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5 Stocks Beating the Market

- By Tiziano Frateschi

According to the GuruFocus All-in-One Guru Screener, the following stocks have outperformed the Standard & Poor's 500 Index over the past 12 months and were bought by gurus during the last quarter.


Icahn Enterprises LP (IEP) has a market cap of $12.48 billion. It has outperformed the S&P 500 Index by 17.8% over the past 12 months.

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The stock is trading with a price-book ratio of 2.30. According to the discounted cash flow calculator, the stock is undervalued with a 4% margin of safety at $68.50 per share. As of Friday, the stock price was 27.94% above its 52-week low and 20.30% below its 52-week high.

The company provides diversified business services in the U.S. It has a profitability and growth rating of 5 out of 10. The return on equity of 26.86% and return on assets of 4.25% are outperforming 81% of companies in the Global Conglomerates industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.22 is below the industry median of 1.66.

The company's largest shareholder among the gurus is Carl Icahn (Trades, Portfolio) with 91.33% of outstanding shares followed by Murray Stahl (Trades, Portfolio) with 1.24%.

With a market cap of $11.91 billion, IDEX Corp. (IEX) has outperformed the S&P 500 Index by 9.7% over the past 12 months.

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The stock is trading with a price-book ratio of 6. According to the DCF calculator, the stock is overpriced by 95% at $155.28 per share. The stock price is currently 27.11% above its 52-week low and 2.52% below its 52- week high.

The company is a producer of diversified industrial products. It has a profitability and growth rating of 8 out of 10. The return on equity of 20.34% and return on assets of 11.34% are outperforming 88% of companies in the Global Diversified Industrials industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.53 is below the industry median of 0.89.

PRIMECAP Management (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.92% of outstanding shares followed by Mario Gabelli (Trades, Portfolio) with 0.65 and Ron Baron (Trades, Portfolio) with 0.59%.

InterContinental Hotels Group PLC ADR (IHG) has a market cap of $11.61 billion. It has outperformed the S&P 500 Index by 5.7% over the past 12 months.

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The stock is trading with a price-earnings ratio of 21.03. According to the DCF calculator, the stock is overpriced by 25% at $6.93 per share. The stock price is currently 21.96% above its 52-week low and 12.23% below its 52-week high.

The company manages and leases hotels and resorts. It has a profitability and growth rating of 8 out of 10. The return on assets of 18.09% is outperforming 95% of companies in the Global Lodging industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.11 is below the industry median of 0.71.

The company's largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.2% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.03%.

With a market cap of $51.91 billion, Illumina Inc. (ILMN) has outperformed the S&P 500 Index by 48.8% over the past 12 months.

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The stock is trading with a price-book ratio of 15.90. According to the DCF calculator, the stock is overpriced by 648% at $353 per share. The stock price is currently 79.76% above its 52-week low and 1.57% below its 52-week high.

The company operates in life science tools and machines that analyze genetic material. It has a profitability and growth rating of 9 out of 10. The return on equity of 22.22% and return on assets of 12.20% are outperforming 92% of companies in the Global Diagnostics and Research industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.86 is below the industry median of 3.52.

Frank Sands (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.91% of outstanding shares followed by Spiros Segalas (Trades, Portfolio) with 1.01% and Vanguard Health Care Fund (Trades, Portfolio) with 0.83%.

Infosys Ltd. ADR (INFY) has a market cap of $44.49 billion. It has outperformed the S&P 500 Index by 175.9% over the past 12 months.

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The stock is trading with a forward price-book ratio of 4.93. According to the DCF calculator, the stock is overpriced by 5% at $10.32 per share. The stock price is currently 51.52% above its 52-week low.

The company supplies consulting and IT services. It has a profitability and growth rating of 8 out of 10. The return on equity of 23.87% and return on assets of 19.42% are outperforming 87% of companies in the Global Information Technology Services industry. Its financial strength is rated 9 out of 10 with no debt.

The company's largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 0.99% of outstanding shares followed by Yacktman Asset Management (Trades, Portfolio) with 0.27% and Howard Marks (Trades, Portfolio) with 0.18%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

This article first appeared on GuruFocus.