5 Predictable Stocks With a Margin of Safety
- By Tiziano Frateschi
According to the GuruFocus All-in-One Screener, a Premium feature, the following companies have high business predictability ratings and wide margins of safety as of May 3.
Magellan Midstream Partners
Magellan Midstream Partners LP (MMP) has a three-star business predictability rank and, according to the discounted cash flow calculator, a 46.24% margin of safety at an average price of $46.33 per share.
The U.S. company, which operates pipelines and storage terminals, has a market cap of $10.34 billion and an enterprise value of $15.47 billion. Over the past five years, its revenue and earnings per share have increased 3.70% and 3.40%, respectively.
Over the past 12 months, the stock has risen 20.67% and is currently trading with a price-earnings ratio of 12.83. The share price has been as high as $49.91 and as low as $32.61 in the last year. As of May 3, the stock was trading 7.17% below its 52-week high and 42.07% above its 52-week low.
The largest guru shareholder of the company is First Eagle Investment (Trades, Portfolio) with 0.29% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 0.13% and Louis Moore Bacon (Trades, Portfolio) with 0.12%.
Reliance Steel & Aluminum
Reliance Steel & Aluminum Co. (RS) has a four-star business predictability rank and, according to the DCF calculator, a 10.07% margin of safety at an average price of $160.02 per share.
The U.S. company, which provides metal processing and inventory management services, has a market cap of $10.19 billion. Over the past five years, its revenue has grown 1.70% and its earnings per share have climbed 13.10%.
The stock has climbed 80.21% over the past 12 months and shares are trading with a price-earnings ratio of 18.02. The share price has been as high as $160.88 and as low as $80.02 in the last 52 weeks. As of May 3, the stock was trading 0.53% below its 52-week high and 99.53% above its 52-week low.
The largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 1.11% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.75% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.17%.
Amdocs
Amdocs Ltd. (DOX) has a four-star business predictability rank and, according to the DCF calculator, a 8.73% margin of safety at an average price of $77.20 per share.
The company, which is a provider of software and services, has a market cap of $10.09 billion and an enterprise value of $9.65 billion. Over the past five years, its revenue has increased 2.90% and its earnings per share have risen 5.50%.
The share price has increased 24.47% over the past 12 months. The stock is trading with a price-earnings ratio of 15.05. The share price has been as high as $82.38 and as low as $54.68 in the last 52 weeks. As of May 3, the stock was trading 6.29% below its 52-week high and 41.19% above its 52-week low.
The largest guru shareholders of the company are John Rogers (Trades, Portfolio) with 0.79% of outstanding shares, Steven Cohen (Trades, Portfolio) with 0.42%, NWQ Managers (Trades, Portfolio) with 0.38% and Charles Brandes (Trades, Portfolio) with 0.33%.
Service Corp
Service Corp. International (SCI) has a four-star business predictability rank and, according to the DCF calculator, a 56.46% margin of safety at an average price of $53.19 per share.
The company, which provides funeral and cemetery services and products, has a market cap of $9 billion. Over the past five years, its revenue has increased 3% and its earnings per share have risen 21.50%.
Shares have increased 45.49% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 18.34. The share price has been as high as $54.67 and as low as $33.93 in the last 52 weeks. As of May 3, the stock was trading 2.71% below its 52-week high and 56.76% above its 52-week low.
The company's largest guru shareholder is BAILLIE GIFFORD & CO with 6.27% of outstanding shares, followed by Simons' firm with 0.28%, Pioneer Investments (Trades, Portfolio) with 0.22% and Paul Tudor Jones (Trades, Portfolio) with 0.07%.
Cboe Global Markets
Cboe Global Markets Inc. (CBOE) has a four-star business predictability rank and, according to the DCF calculator, a 7.53% margin of safety at an average price of $103.98 per share.
The U.S. options exchange has a market cap of $11.13 billion and an enterprise value of $12.13 billion. Over the past five years, its revenue has climbed by 41.80% and earnings per share have increased and 11.90%.
Shares have risen 8.71% compared to 12 months ago. The share price has been as high as $107.11 and as low as $77.63 in the last 52 weeks. As of May 3, the stock was trading 2.93% below its 52-week high and 33.94% above its 52-week low.
The largest guru shareholders of the company are Simons' firm with 2.86% of outstanding shares, Murray Stahl (Trades, Portfolio) with 0.41% and Pioneer Investments (Trades, Portfolio) with 0.17%.
Disclosure: I do not own any stocks mentioned.
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This article first appeared on GuruFocus.
