U.S. Markets close in 6 hrs 2 mins

6 Stocks With High Business Predictability Ratings

- 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.

The Kroger Co. (KR)

The company has a five-star business predictability rank and, according to the discounted cash flow calculator, a 76.27% margin of safety at $25 share.


1480281936.png

The retailer has a market cap of $19.96 billion and an enterprise value of $34.71 billion. Over the last five years, its revenue has grown 8.80%, and its earnings per share have increased 16.50%.

Over the last 12 months the price was stable and are currently trading with a price-earnings ratio of 6.91. The price has been as high as $32.74 and as low as $23.52 in the last 52 weeks. As of Tuesday, the stock was trading 23.64% below its 52-week high and 6.29% above its 52-week low.

With 0.52% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder followed by Smead Value Fund (Trades, Portfolio) with 0.15% and Lee Ainslie (Trades, Portfolio)'s Maverick Capital with 0.05%.

Bausch Health Companies Inc. (BHC)

The company has a three-star business predictability rank and, according to the DCF calculator, a 118.30% margin of safety at $23.8 per share.

1460860380.png

The company, which manufactures products for the dermatology and ophthalmology markets, has a market cap of $8.35 billion and an enterprise value of $32 billion. Over the last five years, its revenue has increased 8%, but its earnings per share have not changed.

Shares have raised 31.71% over the last 12 months and are currently trading with a forward price-earnings ratio of 6.11 and a price-book ratio of 3.07. The price has been as high as $28.45 and as low as $17.20 in the last 52 weeks. As of Tuesday, the stock was trading 16.34% below its 52-week high and 38.37% 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)'s ValueAct Holdings LP with 5.14% and Larry Robbins (Trades, Portfolio)' Glenview Capital Management with 1.88%.

Micron Technology Inc. (MU)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 63.88% margin of safety at $42 per share.

The company has a $46.59 billion market cap and an enterprise value of $46.16 billion. Over the last five years, its revenue has grown 18.40% but its earnings per share have not changed.

Shares have fallen 8.42% over the last 12 months; they are currently trading with a price-earnings ratio of 3.87 and a price-book ratio of 1.39. The price has been as high as $64.66 and as low as $28.39 in the last 52 weeks. The stock is currently trading 134.89% below its 52-week high and 48.29% above its 52-week low.

With 5.16% of outstanding PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder followed by David Tepper (Trades, Portfolio)'s Appaloosa with 1.43%, Donald Smith (Trades, Portfolio) with 0.69% and Pioneer Investments (Trades, Portfolio) with 0.54%.

IRSA Propiedades Comerciales SA (IRCP)

The company has a four-star business predictability rank and, according to the DCF calculator, a 75% margin of safety at $18.8 per share.

1290353624.png

The company has a $531.41 million market cap. Over the last five years, its revenue has grown 30.70% and its earnings per share have risen 117.90%.

Shares have fallen 58% over the last 12 months; they are currently trading with a price-earnings ratio of 4.00 and a price-book ratio of 0.57. The price has been as high as $45.50 and as low as $16.82 in the last 52 weeks. The stock is currently trading 58.68% below its 52-week high and 11.77% above its 52-week low.

Biogen Inc. (BIIB)

The company has a 5-star business predictability rank and, according to the DCF calculator, a 62% margin of safety at $230 per share.

The company has a market cap of $44.7 billion. Over the last five years, its revenue has grown 16%, and its earnings per share have increased 15.60%.

Shares have fallen 15% over the last 12 months; they are currently trading with a price-earnings ratio of 10.67 and a price-book ratio of 3.49. The price has been as high as $388.67 and as low as $216.12 in the last 52 weeks. The stock is currently trading 40.69% below its 52-week high and 6.67% above its 52-week low.

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

Encore Capital Group Inc. (ECPG)

The company has a five-star business predictability rank and, according to the DCF calculator, a 62% margin of safety at $29 per share.

2106831787.png

The company, which provides debt-recovery solutions, has a $924.68 million market cap. Over the last five years, its revenue has increased 8.50% and its earnings per share have grown 4.10%.

Shares have fallen 32% over the last 12 months; they are currently trading with a price-earnings ratio of 7.45 and a price-book ratio of 1.15. The price has been as high as $47.80 and as low as $20.38 in the last 52 weeks. The stock is currently trading 37.36% below its 52-week high and 46.91% above its 52-week low.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 0.14% of outstanding shares.

Disclosure: I do not own any stocks mentioned.

Read more here:

6 Stocks Expanding Their Book Value

T Rowe Price Buys Conagra, Adds to CVS

6 Stocks Outperforming the Market

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.