- By James Li
According to GuruFocus Baskets statistics, the six most-popular stocks placed in GuruFocus users' Halloween candy baskets as of Friday are Intel Corp. (NASDAQ:INTC), Biogen Inc. (NASDAQ:BIIB), Apple Inc. (NASDAQ:AAPL), Facebook Inc. (NASDAQ:FB), Simon Property Group Inc. (NYSE:SPG) and Alibaba Group Holding Ltd. (NYSE:BABA).
The GuruFocus Baskets feature allows users to place a stock into one of several virtual baskets: buying, considering, researching and not interested. The virtual baskets follow Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)'s theory of achieving higher returns by investing only within one's "circle of competence."
The intrinsic value of INTC
Peter Lynch Chart of INTC
Eighty GuruFocus users said they have bought shares of Intel, the most-voted stock in the "buying" virtual basket.
GuruFocus ranks the Santa Clara, California-based semiconductor giant's profitability and valuation 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a four-star business predictability rank, a price-earnings ratio near a five-year low and an operating margin that has increased approximately 4.1% per year on average over the past five years and is outperforming 95.68% of global competitors.
GuruFocus labels Intel's stock as modestly undervalued based on a price-to-GF Value ratio of 0.70.
Gurus with large holdings in Intel include Ken Fisher (Trades, Portfolio)'s Fisher Asset Management and Pioneer Investments (Trades, Portfolio).
Biogen ranks second on the list of "buying" stocks with 38 user votes.
GuruFocus ranks the Cambridge, Massachusetts-based drug manufacturer's profitability 10 out of 10 on several positive investing signs, which include a five-star business predictability rank and an operating margin that has increased approximately 2.1% per year over the past five years and is outperforming over 98% of global competitors.
Biogen's valuation ranks 10 out of 10 on the back of price-earnings and price-sales ratios near 10-year lows, with price-earnings ratios outperforming 91.67% of global competitors. Additionally, the stock is modestly undervalued based on its price-to-GF Value ratio of 0.70.
Apple ranks third on the list with 24 users buying shares.
GuruFocus ranks the Cupertino, California-based tech giant's profitability 10 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and a high Piotroski F-score of 7. Despite this, Apple is significantly overvalued based on its price-to-GF Value ratio of 1.73 and GuruFocus valuation rank of 1 out of 10.
Facebook ranks fourth on the list with 23 users buying shares.
GuruFocus ranks the Menlo Park, California-based social media giant's financial strength and profitability 9 out of 10 on several positive investing signs, which include a double-digit Altman Z-score, an interest-coverage ratio that outperforms over 80% of global competitors and an operating margin that is outperforming over 92% of global interactive media companies.
Simon Property Group
Simon Property Group ranks fifth on the list with 22 users buying shares.
The Indianapolis-based REIT owns and operates over 200 shopping malls and premium outlets. GuruFocus ranks Simon Property Group's profitability 8 out of 10, driven by a four-star business predictability rank and returns that are outperforming over 82% of global competitors.
Despite high profitability and a price-to-GF Value ratio of just 0.48, Simon Property Group is a possible value trap based on the company's low financial strength rank of 3. GuruFocus warns that the company has increased its long-term debt by over $3.9 billion over the past three years, contributing to high debt ratios and weak Altman Z-scores.
Alibaba ranks sixth on the list with 20 users buying shares.
GuruFocus ranks the Chinese e-commerce giant's financial strength 8 out of 10 on several positive investing signs, which include a strong Altman Z-score of 9 and a debt-to-Ebitda ratio less than one that is outperforming close to 90% of global competitors.
Bonus: Tesla is also among top 10 stocks in "Buying" category
With 18 votes, Tesla Inc. (NASDAQ:TSLA) is in a three-way tie for seventh place on the "buying" list with Cisco Inc. (NASDAQ:CSCO) and Exxon Mobil Corp. (XOM) despite the Palo Alto, California-based electric vehicle giant remaining as the top stock in the "Not Interested" basket. Twenty-nine GuruFocus users voted that they dismissed Tesla as a potential investment.
Disclosure: The author is long Apple, Intel and Biogen. The "baskets" statistics are just a consensus and do not constitute any recommendation. Investors must do their own research before investing in the stocks mentioned.
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This article first appeared on GuruFocus.