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4 S&P 500 Stocks That Have Soared Over the Past Year

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·5 min read
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- By Sydnee Gatewood

Since the market bottomed out exactly a year ago amid the Covid-19 pandemic, conditions have begun to improve as the vaccine distribution continues.

After reaching a bottom of 18,591.93 in March of 2020, the Dow Jones Industrial Average recovered to 32,524.37 on Tuesday. Similarly, the S&P 500 Index, which fell to 2,237.4 a year ago, stands at 3,923.66 and the Nasdaq Composite has risen from 6,860.67 to 13,286.12.


4 S&P 500 Stocks That Have Soared Over the Past Year
4 S&P 500 Stocks That Have Soared Over the Past Year

As a result of the recovery, value investors may be looking for good opportunities among stocks that have outperformed the overall market over the past year.

According to the GuruFocus All-in-One Screener, a Premium feature, as of March 23, fairly valued companies in the S&P 500 that have gained at least 50% over the past 12 months and have good predictability ratings include Discover Financial Services (NYSE:DFS), BorgWarner Inc. (NYSE:BWA), Laboratory Corp. of America Holdings (NYSE:LH) and KeyCorp (NYSE:KEY).

Discover Financial Services

Having gained around 207.60% over the past year, Discover Financial (NYSE:DFS), which has a $27.84 billion market cap, was trading around $90.88 per share on Tuesday with a price-earnings ratio of 25.31, a price-book ratio of 2.84 and a price-sales ratio of 2.51.

The GF Value Line shows the stock is fairly valued currently based on historical ratios, past performance and future earnings projections.

4 S&P 500 Stocks That Have Soared Over the Past Year
4 S&P 500 Stocks That Have Soared Over the Past Year

The Riverwoods, Illinois-based financial services company has a GuruFocus financial strength rating of 3 out of 10.

Discover's profitability fared a bit better, scoring a 6 out of 10 rating on the back of returns that outperform over half of its competitors and a moderate Piotroski F-Score of 5 that indicates business conditions are stable. The company also has a predictability rank of four out of five stars. According to GuruFocus, companies with this rank return an average of 9.8% annually over a 10-year period.

Of the gurus invested in Discover Financial, PRIMECAP Management (Trades, Portfolio) has the largest stake with 1.85% of outstanding shares. Hothckis & Wiley, the Parnassus Endeavor Fund (Trades, Portfolio) and Barrow, Hanley, Mewhinney & Strauss also have significant positions in the stock.

BorgWarner

Climbing 63.76% over the past year, shares of BorgWarner (NYSE:BWA) were trading around $44.68 on Tuesday. The company has a market cap of $10.66 billion, a price-earnings ratio of 20.37, a price-book ratio of 1.66 and a price-sales ratio of 0.95.

According to the GF Value Line, the stock is currently fairly valued.

4 S&P 500 Stocks That Have Soared Over the Past Year
4 S&P 500 Stocks That Have Soared Over the Past Year

The automotive supplier, which is headquartered in Auburn Hills, Michigan, has a GuruFocus financial strength rating of 5 out of 10, driven by adequate interest coverage and an Altman Z-Score of 2.23, which suggests the company is under some pressure financially since its assets are building at a faster rate than its revenue is growing. In addition, its weighted average cost of capital outweighs its return on invested capital, indicating struggles with creating value.

BorgWarner's profitability scored an 8 out of 10 rating even though its margins are in decline. It is supported by strong returns that outperform a majority of industry peers as well as a moderate Piotroski F-Score of 4. The four-star predictability rank is on watch as a result of revenue per share declining over the past 12 months.

With a 4.15% stake, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder. Pioneer Investments (Trades, Portfolio), John Rogers (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio) also have large holdings.

Laboratory Corp. of America

Advancing 52.35% over the past year, shares of LabCorp (NYSE:LH) were trading around $238.32 on Tuesday with a $23.32 billion market cap, a price-earnings ratio of 15.12, a price-book ratio of 2.5 and a price-sales ratio of 1.67.

Based on the GF Value Line, the stock is fairly valued currently.

4 S&P 500 Stocks That Have Soared Over the Past Year
4 S&P 500 Stocks That Have Soared Over the Past Year

The Burlington, North Carolina-based company, which operates a clinical laboratory, has a GuruFocus financial strength rating of 5 out of 10. Along with adequate interest coverage, the Altman Z-Score of 3.2 indicates the company is in good standing.

LabCorp's profitability fared better, scoring a 9 out of 10 rating on the back of an expanding operating margin. The company also has strong returns, a high Piotroski F-Score of 8, which indicates business conditions are healthy, and consistent earnings and revenue growth. It also has a four-star predictability rank.

The Vanguard Health Care Fund (Trades, Portfolio) has the largest stake in LabCorp with 1.42% of outstanding shares. Other guru investors include Jana Partners (Trades, Portfolio), Rogers, Larry Robbins (Trades, Portfolio), Wallace Weitz (Trades, Portfolio), Jim Simons (Trades, Portfolio)' Renaissance Technologies, Charles Brandes (Trades, Portfolio), Pioneer and Steven Cohen (Trades, Portfolio).

KeyCorp

Up 50.47% from a year ago, shares of KeyCorp (NYSE:KEY) were trading around $19.26 on Tuesday with a market cap of $18.66 billion, a price-earnings ratio of 15.17, a price-book ratio of 1.17 and a price-sales ratio of 2.8.

The GF Value Line shows the stock is fairly valued currently.

4 S&P 500 Stocks That Have Soared Over the Past Year
4 S&P 500 Stocks That Have Soared Over the Past Year

Headquartered in Cleveland, the regional bank has a GuruFocus profitability rank of 2 out of 10 as a result of assets building up at a faster rate than revenue is growing.

The company's profitability scored a 5 out of 10 rating, driven by returns that outperform around half of its competitors as well as a moderate Piotroski F-Score of 6 and consistent earnings and revenue growth. KeyCorp also has a three-star predictability rank. GuruFocus says companies with this rank return an average of 8.2% annually.

With a 0.43% stake, Richard Pzena (Trades, Portfolio) is KeyCorp's largest guru shareholder. Pioneer, Ray Dalio (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Grantham, Mario Gabelli (Trades, Portfolio) and Lee Ainslie (Trades, Portfolio) also own the stock.

Disclosure: No positions.

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This article first appeared on GuruFocus.