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6 Predictable Guru Stocks

- 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.

Bausch Health Companies Inc. (BHC)

The company has a three out of five-star business predictability rank and, according to the discounted cash flow calculator, a 75.47% margin of safety at $25 per share.


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The company, which manufactures generic pharmaceutical products, has a market cap of $8.77 billion and an enterprise value of $32.46 billion. Over the last five years, its revenue has grown 8.5% but earnings per share have not changed.

The stock has gained 62% over the last 12 months and is currently trading with a price-book ratio of 3.16. The share price has been as high as $28.45 and as low as $15.28 in the last 52 weeks. As of Tuesday, it is trading 12.27% below its 52-week high and 63.35% above its 52-week low.

With 5.94% of outstanding shares, John Paulson (Trades, Portfolio) is the company's largest guru shareholder, followed by Jeff Ubben (Trades, Portfolio) with 5.14% and Larry Robbins (Trades, Portfolio) with 1.88%.

Biogen Inc. (BIIB)

The company has a five-star business predictability rank and, according to the DCF calculator, a 62% margin of safety at $237 per share.

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The company, which develops therapies for the treatment of rare neurological and autoimmune diseases, has a market cap of $46.23 billion. Over the last five years, its revenue has grown 16% and its earnings per share have grown 15.60%.

The stock has fallen 9% over the last 12 months and is currently trading with a price-earnings ratio of 10.99 and a price-book ratio of 3.61. The share price has been as high as $388.67 and as low as $216.12 in the last 52 weeks. As of Tuesday, it is trading 39.53% below its 52-week high and 8.75% above its 52-week low.

With 7.48% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.88% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.52%.

Walker & Dunlop Inc. (WD)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 61% margin of safety at $51.26 per share.

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The company, which supplies commercial real estate financing, has a $1.57 billion market cap. Over the last five years, its revenue has grown 20.50% and its earnings per share have increased 39.20%.

The stock has tumbled 14% over the last 12 months; it is currently trading with a price-earnings ratio of 10.40 and a price-book ratio of 1.80. The share price has been as high as $61.44 and as low as $37.96 in the last 52 weeks. It is currently trading 16.57% below its 52-week high and 35.04% above its 52-week low.

With 0.91% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder.

Miller Industries Inc. (MLR)

The company has a four-star business predictability rank and, according to the DCF calculator, a 58% margin of safety at $31.87 per share.

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The provider of towing and recovery equipment has a $363.32 million market cap. Over the last five years, its revenue has increased 10.70% and its earnings per share have grown 25.40%.

The stock has risen 25% over the last 12 months; it is currently trading with a price-earnings ratio of 10.73 and a price-book ratio of 1.60. The share price has been as high as $35.26 and as low as $22.80 in the last 52 weeks. It is currently trading 9.61% below its 52-week high and 39.78% above its 52-week low.

The company's largest guru shareholder is Royce with 11.57% of outstanding shares, followed by Hotchkis & Wiley with 8.29%, Simons' firm with 0.76% and Robert Olstein (Trades, Portfolio) with 0.58%.

Alliance Data Systems Corp. (ADS)

The company has a five-star business predictability rank and, according to the DCF calculator, a 58% margin of safety at $179.83 per share.

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The marketing, loyalty and credit solutions provider has a market cap of $9.53 billion. Over the last five years, its revenue has grown 17.10% and its earnings per share have increased 18.20%.

The stock has risen 4% over the last 12 months; it is currently trading with a price-earnings ratio of 10.26 and a price-book ratio of 4.20. The price has been as high as $250.27 and as low as $142.58 in the last 52 weeks. It is currently trading 28.15% below its 52-week high and 26.13% above its 52-week low.

With 9.83% of outstanding shares, Ubben is the company's largest guru shareholder, followed by Glenn Greenberg (Trades, Portfolio) with 3.29% and Ray Dalio (Trades, Portfolio) with 0.94%.

Gentex Corp. (GNTX)

The company has a four-star business predictability rank and, according to the DCF calculator, a 54% margin of safety at $21.16 per share.

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The manufacturer of rearview mirrors and electronics has a $5.44 billion market cap. Over the last five years, its revenue has increased 10.60% and its earnings per share have grown 15.10%.

The stock has fallen 11% over the last 12 months; it is currently trading with a price-earnings ratio of 12.98 and a price-book ratio of 2.98. The share price has been as high as $25.41 and as low as $17.80 in the last 52 weeks. It is currently trading 16.73% below its 52-week high and 18.88% above its 52-week low.

The company's largest guru shareholder is Royce with 1.15% of outstanding shares, followed by Simons' firm with 0.24%, Steven Cohen (Trades, Portfolio) with 0.22% and Mario Gabelli (Trades, Portfolio) with 0.09%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.