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6 Guru Stocks Outperforming 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 third quarter.


Brown & Brown Inc. ( BRO ) has a market cap of $8.03 billion. It has outperformed the S&P 500 Index by 14.8% over the past 12 months.

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The stock is trading with a price-book ratio of 2.68. According to the DCF calculator, the stock is overpriced by 42% at $28.31 per share. The share price is 16.35% above its 52-week low and 10.24% below its 52-week high.

The insurance agent and broker company has a profitability and growth rating of 9 out of 10. The return on equity of 16.44% and return on assets of 7.57% are outperforming 75% of the companies in the Global Insurance Brokers industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.51 is below the industry median of 5.11.

The company's largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 4.08% of outstanding shares, followed by the Jim Simons' (Trades, Portfolio) Renaissance Technologies with 1.8%, Diamond Hill Capital (Trades, Portfolio) with 0.75% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.05%.

With a market cap of $48.78 billion, Banco Santander (Brasil) ( BSBR ) has outperformed the S&P 500 by 29.5% over the past 12 months.

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The stock is trading with a price-earnings ratio of 16.58. According to the DCF calculator, the stock is overpriced by 260% at $13.14 per share. The share price is currently 75.42% above its 52-week low and 3.95% below its 52- week high.

The multiple service bank, has a profitability and growth rating of 4 out of 10. The return on equity of 12.73% and return of assets of 1.68% are outperforming 72% of companies in the Global Banks - Regional - Latin America industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 1.58 is above the industry median of 1.22.

Simons' firm is the company's largest guru shareholder with 0.02% of outstanding shares.

Boston Scientific Corp. ( BSX ) has a market cap of $51.51 billion. It has outperformed the S&P 500 by 40% over the past 12 months.

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The stock is trading with a price-earnings ratio of 79.27. According to the DCF calculator, the stock is undervalued with a 641% of margin of safety at $37.19 per share. The share price is currently 48.80% above its 52-week low and 5.53% below its 52-week high.

The company, which develops and manufactures medical devices , has a profitability and growth rating of 7 out of 10. The return on equity of 8.89% and return of assets of 3.46% are outperforming 51% of companies in the Global Medical Devices industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.03 is below the industry median of 2.32.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 3.24% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 2.27% and Andreas Halvorsen (Trades, Portfolio)'s Viking Global Investors with 0.23%.

With a market cap of $11.38 billion, Burlington Stores Inc. ( BURL ) have outperformed the S&P 500 by 39.9% over the past 12 months.

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The stock is trading with a price-earnings ratio of 24.78. According to the DCF calculator, the stock is overpriced by 132% at $168 per share. The share price is currently 53.48% above its 52-week low and 6.67% below its 52-week high.

The company, which retails apparel at low prices, has a profitability and growth rating of 8 out of 10. While the return on equity of 542.50% is underperforming the sector, the return on assets of 16.11% is outperforming 93% of companies in the Global Discount Stores industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.08 is below the industry median of 0.55.

With 0.57% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Cohen with 0.18%, Pioneer Investments (Trades, Portfolio) with 0.18% and Stanley Druckenmiller (Trades, Portfolio) with 0.13%.

Blackstone Group LP ( BX ) has a market cap of $39.18 billion. It has outperformed the S&P 500 by 6.6% over the past 12 months.

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The stock is trading with a price-book ratio of 5.61. According to the DCF calculator, the stock is overpriced by 12% at $32.59 per share. The share price is currently 21.24% above its 52-week low and 19.73% below its 52-week high.

The alternative asset management company, has a profitability and growth rating of 5 out of 10. The return on equity of 24.82% and return on assets of 6% are outperforming 64% of companies in the Global Asset Management industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.19 is below the industry median of 85.28.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.27% of outstanding shares, followed by Tom Gayner (Trades, Portfolio) with 0.09%, John Rogers (Trades, Portfolio) with 0.09%.

With a market cap of $18.65 billion, Boston Properties Inc. ( BXP ) has outperformed the S&P 500 Index by 6.7% over the past 12 months.

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The stock is trading with a price-earnings ratio of 36.21. According to the DCF calculator, the stock is overpriced by 334% at $121 per share. The share price is currently 12.40% above its 52-week low and 8.74% below its 52-week high.

The company, which develops and manages office properties in the United States, has a profitability and growth rating of 7 out of 10. While the return on equity of 9.01% is outperforming the sector, the return on assets of 2.74% is underperforming 64% of companies in the Global REIT - Office industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.06.

With 0.17% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Chris Davis (Trades, Portfolio) with 0.09%, the Simons' firm with 0.04% and Ron Baron (Trades, Portfolio) with 0.02%.

Disclosure: I do not own any stocks mentioned.

This article first appeared on GuruFocus.