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6 Guru Stocks Beating the Market

According to the GuruFocus All-in-One Screener, the following Guru-owned stocks have outperformed the S&P 500 Index over the past 12 months.

TransDigm Group Inc.

TransDigm Group Inc. (TDG) has a market cap of $30.39 billion. It has outperformed the S&P 500 by 54% over the past year.


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Shares are trading with a price-earnings ratio of 40.98. According to the discounted cash flow calculator, the stock is overpriced by 50% at $570. As of Friday, the price was 83.04% above the 52-week low and 1.89% below the 52-week high.

The company, which provides products for electronic, fluid, power and mechanical motion control, has a profitability and growth rating of 9 out of 10. The return on assets of 5.83% is outperforming 72% of companies in the aerospace and defense industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.09 is below the industry median of 0.43.

Chase Coleman (Trades, Portfolio)'s Tiger Global Management is the company's largest guru shareholder with 3.87% of outstanding shares, followed by Steve Mandel (Trades, Portfolio)'s Lone Pine Capital with 2.41% and PRIMECAP Management (Trades, Portfolio) with 0.69%.

Paychex Inc.

With a market cap of $30.33 billion, Paychex Inc. (PAYX) has outperformed the S&P 500 by 7.57% over the past 12 months.

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Shares are trading with a price-earnings ratio of 29.02. According to the DCF calculator, the stock is overpriced by 124% at $85. As of Friday, the price was 38.83% above the 52-week low and 3.73% below the 52-week high.

The company, which operates in the payroll outsourcing industry, has a profitability and growth rating of 10 out of 10. The return on equity of 42.04% and return on assets of 12.64% are outperforming 88% of companies in the business services industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.66 is below the industry median of 0.72.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.17% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.11% and Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.09%.

Barrick Gold Corp

Barrick Gold Corp. (GOLD) has a market cap of $30.23 billion. It has outperformed the S&P 500 by 8.82% over the past year.

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Shares are trading with a price-earnings ratio of 38.39. According to the DCF calculator, the stock is overpriced by 255% at $17.50. As of Friday, the price was 46.61% above the 52-week low and 15.84% below the 52-week high.

The gold producer has a profitability and growth rating of 6 out of 10. The return on equity of 10.04% and return on assets of 4.38% are outperforming 89% of companies in the metals and mining industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.43 is far below the industry median of 32.86.

The company's largest guru shareholder is First Eagle Investment (Trades, Portfolio) with 2.70% of outstanding shares, followed by Simons' firm with 0.85% and Pioneer Investments (Trades, Portfolio) with 0.25%.

Atlassian Corporation PLC

With a market cap of $30.12 billion, Atlassian Corporation PLC (TEAM) has outperformed the S&P 500 by 25.89% over the past 12 months.

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Shares are trading with a forward price-earnings ratio of 115. As of Friday, the price was 17.65% above the 52-week low and 63.28% below the 52-week high.

The company has a profitability and growth rating of 4 out of 10. The return on equity of -46.73% and return on assets of -11.31% are underperforming 83% of companies in the software industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 1.55 is below the industry median of 2.55.

Simons' firm is the company's largest guru shareholder with 2.23% of outstanding shares, followed by Sands Capital Management's Frank Sands (Trades, Portfolio) with 2.17%, Steve Mandel (Trades, Portfolio)'s Lone Pine Capital with 0.85% and Coleman with 0.25%.

Southern Copper Corp

Southern Copper Corp. (SCCO) has a market cap of $31.87 billion. It has outperformed the S&P 500 by 5.68% over the past 12 months.

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Shares are trading with a price-earnings ratio of 21.69. According to the DCF calculator, the stock is overpriced by 91% at $41 per share. As of Friday, the price was 33.78% above the 52-week low and 8.51% below the 52-week high.

The copper producer has a profitability and growth rating of 8 out of 10. The return on equity of 22.08% and return on assets of 9.67% are outperforming 93% of companies in the metals and mining industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.24 is below the industry median of 32.86.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.52% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.03%, Jeremy Grantham (Trades, Portfolio)'s GMO LLC with 0.02% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.01%.

First Data Corp

With a market cap of $29.97 billion, First Data Corp. (FDC) has outperformed the S&P 500 by 17.89% over the past 12 months.

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Shares are trading with a price-earnings ratio of 30.47. According to the DCF calculator, the stock is overpriced by 184% at $31.69 per share. As of Friday, the price was 43.11% above the 52-week low and 11.75% below the 52-week high.

The e-commerce solutions provider has a profitability and growth rating of 4 out of 10. While the return on equity of 24.16% is outperforming in the business services sector, return on assets of 2.18% is underperforming 56% of competitors. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.72.

Disclosure: I do not own any of the stocks mentioned.

Read more here:

  • 6 Stocks With Low Price-Earnings Ratios
  • 5 Guru Stocks Trading Below Peter Lynch Value
  • 6 Companies With High Dividend Yields



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This article first appeared on GuruFocus.