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5 Predictable Stocks With a 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.

NetApp Inc. (NASDAQ:NTAP)

The company has a business predictability rank of three out of five stars and, according to the discounted cash flow calculator, a 12.89% margin of safety at $51 per share.


The data storage products provider has a market cap of $12.07 billion and an enterprise value of $10.27 billion. Over the past five years, its revenue has grown 5.1% and its earnings per share have increased 3%.

Over the last 12 months, the stock has declined 39% and is currently trading with a price-earnings ratio of 13.01. The share price has been as high as $85.43 and as low as $13.75 in the last 52 weeks. As of Friday, the stock was trading 40.69% below its 52-week high and 13.75% above its 52-week low.

With 13.91% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 2.80% and Pioneer Investments (Trades, Portfolio) with 1.35%.

Tractor Supply Co. (NASDAQ:TSCO)

The company has a four-star business predictability rank and, according to the DCF calculator, a 28.66% margin of safety at $93 per share.

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The American operator of retail farm and ranch stores has a market cap of $11.16 billion and an enterprise value of $13.77 billion. Over the past five years, its revenue has increased 11.80% and its earnings per share have grown 11.60%.

The stock has risen 4.80% over the last 12 months and shares are trading with a price-earnings ratio of 20.17 and a price-book ratio of 7.11. The price has been as high as $114.25 and as low as $78.67 in the last 52 weeks. As of Friday, the stock was trading 19.83% below its 52-week high and 16.42% above its 52-week low.

With 1.49% of outstanding shares, Pioneer Investments is the company's largest guru shareholder, followed by David Rolfe (Trades, Portfolio) with 0.63% and Simons' firm with 0.25%.

Globe Life Inc. (NYSE:GL)

The company has a three-star business predictability rank and, according to the DCF calculator, a 24% margin of safety at $94 per share.

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The life and health insurance company has an $10.20 billion market cap. Over the past five years, its revenue has grown 8.40% and its earnings per share have increased 18.40%.

Shares have gained 4.64% over the last 12 months; the stock is trading with a price-earnings ratio of 14.63 and a price-book ratio of 1.53. The price has been as high as $96.92 and as low as $69.68 in the last 52 weeks. As of Friday, the stock was trading 5.02% below its 52-week high and 32.10% above its 52-week low.

With 5.82% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons' firm with 0.22% and Richard Pzena (Trades, Portfolio) with 0.21%.

Domino's Pizza Inc. (NYSE:DPZ)

The company has a three-star business predictability rank and, according to the DCF calculator, a 5.42% margin of safety at $241.25 per share.

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The company has a market cap of $9.99 billion and an enterprise value of $13.55 billion. Over the past five years, its revenue has grown 20.10% and its earnings per share have increased 22.70%.

Shares have fallen 14% over the last 12 months; the stock is currently trading with a price-earnings ratio of 27.03. The price has been as high as $302.05 and as low as $220.90 in the last 52 weeks. As of Friday, the stock was trading 19.85% below its 52-week high and 9.60% above its 52-week low.

With 22.43% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Steve Mandel (Trades, Portfolio) with 4.82% and Ken Fisher (Trades, Portfolio) with 1.89%.

Reinsurance Group of America Inc. (NYSE:RGA)

The company has a four-star business predictability rank and, according to the DCF calculator, a 34.92% margin of safety at $153.48 per share.

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The insurance company has a $9.63 billion market cap and an enterprise value of $11.2 billion. Over the past five years, its revenue has grown 7.0% and its earnings per share have risen 21.10%.

Shares have climbed 6.53% over the past year; the stock is trading with a price-earnings ratio of 12.54 and a price-book ratio of 0.92. The price has been as high as $163.46 and as low as $127.84 in the last 52 weeks. As of Friday, the stock was trading 6.10% below its 52-week high and 20.06% above its 52-week low.

The company's largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 0.70% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.13%, Simons' firm with 0.11% and NWQ Managers (Trades, Portfolio) with 0.04%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.