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5 Undervalued Stocks With Predictable Businesses

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·5 min read
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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 June 16.

VMware

VMware Inc. (VMW) has a business predictability rank of 4 out of 5 stars and, according to the discounted cash flow calculator, a 67.96% margin of safety at an average price of $136.89 per share.


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The Dell-subsidiary and leader in virtual machines and data centers has a market cap of $57.3 billion and an enterprise value of $59.9 billion. Over the past five years, its revenue has grown 12.8%.

Over the past 12 months, the stock price has decreased 18.66% and is currently trading with a price-earnings ratio of 9.12. The share price has been as high as $206.80 and as low as $86 in the last year. As of June 16, the stock was trading 33.81% below its 52-week high and 59.17% above its 52-week low.

With 0.25% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.18% and Dodge & Cox with 0.11%.

SPAR

SPAR Group Inc. (SGRP) has a 4.5-star business predictability rank and, according to the DCF calculator, a 32.2% margin of safety at the average price of $0.80 per share.

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The supplier of merchandising and provider of marketing services has a market cap of $16 million and an enterprise value of $34 million. Over the past five years, its revenue has increased 18.40%.

The stock has gained 16.13% over the last 12 months and shares are trading with a price-earnings ratio of 7.27. The share price has been as high as $1.38 and as low as $0.55 in the last 52 weeks. As of June 16, the stock was trading 42.03% below its 52-week high and 45.45% above its 52-week low.

With 0.43% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder.

ViacomCBS

ViacomCBS Inc. (VIAC) has a 3.5-star business predictability rank and, according to the DCF calculator, an 80.18% margin of safety at an average price of $24.89 per share.

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The media conglomerate has a $15.4 billion market cap and an enterprise value of $35.3 billion. Over the past five years, its revenue has increased 22.10% and its earnings per share have grown 21.40%.

The share price has lost 47.36% over the past 12 months. The stock is trading with a price-earnings ratio of 5.62. The share price has been as high as $53.71 and as low as $10.10 in the last 52 weeks. As of June 16, the stock was trading 53.66% below its 52-week high and 146.44% above its 52-week low.

With 3.66% of outstanding shares, Seth Klarman (Trades, Portfolio)'s Baupost Group is the company's most notable shareholder, followed by Larry Robbins (Trades, Portfolio)' Glenview Capital Management with 1.51% and John Rogers (Trades, Portfolio)' Ariel Investment with 1.01%.

Simon Property Group

Simon Property Group Inc. (SPG) has a 4-star business predictability rank and, according to the DCF calculator, a 51.32% margin of safety at an average price of $74.39 per share.

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The real estate investment trust has a market cap of $22.7 billion and an enterprise value of $47.4 billion. Over the past five years, its revenue has increased 3.10% and its earnings per share have increased 9.2%.

Shares have declined 50.47% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 11.52. The share price has been as high as $184.32 and as low as $42.25 in the last 52 weeks. As of June 16, the stock was trading 59.64% below its 52-week high and 76.07% above its 52-week low.

With 0.65% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.54% and Renaissance Technologies with 0.33%.

Snap-on

Snap-on Inc. (SNA) has a 4-star business predictability rating and, according to the DCF calculator, a 50.29% margin of safety at an average price of $135.46 per share.

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The manufacturer of professional tools and software has a $7.3 billion market cap and an enterprise value of $8.3 billion. Over the past five years, its revenue has grown 3.5% and its earnings per share have climbed 11.9%.

Shares have declined 14.89% over the past year. The stock is trading with a price-earnings ratio of 11.53. The price has been as high as $174 and as low as $90.72 in the last 52 weeks. As of June 16, the stock was trading 22.15% below its 52-week high and 49.32% above its 52-week low.

With 1.81% of outstanding shares, Ariel Investment is the company's largest guru shareholder, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.77% and Richard Pzena (Trades, Portfolio) with 0.59%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 5 Energy Stocks Beating the Market

  • 5 Popular Cyclical Stocks

  • 5 Undervalued Companies With Profitable Business



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This article first appeared on GuruFocus.