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5 Predictable Stocks With an Attractive Margin of Safety

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

Service Corp International

Service Corp International (NYSE:SCI) has a business predictability rank of 4 out of 5 stars and, according to the discounted cash flow calculator, a 23.71% margin of safety at an average price of 46.50 per share.


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The provider of funeral and cemetery services and products has a market cap of $8.48 billion and an enterprise value of $11.87 billion. Over the past five years, its revenue has grown 6.90% and its earnings per share have increased 32.50%.

Over the last 12 months, the stock has risen 7.79% and is currently trading with a price-earnings ratio of 20.86. The share price has been as high as $48.69 and as low as $37.52 in the last 52 weeks. As of Tuesday, the stock was trading 4.49% below its 52-week high and 23.96% above its 52-week low.

With 0.37% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.16% and Jeremy Grantham (Trades, Portfolio)'s GMO LLC with 0.02%.

Companhia De Saneamento Basico Do Estado De Sao Paolo

Companhia De Saneamento Basico Do Estado De Sao Paolo (NYSE:SBS) has a 3.5-star business predictability rank and, according to the DCF calculator, a 13.74% margin of safety at an average price of $12.24 per share.

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The Brazilian water and waste management company has a market cap of $8.37 billion and an enterprise value of $10.83 billion. Over the past five years, its revenue has increased 8.10% and its earnings per share have grown 21.30%.

The stock has risen 66% over the last 12 months and shares are trading with a price-earnings ratio of 10.71 and a price-book ratio of 1.65. The price has been as high as $14.60 and as low as $6.97 in the last 52 weeks. As of Tuesday, the stock was trading 16.14% below its 52-week high and 75.86% above its 52-week low.

With 1.08% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments with 0.17%.

F5 Networks Inc.

F5 Networks Inc. (NASDAQ:FFIV) has a 3.5-star business predictability rank and, according to the DCF calculator, a 38% margin of safety at an average price of $135.67 per share.

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The company provides application delivery controller equipment and has an $8.16 billion market cap. Over the past five years, its revenue has grown 12.90% and its earnings per share have increased 15.80%.

Shares have lost 18% over the last 12 months. The stock is trading with a price-earnings ratio of 17.62 and a price-book ratio of 5.02. The price has been as high as $190.08 and as low as $121.36 in the last 52 weeks. As of Tuesday, the stock was trading 28.62% below its 52-week high and 11.79% above its 52-week low.

With 0.24% of outstanding shares, Ray Dalio (Trades, Portfolio)'s Bridgewater Associates is the most notable shareholder, followed by Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.17%.

BorgWarner Inc.

BorgWarner Inc. (NYSE:BWA) has a 3.5-star business predictability rank and, according to the DCF calculator, a 5.54% margin of safety at an average price of $37.2 per share.

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The company operates in the Autos industry and has a market cap of $7.68 billion and an enterprise value of $9.18 billion. Over the past five years, its revenue has grown 9.40% and its earnings per share have increased 4.70%.

Shares have fallen 2% over the last 12 months. The stock is currently trading with a price-earnings ratio of 10.11 and price-book ratio of 1.76. The price has been as high as $44.78 and as low as $30.71 in the last 52 weeks. As of Tuesday, the stock was trading 16.93% below its 52-week high and 21.13% above its 52-week low.

With 4.32% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.93% and John Rogers (Trades, Portfolio) with 0.85%.

Amerco Inc.

Amerco Inc. (NASDAQ:UHAL) has a 3.5-star business predictability rank and, according to the DCF calculator, a 28.30% margin of safety at an average price of $382 per share.

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The company provides rental trucks to household movers. It has a $7.58 billion market cap and an enterprise value of $9.17 billion. Over the past five years, its revenue has grown 5.70% and its earnings per share have risen 7.60%.

Shares have climbed 15.21% over the past year. The stock is trading with a price-earnings ratio of 20.41 and a price-book ratio of 1.96. The price has been as high as $403.92 and as low as $22.27 in the last 52 weeks. As of Tuesday, the stock was trading 4.34% below its 52-week high and 22.27% above its 52-week low.

The company's largest guru shareholder is Abrams Capital Management's David Abrams (Trades, Portfolio) with 2.86% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.16% and HOTCHKIS & WILEY with 1.07%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.