Q2 earnings. Mirion Technologies Inc. (NASDAQ:MIR) has also revised its guidance for 2024, now expecting organic revenue growth between 4% and 6%, with adjusted EBITDA projected to be in the range of $195 million to $205 million. These positive indicators suggest a solid foundation for Mirion Technologies Inc. (NASDAQ:MIR) as it continues to expand and innovate within its industry.
11. The Cigna Group (NYSE:CI)
Total Number of Shares Owned: 270,655
Total Value of Shares Owned: $89,470,423
Number of Hedge Fund Holders: 66
The Cigna Group (NYSE:CI) has showcased impressive performance in Q2 2024, reinforcing a positive outlook for The Cigna Group (NYSE:CI). The total revenue for the quarter reached $60.5 billion, marking a 25% increase compared to the same period last year. This growth was largely driven by significant advancements in the Evernorth Health Services segment, which also saw adjusted revenues increase by 30%.
The success of The Cigna Group (NYSE:CI)’s strategic initiatives has played a crucial role in this upward trend. Additionally, adjusted earnings per share (EPS) climbed to $6.72, reflecting a 10% rise from the prior year and exceeding analyst expectations. In terms of profitability, The Cigna Group (NYSE:CI) reported adjusted income from operations of $1.9 billion, slightly up from $1.8 billion in Q2 2023. Although the total number of medical customers decreased to 19 million, the company is focused on improving profitability through strategic pricing adjustments.
Furthermore, The Cigna Group (NYSE:CI) has updated its projections for the full year 2024, now expecting adjusted revenues of at least $235 billion and adjusted EPS of at least $28.40. This forecast signals strong confidence in The Cigna Group (NYSE:CI)’s operational efficiency and market position. Recent developments include the launch of an interchangeable biosimilar for Humira, which aims to lower costs for patients, as well as an expansion of The Cigna Group (NYSE:CI)’s healthcare services to meet increasing demand.
Additionally, The Cigna Group (NYSE:CI) is actively engaged in share repurchases, committing about $5 billion to buy back 14.7 million shares so far this year, demonstrating management’s dedication to enhancing shareholder value.
10. Ashland Global Holdings Inc. (NYSE:ASH)
Total Number of Shares Owned: 982,047
Total Value of Shares Owned: $92,793,621
Number of Hedge Fund Investors: 25
The bullish outlook for Ashland Global Holdings Inc. (NYSE:ASH) is primarily driven by its strong performance in Q2 2024, where the company exceeded both earnings and revenue expectations despite facing some challenges in certain areas. Ashland Global Holdings Inc. (NYSE:ASH) reported earnings per share (EPS) of $1.27, surpassing the forecast of $1.14, and generated revenue of $575 million, which was slightly above analyst estimates.
This success was largely fueled by growth in its Personal Care segment, where sales increased by 1.2% due to higher demand for skin, oral, and hair care products. Additionally, the Specialty Additives segment also performed well, achieving $157 million in sales, even amid price reductions in Asia.
Moreover, Ashland Global Holdings Inc. (NYSE:ASH)’s proactive approach to cost management and strategic initiatives, such as divesting its nutraceutical business to streamline operations, contribute positively to its long-term outlook. Ashland Global Holdings Inc. (NYSE:ASH)’s commitment to returning value to shareholders is evident in its recent 5.2% increase in dividends, further strengthening the case for optimism about its future performance. These factors combined position Ashland Global Holdings Inc. (NYSE:ASH) as a solid investment opportunity.
9. Regal Rexnord Corporation (NYSE:RRX)
Total Number of Shares Owned: 700,000
Total Value of Shares Owned: $94,654,000
Number of Hedge Fund Investors: 32
In Q2 2024, Regal Rexnord Corporation (NYSE:RRX)’s sales dipped to $1.55 billion from $1.77 billion in the same quarter the previous year. However, its net income rose significantly to $62.5 million, nearly doubling from $32.1 million in Q2 2023. This increase highlights improved profitability, with earnings per share (EPS) growing from $0.48 to $0.94 year-over-year. For the first half of 2024, Regal Rexnord Corporation (NYSE:RRX) also experienced a modest increase in sales compared to the previous year, while net income jumped from $26.2 million to $82.3 million, showcasing strong operational performance.
A crucial factor in this positive outlook is the ongoing integration of Regal Rexnord Corporation (NYSE:RRX)’s acquisition of Altra Industrial Motion in 2022. While this acquisition initially increased Regal Rexnord Corporation (NYSE:RRX)’s debt, it is expected to generate synergies that enhance operational efficiency and long-term profitability, especially in the Automation & Motion Control segment. Furthermore, Regal Rexnord Corporation (NYSE:RRX)’s commitment to technological innovation, particularly through IoT and AI-driven products in power transmission and industrial automation, is likely to strengthen its competitive edge.
Regal Rexnord Corporation (NYSE:RRX)’s resilience against challenging macroeconomic conditions, such as fluctuating commodity prices and supply chain disruptions, underscores its robust market position. Regal Rexnord Corporation (NYSE:RRX) has been proactive in managing its debt and operational costs, setting a solid foundation for future earnings growth and capital returns to shareholders.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Regal Rexnord Corporation (NYSE:RRX) in its Q2 2024 investor letter:
“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Here there was a -25% showing from Regal Rexnord Corporation (NYSE:RRX), which specializes in motion control systems, climate solutions, and similar mechanical components for a variety of end markets.
There were ongoing pressures on its Power Efficiency and Automation & Motion Control segments that related to destocking in the automation or HVAC end markets. Meanwhile the soon-to-be-divested Industrial Powertrain operations showed better-than-expected results, and the net results were inline revenues and earnings, though lower guidance to adjust for the divestiture. Regal’s management expects a recovery in orders later in 2024 and in the meanwhile will reduce its debt levels, so we added to our position.”
8. Devon Energy Corporation (NYSE:DVN)
Total Number of Shares Owned: 2,200,000
Total Value of Shares Owned: $104,280,000
Number of Hedge Fund Investors: 52
Devon Energy Corporation (NYSE:DVN) reported earnings per share (EPS) of $1.41, surpassing analysts’ estimates of $1.26 by nearly 12%. Additionally, Devon Energy Corporation (NYSE:DVN) generated $3.92 billion in revenue, reflecting a year-over-year growth of 13.4% and exceeding market expectations. A significant driver of this success was the record oil production of 335,000 barrels per day, which exceeded the company’s guidance by 3%, primarily due to strong well productivity in the Delaware Basin.
Moreover, Devon Energy Corporation (NYSE:DVN)’s operational efficiency played a crucial role in its strong financial results. Devon Energy Corporation (NYSE:DVN) achieved reduced cycle times and set new records in drilling and completion, which helped lower costs and maximize profitability. In line with its commitment to shareholder returns, Devon Energy Corporation (NYSE:DVN) expanded its share repurchase program by 67%, raising it to $5 billion, and maintained a competitive dividend that appeals to income-focused investors.
Devon Energy Corporation (NYSE:DVN) also raised its oil production guidance for 2024 by 5%, indicating confidence in its operational capabilities and market conditions. These factors collectively paint a positive picture for investors considering Devon Energy Corporation (NYSE:DVN) as a strong investment opportunity.
7. Lithia Motors Inc. (NYSE:LAD)
Total Number of Shares Owned: 416,085
Total Value of Shares Owned: $105,040,658
Number of Hedge Fund Investors: 35
The bullish outlook for Lithia Motors Inc. (NYSE:LAD) is strongly supported by its impressive financial performance in Q2 2024, where the company reported record revenue of $9.2 billion. This figure represents a significant 14% increase compared to the previous year, demonstrating robust growth even in the face of economic challenges. Additionally, Lithia Motors Inc. (NYSE:LAD) achieved an adjusted earnings per share (EPS) of $7.87, surpassing analysts’ expectations and showing a remarkable 30% improvement from the previous quarter.
This positive trend is further bolstered by Lithia Motors Inc. (NYSE:LAD)’s effective cost-saving strategies and better-than-anticipated profitability in its financing operations. Moreover, Lithia Motors Inc. (NYSE:LAD) has been proactive in enhancing shareholder value through share repurchases and maintaining strong free cash flow, indicating a commitment to returning value to its investors. This combination of strong revenue growth, improved profitability, and shareholder-focused strategies positions Lithia Motors Inc. (NYSE:LAD) favorably for future success.
Omega Advisors, Inc. has 416,085 shares of Lithia Motors Inc. (NYSE:LAD), valued at $105,040,658.
6. Alphabet Inc. (NASDAQ:GOOGL)
Total Number of Shares Owned: 650,000
Total Value of Shares Owned: $118,397,500
Number of Hedge Fund Investors: 216
In FQ2 2024, Alphabet Inc. (NASDAQ:GOOGL) reported impressive revenue of $84.7 billion, which represents a 14% increase year-over-year, exceeding analyst expectations. Alphabet Inc. (NASDAQ:GOOGL) net income also rose significantly to $23.6 billion, up from $18.3 billion the previous year, while earnings per share (EPS) of $1.89 marked the sixth consecutive quarter of surpassing revenue and earnings forecasts.
A key driver of this success is the performance of Google Cloud, which surpassed $10 billion in revenue for the first time, highlighting the increasing demand for cloud services among enterprise clients. Meanwhile, Google Search continues to be a major revenue source, generating $48.5 billion. Alphabet Inc. (NASDAQ:GOOGL)’s commitment to AI is another significant factor in its bullish case. CEO Sundar Pichai emphasized Alphabet Inc. (NASDAQ:GOOGL)’s ongoing innovations across its AI offerings, positioning it well for future growth in this area, particularly within its cloud services and advertising platforms.
Additionally, YouTube’s advertising revenue reached $8.66 billion, underscoring its crucial role in Alphabet Inc. (NASDAQ:GOOGL)’s overall strategy. Google’s total advertising revenue climbed to $64.6 billion, further solidifying its dominance in the digital advertising space. Given its consistent financial success and strategic investments in AI and cloud technology, Alphabet Inc. (NASDAQ:GOOGL) presents an attractive opportunity for investors looking to capitalize on growth in the tech sector.
Diamond Hill Large Cap Strategy stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2024 investor letter:
“Among our top individual contributors in Q2 were Amazon, Texas Instruments and Alphabet Inc. (NASDAQ:GOOGL). Media and technology company Alphabet also continued delivering strong results in its search, YouTube advertising, YouTube subscription and cloud businesses. Shares rose amid an environment that continues favoring mega-cap technology companies.”
5. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)
Total Number of Shares Owned: 3,607,500
Total Value of Shares Owned: $135,786,300
Number of Hedge Fund Investors: 53
As North America’s largest provider of modular space and portable storage solutions, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) serves a variety of industries, including construction, healthcare, and education. This market leadership allows WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) to benefit from the rising demand for flexible space solutions, as evidenced by solid growth in leasing revenue in Q2 2024.
To enhance profitability,WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) has initiated organizational changes aimed at achieving $40 million in annual cost savings. These improvements focus on increasing sales efficiency, optimizing logistics, and leveraging technological advancements to boost margins. Furthermore, the recent acquisition of McGrath RentCorp is a strategic move that strengthens WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)’s market dominance, although it has faced some regulatory scrutiny. This acquisition demonstrates WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)’s commitment to expanding its presence in the market and creating synergies for growth.
Despite reducing its revenue and EBITDA guidance, the financial outlook remains positive, with analysts optimistic about WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)’s strong cash flow generation. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) projects a free cash flow of approximately $700 million by 2026, offering an attractive yield for long-term investors. While short-term challenges such as softer demand and increased tax impacts may pose difficulties, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)’s strategic focus on efficiency, acquisitions, and cash flow generation supports a compelling investment case.
Omega Advisors, Inc. holds 3,607,500 shares of WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), valued at $135,786,300.
ClearBridge SMID Cap Growth Strategy stated the following regarding WillScot Holdings Corporation (NASDAQ:WSC) in its Q2 2024 investor letter:
“Stock selection in industrials was the leading detractor from relative performance, as the prospect of a higher-for-longer interest rates environment weighed on investors’ outlooks for industrial and nonresidential construction. Also impacted was WillScot Holdings Corporation (NASDAQ:WSC), the North American leader in turnkey modular space and portable storage solutions. The company’s stock price pulled back amid a decline in nonresidential construction starts and a less optimistic outlook for short-cycle industrials. However, WillScot continues to have high cash flow yields and a strong order backlog, which should help the company to weather near-term headwinds.”
4. Apollo Global Management Inc. (NYSE:APO)
Total Number of Shares Owned: 1,525,000
Total Value of Shares Owned: $180,056,750
Number of Hedge Fund Holders: 79
Apollo Global Management Inc. (NYSE:APO) has reported impressive results for Q2 2024, showcasing a revenue of $5.97 billion, which represents a 17.5% year-over-year increase. Apollo Global Management Inc. (NYSE:APO)’s net income surged by 44% to $828 million, indicating strong profitability. A significant factor driving this performance is the record fee-related earnings in its asset management division, supported by substantial achievements in debt origination and third-party fundraising.
These metrics are particularly noteworthy in the context of the current high-interest rate environment, which has made alternative investments increasingly attractive. The Retirement Services segment, led by its subsidiary Athene, has been crucial for growth, drawing considerable third-party capital after the successful fundraising for ADIP II, which has been recognized as the largest equity sidecar in the industry.
Although total assets under management stood at $671 billion, slightly falling short of analyst expectations, the ongoing demand for alternative investments reflects Apollo Global Management Inc. (NYSE:APO)’s strong competitive position. Additionally, the company announced a quarterly dividend of $0.4625 per share, highlighting its commitment to returning value to shareholders.
Baron FinTech Fund stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q2 2024 investor letter:
“Strength in Tech-Enabled Financials was broad based, led by gains from alternative asset manager Apollo Global Management, Inc. (NYSE:APO) and specialty insurer Arch Capital Group Ltd. Apollo continues to benefit from disruptive trends in financial services, most notably the shift of retirement assets into higher-yielding private credit given the company’s dual role as an asset manager and an annuity provider.”
3. Vertiv Holdings Co. (NYSE:VRT)
Total Number of Shares Owned: 2,100,000
Total Value of Shares Owned: $181,797,000
Number of Hedge Fund Investors: 92
The bullish outlook for Vertiv Holdings Co. (NYSE:VRT) is based on its strong financial performance and strategic position in the rapidly growing data center and AI infrastructure markets. In Q2 2024, Vertiv Holdings Co. (NYSE:VRT) reported impressive net sales of $1.95 billion, marking a 13% increase compared to the previous year and surpassing market expectations. Vertiv Holdings Co. (NYSE:VRT) also experienced a remarkable 57% growth in organic orders, highlighting the strong demand for its diverse product offerings.
Key financial metrics include an adjusted earnings per share (EPS) of $0.67, which exceeded consensus estimates, and a 52% increase in adjusted operating profit, reaching $382 million. Additionally, Vertiv Holdings Co. (NYSE:VRT)’s operating margin improved significantly, expanding by 510 basis points to 19.6%. This growth was fueled by higher sales volumes, better pricing strategies, and enhanced productivity. Vertiv Holdings Co. (NYSE:VRT) also demonstrated robust cash flow, reporting $333 million in adjusted free cash flow and maintaining strong liquidity of $1.2 billion, with no borrowings under its credit facility.
A crucial driver of Vertiv Holdings Co. (NYSE:VRT)’s growth is its focus on scaling AI deployment. Vertiv Holdings Co. (NYSE:VRT) is investing in research and development as well as expanding its capacity to meet the increasing demand for essential digital infrastructure, particularly in data centres where AI and cloud computing are driving significant growth. Vertiv Holdings Co. (NYSE:VRT) has raised its full-year revenue guidance for 2024 to between $7.59 billion and $7.74 billion, reinforcing its positive outlook as it continues to leverage operational excellence and increasing market demand.
Omega Advisors, Inc. owns 2,100,000 shares of Vertiv Holdings Co. (NYSE:VRT), valued at $181,797,000.
Baird Mid Cap Growth Equity Strategy stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its Q2 2024 investor letter:
“We made several adjustments to our technology sector mix. We also added Manhattan Associates and Vertiv Holdings Co (NYSE:VRT). Vertiv is a power equipment company benefitting from secular growth in data center spending and in artificial intelligence-driven thermal management solutions.”
2. Energy Transfer L.P. (NYSE:ET)
Total Number of Shares Owned: 12,272,800
Total Value of Shares Owned: $199,064,816
Number of Hedge Fund Investors: 32
During FQ2 2024, Energy Transfer L.P. (NYSE:ET) achieved an adjusted EBITDA of $3.76 billion, a notable increase from $3.1 billion in Q2 2023. This growth was fueled by record volumes in its crude oil and natural gas liquids (NGL) pipelines and exports. Additionally, Energy Transfer L.P. (NYSE:ET)’s NGL and refined products segments also performed well, with adjusted EBITDA rising to $1.07 billion, driven by high transportation volumes and terminal operations, alongside gains from hedging strategies.
Energy Transfer L.P. (NYSE:ET)’s strategic acquisitions, including Crestwood and Lotus, have significantly enhanced its capacity and transportation volumes, particularly in the Permian Basin. These acquisitions, coupled with new projects like the Red Lake 3 processing plant and a joint venture with Sunoco in the Permian Basin, position the company for robust future growth. The acquisition of WTG also strengthens its access to the increasing supply of natural gas and NGL.
Although Energy Transfer L.P. (NYSE:ET) faces some operational challenges, such as shipper refunds affecting revenues in specific segments, the overall outlook remains positive. Strong fundamentals in the energy infrastructure sector, rising export volumes, and increasing customer demand suggest that Energy Transfer L.P. (NYSE:ET) is well-positioned for continued success.
1. Mr. Cooper Group Inc. (NASDAQ:COOP)
Total Number of Shares Owned: 2,860,600
Total Value of Shares Owned: $232,366,538
Number of Hedge Fund Investors: 37
In Q2 2024, Mr. Cooper Group Inc. (NASDAQ:COOP) reported impressive earnings, with earnings per share (EPS) of $2.52, surpassing analyst expectations of $2.33. Mr. Cooper Group Inc. (NASDAQ:COOP) also achieved a revenue of $583 million, reflecting a 3.4% increase from the previous year. Notably, Mr. Cooper Group Inc. (NASDAQ:COOP) pretax operating income soared by 46% year-over-year to $219 million, highlighting significant operational efficiency and profitability.
A key factor in this positive outlook is the strategic acquisition of Flagstar’s mortgage operations for $1.4 billion in cash. This acquisition brought in $1.2 billion in mortgage servicing rights and expanded Mr. Cooper Group Inc. (NASDAQ:COOP)’s servicing portfolio to a total of $1.2 trillion, significantly bolstering its servicing business. With a growing subservicing mix making up 52% of the portfolio, this move strengthens Mr. Cooper Group Inc. (NASDAQ:COOP)’s position in the market.
Additionally, Mr. Cooper Group Inc. (NASDAQ:COOP)’s tangible book value per share increased by 17% year-over-year to $68.67, demonstrating solid financial health.Mr. Cooper Group Inc. (NASDAQ:COOP) has also been proactive in returning value to shareholders, reducing outstanding shares by 4% over the past year through its share repurchase program and allocating an additional $200 million for future buybacks.
Moreover, Mr. Cooper Group Inc. (NASDAQ:COOP)’s servicing revenue grew by 37% year-over-year, supported by a record low delinquency rate of just 1%. This combination of efficiency and a robust servicing portfolio positions Mr. Cooper Group Inc. (NASDAQ:COOP) well to capitalize on growth opportunities in the mortgage servicing sector.
Omega Advisors, Inc. has 2,860,600 shares of Mr. Cooper Group Inc. (NASDAQ:COOP), valued at $232,366,538.
Diamond Hill Select Strategy stated the following regarding Mr. Cooper Group Inc. (NASDAQ:COOP) in its Q2 2024 investor letter:
“Among our top individual contributors in Q2 were Amazon, Texas Instruments and Mr. Cooper Group Inc. (NASDAQ:COOP). Mortgage-servicing company Mr. Cooper Group is benefiting from a high interest-rate environment, which is supporting increased profitability in the mortgage-servicing business.”
While we acknowledge the potential of Mr. Cooper Group Inc. (NASDAQ:COOP), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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