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4 Predictable Guru Stocks

- By Tiziano Frateschi

According to the GuruFocus All-in-One Screener, the following companies have high business predictability ratings and a wide margin of safety.

Bausch Health Companies Inc. (BHC)

The company has a 3.5-star business predictability rank and, according to the discounted cash flow calculator, a 75.40% margin of safety at $21.11 per share.


The specialty pharmaceutical company has a market cap of $7.4 billion. Over the last five years, its revenue has grown 10.3%.

The stock has fallen 15.59% over the last 12 months and is currently trading with a forward price-earnings ratio of 5.09 and a price-book ratio of 2.80. The share price has been as high as $28.45 and as low as $17.20 in the last 52 weeks. As of Wednesday, the stock was trading 26.05% below its 52-week high and 22.32% above its 52-week low.

With 13.23% of outstanding shares, John Paulson (Trades, Portfolio) is the company's largest guru shareholder, followed by Jeff Ubben (Trades, Portfolio)'s ValueAct Holdings with 11.45% and Larry Robbins (Trades, Portfolio) with 5.91%.

Selective Insurance Group Inc. (SIGI)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 23.22% margin of safety at $73.77 per share.

The New Jersey-based insurance company has a $4.38 billion market cap. Over the last five years, its revenue has increased 6.4% and its earnings per share have grown 7.9%.

The stock has risen 25% over the last 12 months; share are currently trading with a price-earnings ratio of 20.02 and a price-book ratio of 2.29. The price has been as high as $74.41 and as low as $54.70 in the last 52 weeks. The stock is currently trading 0.79% below its 52-week high and 34.96% above its 52-week low.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.10% of outstanding shares.

Shoe Carnival Inc. (SCVL)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 34.5% margin of safety at $24.34 per share.

The footwear retailer has a market cap of $367 million. Over the last five years, its revenue has grown 3% and its earnings per share have increased 7.9%.

Shares have tanked 24% over the last 12 months; they are currently trading with a price-earnings ratio of 9.61 and a price-book ratio of 1.29. The price has been as high as $45 and as low as $23.98 in the last 52 weeks. The stock is currently trading 29.21% below its 52-week high and 1.08% above its 52-week low.

With 4.16% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 1.65% and Simons' firm with 0.18%.

Ross Stores Inc. (ROST)

The company has a 4.5-star business predictability rank and, according to the DCF calculator, a 19.56% margin of safety at $95.41 per share.

The discount retail chain has a $35.05 billion market cap. Over the last five years, its revenue has grown 8.1% and its earnings per share have risen 16.90%.

The stock has gained 12% over the last 12 months; shares are currently trading with a price-earnings ratio of 22.19 and a price-book ratio of 10.68. The price has been as high as $104.35 and as low as $75.91 in the last 52 weeks. The stock is currently trading 8.56% below its 52-week high and 25.70% above its 52-week low.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 3.38% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.24% and Daniel Loeb (Trades, Portfolio) with 0.44%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 5 Stocks Boosting Book Value
  • 5 Companies Boosting Earnings
  • 6 Underperforming Stocks in Gurus' Portfolios



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This article first appeared on GuruFocus.