Leon Cooperman’s Top Stocks for 2013

Stocks remain the best investment and stand to post "respectable" gains for 2013, Omega Advisors CEO Leon Cooperman said Wednesday on CNBC.

"Equities are in a zone of fair valuation to modest undervaluation," he said.

On "Fast Money," Cooperman revealed his top four stock picks for 2013.

  • Crocs
  • Chimera Investment
  • Qualicorp, a Brazilian health care company
  • Tetragon Financial

Cooperman's No. 5 pick was a mystery stock, he said, citing primary responsibility to his investors.

(Read More: Dennis Gartman's Top Plays for 2013 (Not Gold))

"When it doubles in year, then I'll give you the name," he said.

(Read More: What Leon Cooperman Prefers to Apple)

Cooperman also said that the Federal Reserve's monetary policy has created an environment where nothing comes close to offering returns nearly as good as stocks.

"I think the bubble is in bonds," Cooperman added. "Buying U.S. government bonds is like walking in front of a steamroller to pick up a dime."

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Cooperman shared some of his favorite companies for the coming year.

In technology, he said that Qualcomm, Google and VeriFone appeared solid, as did Motorola. "Sprint's going to be a winner in 2013," he added.

In the energy sector, Cooperman liked Sanridge Energy, Halliburton and Atlas Energy.

Cooperman also liked Freeport-McMoRan.

(Read More: Top Tech Pick for 2013: Colin Gillis)

His health care plays included Express Scripts and Merck.

Omega Advisors also owned AIG, Citigroup, JPMorgan and Wells Fargo.

"There's no shortage of cheap stocks," Cooperman said.

Trader disclosure: On Jan. 2, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long STZ; Jon Najarian is long ALXN; Jon Najarian is long CMI; Jon Najarian is long COF; Jon Najarian is long MA; Jon Najarian is short AAPL; Jon Najarian is short NFLX; Jon Najarian is short VMW; Jon Najarian is long VIX CALL SPREADS; Steve Weiss is long QCOM; Steve Weiss is long TBF; Steve Weiss is long AIG; Steve Weiss is long BAC; Steve Weiss is long WLT; Steve Weiss is long C; Steve Weiss is long JPM; Steve Weiss is long M; Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long GS; Joe Terranova is long MS; Joe Terranova is long SWN; Joe Terranova is long GLW; Joe Terranova is long DELL; Joe Terranova is long VZ; Joe Terranova is long XOM; Simon Baker is funds long IWM; Simon Baker is funds long AAPL; Simon Baker is funds long AMAT; Simon Baker is funds long BAC; Simon Baker is funds long BRCM; Simon Baker is funds long T; Simon Baker is funds long WFC; Simon Baker is funds long QCOM; Simon Baker is funds long MSFT; Simon Baker is funds long GOOG; Simon Baker is funds long CSCO; Simon Baker is funds long XLU; Simon Baker is funds long NOK; Dennis Gartman is long AUD; Dennis Gartman is long NZD; Dennis Gartman is short YEN; Dennis Gartman is long Gold in EUR/JPY Terms; Dennis Gartman is short EUR; Dennis Gartman is short YEN; Dennis Gartman is short Crude Oil; Dennis Gartman is short US 10Y Treasuries.