Tags: leon | copperman | stock | market | valued

Leon Cooperman: Stock Market Is 'Fully Valued, Not Overvalued'

By    |   Monday, 07 August 2017 03:03 PM EDT

Investing guru Leon Cooperman says he isn’t afraid of the market correction that some others insist is coming.

"The market is fully valued, but it's not overvalued," the head of Omega Advisors told CNBC.

A "correction" is commonly defined as a temporary drop of at least 10 percent adjust for an overvaluation.

Cooperman said if the market does suffer a sudden tumble, he would buy banks including Bank of America, Citigroup and JPMorgan Chase.

"We have no shortage of ideas," he said.

He also said his favorite stock now is Google parent Alphabet. "The only negative is it's owned by everybody," Cooperman said. "Who's left to buy it?" he pondered.

Cooperman also said the second-largest position in his portfolio is First Data, a financial technology provider that also is having a strong 2017 with a gain of about 28 percent.

Meanwhile, markets have been boosted in recent weeks by robust second-quarter earnings, and the strong July employment report on Friday added to the positive sentiment.

"We have strong earnings that is helping the market," Kim Forrest, senior equity research analyst at Fort Pitt Capital Group, told Reuters.

"I have seen a lot of companies exceeding their revenue growth and we also have better-than-expected global growth, which are the main drivers for equities."

Analysts, on average, expect S&P 500 earnings to have expanded 12 percent in the second quarter and project earnings up 9.3 percent for the September quarter, according to Thomson Reuters I/B/E/S.

However, the recent run-up has also sparked concerns about stretched valuations.

The S&P, which is up about 11 percent this year, is trading at 18 times expected earnings, compared to its 10-year average of 14, according to Thomson Reuters Datastream.

(Newsmax wire services contributed to this report).
 
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InvestingAnalysis
Investing guru Leon Cooperman says he isn't afraid of the market correction that some others insist is coming.
leon, copperman, stock, market, valued
290
2017-03-07
Monday, 07 August 2017 03:03 PM
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