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6 Cheap Stocks With High Business Predictability

- By Tiziano Frateschi

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

Flanigan's Enterprises Inc. (BDL)


The company has a business predictability rating of five out of five stars and, according to the discounted cash flow calculator, a 20% margin of safety at $26.1 per share.

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The company operates as a chain of small cocktail lounges liquor stores. It has a market cap of $48.51 million. Over the last five years, its revenue has grown 7.10% and earnings per shares have grown by 16.50%.

The stock has climbed 18% over the last 12 months and is currently trading with a price-earnings ratio of 13.73 and a price-book ratio of 1.41. The price has been as high as $29.00 and as low as $20.60 in the last 52 weeks. As of Monday, it was 10% below its 52-week high and 26.70% above its 52-week low.

The company's largest guru shareholder is Jim Simons' (Trades, Portfolio) Renaissance Technologies with 2.76% of outstanding shares.

Intercontinental Exchange Inc. (ICE)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, a 20% margin of safety at $78.93 per share.

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The exchanges operator has a market cap of $44.96 billion. Over the last five years, its revenue has increased 23.50% and its earnings per share have grown 28.80%.

The stock has risen 11% over the last 12 months and is currently trading with a price-earnings ratio of 17.86 and a price-book ratio of 2.68. The price has been as high as $82.65 and as low as $66.92 in the last 52 weeks. As of Monday, it is 4.50% below its 52-week high and 17.95% above its 52-week low.

With 1.4% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder followed by First Eagle Investment (Trades, Portfolio) with 0.06%, John Rogers (Trades, Portfolio) with 0.05% and Frank Sands (Trades, Portfolio) with 0.03%.

Chase Corp. (CCF)

The company has a 3.5-star business predictability rating and, according to the DCF calculator, a 19% margin of safety at $103 per share.

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The company which provides industrial protective materials, has a $963.91 million market cap. Over the last five years, its revenue has grown 4.20% and its earnings per share have grown 18.70%.

The stock has fallen 13% over the last 12 months; it is currently trading with a price-earnings ratio of 22.49 and a price-book ratio of 3.91. The price has been as high as $131.70 and as low as $95 in the last 52 weeks. It is currently 22.16% below its 52-week high and 7.91% above its 52-week low.

The company's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 4.02% of outstanding shares, followed by Simons' firm with 3.76%.

Renishaw PLC (RNSHY)

The company has a 3.5-star business predictability rating and, according to the DCF calculator, a 30% margin of safety at $24.3 per share.

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The company, which manufactures and sells precision metrology and inspection equipment, has a market cap of $3.54 billion. Over the last five years, its revenue has grown 11.90% and its earnings per share have climbed 9.10%.

The stock was stable over the last 12 months; it is currently trading with a price-earnings ratio of 20.79 and price-book ratio of 5.04.

TransDigm Group Inc. (TDG)

The company has a five-star business predictability rating and, according to the DCF calculator, a 18% margin of safety at $345.79 per share.

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The designer of engineered aircraft components has a market cap of $18.24 billion. Over the last five years, its revenue has grown 14.70% and its earnings per share have increased 44.30%.

The stock has risen 28% over the last 12 months; it is currently trading with a price-earnings ratio of 21.35. The price has been as high as $377.67 and as low as $265.29 in the last 52 weeks. It is currently 8.44% below its 52-week high and 30.34% above its 52-week low.

The company's largest guru shareholder is Chase Coleman (Trades, Portfolio) with 2.5% of outstanding shares, followed by Steve Mandel (Trades, Portfolio) with 3.34%, Ron Baron (Trades, Portfolio) with 0.66% and PRIMECAP Management (Trades, Portfolio) with 0.4%.

Ulta Beauty Inc. (ULTA)

The company has a five-star business predictability rating and, according to the DCF calculator, a 14% margin of safety at $251.1 per share.

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The beauty retailer has a market cap of $14.89 billion. Over the last five years, its revenue has grown 22.60% and its earnings per share have climbed 27.30%.

The stock has risen 17% over the last 12 months; it is currently trading with a price-earnings ratio of 23.42 and a price-book ratio of 8.13. The price has been as high as $322.49 and as low as $191.70 in the last 52 weeks. It is currently 22.14% below its 52-week high and 30.99% above its 52-week low.

With 0.77% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 0.47% and Ray Dalio (Trades, Portfolio) with 0.29%.

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

This article first appeared on GuruFocus.