5 Guru Stocks With Predictable Businesses
According to the GuruFocus All-in-One Screener, the following companies have high business predictability ratings and a wide margin of safety.
Walgreens Boots Alliance Inc. (NASDAQ:WBA)
The company has a three-star business predictability rank (out of five) and, according to the discounted cash flow calculator, a 20% margin of safety at $54.32 per share.
The drugstore chain has a market cap of $49.06 billion and an enterprise value of $66.47 billion. Over the past five years, its revenue has grown 11.70% and its earnings per share have increased 15.50%.
Over the last 12 months, the stock has declined 24% and is currently trading with a price-earnings ratio of 10.65. The share price has been as high as $86.31 and as low as $49.03 in the last 52 weeks. As of Wednesday, the stock was trading 37.06% below its 52-week high and 10.79% above its 52-week low.
With 0.23% of outstanding shares, Tom Gayner (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.19% and the Smead Value Fund (Trades, Portfolio) with 0.10%.
Biogen Inc. (NASDAQ:BIIB)
The company has a five-star business predictability rank and, according to the DCF calculator, a 68% margin of safety at $237 per share.
The biopharmaceutical company has a market cap of $44.26 billion and an enterprise value of $47.68 billion. Over the past five years, its revenue has increased 11% and its earnings per share have grown 15.60%.
The stock has fallen 29% over the last 12 months and shares are trading with a price-earnings ratio of 8.93 and a price-book ratio of 3.65. The price has been as high as $358.41 and as low as $215.77 in the last 52 weeks. As of Wednesday, the stock was trading 33.05% below its 52-week high and 11.21% above its 52-week low.
With 7.38% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 11.41% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 1.26%.
Aflac Inc. (NYSE:AFL)
The company has a 4.5-star business predictability rank and, according to the DCF calculator, a 21% margin of safety at $52.42 per share.
The company, which provides health insurance and life insurance, has an $38.76 billion market cap. Over the past five years, its revenue has grown 2.40% and its earnings per share have increased 7%.
Shares have gained 9.75% over the last 12 months; the stock is trading with a price-earnings ratio of 12.77 and a price-book ratio of 1.40. The price has been as high as $57.18 and as low as $41.45 in the last 52 weeks. As of Wednesday, the stock was trading 8.45% below its 52-week high and 26.30% above its 52-week low.
With 0.21% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by the Smead Value Fund with 0.15% Pioneer Investments with 0.08%.
Baidu Inc. (NASDAQ:BIDU)
The company has a three-star business predictability rank and, according to the DCF calculator, a 48% margin of safety at $98 per share.
The Chinese search engine has a market cap of $35.68 billion and an enterprise value of $28.31 billion. Over the past five years, its revenue has grown 20.90% and its earnings per share have increased 11.50%.
Shares have fallen 54% over the last 12 months; the stock is currently trading with a price-earnings ratio of 15.20 and a price-book ratio of 1.49. The price has been as high as $232.29 and as low as $93.39 in the last 52 weeks. As of Wednesday, the stock was trading 55.99% below its 52-week high and 9.62% above its 52-week low.
With 2.37% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio) with 1.52% and David Herro (Trades, Portfolio) with 1.01%.
NetEase Inc. (NASDAQ:NTES)
The company has a five-star business predictability rank and, according to the DCF calculator, a 5.47% margin of safety at $263.10 per share.
The Chinese company, which provides online content, has a $34.13 billion market cap and an enterprise value of $28.14 billion. Over the past five years, its revenue has grown 49.70% and its earnings per share have risen 11.20%.
Shares have climbed 23.73% over the past year; the stock is currently trading with a price-earnings ratio of 26.91 and a price-book ratio of 4.69. The price has been as high as $289.68 and as low as $188.05 in the last 52 weeks. As of Wednesday, the stock was trading 7.93% below its 52-week high and 41.82% above its 52-week low.
The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.68% of outstanding shares, followed by Philippe Laffont (Trades, Portfolio) with 0.64%, Pioneer Investments (Trades, Portfolio) with 0.28%, Simons' firm with 0.10% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.04%.
Disclosure: I do not own any stocks mentioned.
Read more here:
6 Stocks Trading With a Low Price-Earnings Ratio
6 Undervalued Stocks Boosting Book Value
6 Guru Stocks Beating the Market
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This article first appeared on GuruFocus.
