U.S. Markets closed

6 Undervalued Stocks With High Business Predictability

According to the GuruFocus All-in-One Screener, the following companies have high business predictability ratings and a wide margin of safety.

Gildan Activewear

Gildan Activewear Inc. (NYSE:GIL) has a business predictability rank of five out of five stars and, according to the discounted cash flow calculator, a 13.96% margin of safety at an average price of $27.8 per share.


7ce6b5a9317327e23ede2f43c7445b5a.png

The company, which manufactures T-shirts, fleece, socks and underwear, has a market cap of $5.67 billion and an enterprise value of $6.66 billion. Over the past five years, its revenue has grown 14.60% and its earnings per share have increased 11.10%.

Over the last 12 months, the stock has fallen 5.52% and is currently trading with a price-earnings ratio of 19.16. The share price has been as high as $40.40 and as low as $23.45 in the last 52 weeks. As of Thursday, the stock was trading 31.19% below its 52-week high and 18.55% above its 52-week low.

With 7.05% of outstanding shares, Sarah Ketterer is the company's largest guru shareholder, followed by Richard Pzena (Trades, Portfolio) with 1.78% and PRIMECAP Management (Trades, Portfolio) with 0.59%.

Service Corp. International

Service Corp. International (NYSE:SCI) has a four-star business predictability rank and, according to the DCF calculator, a 24.11% margin of safety at an average price of $46.3 per share.

eef8ee1a5693345538789d1a61e470ca.png

The provider of funeral and cemetery services has a market cap of $8.44 billion and an enterprise value of $11.83 billion. Over the past five years, its revenue has increased 6.90% and its earnings per share have grown 30.52%.

The stock has risen 8.58% over the last 12 months and shares are trading with a price-earnings ratio of 20.79 and a price-book ratio of 4.85. The price has been as high as $48.69 and as low as $37.52 in the last 52 weeks. As of Thursday, the stock was trading 4.92% below its 52-week high and 23.40% above its 52-week low.

With 0.37% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.16%, Jeremy Grantham (Trades, Portfolio) with 0.02% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

Bausch Health

Bausch Health Companies Inc. (NYSE:BHC) has a 3.5-star business predictability rank.

6fbab36cddd0c860f78c844edb80e7d7.png

The pharmaceutical company has a $7.95 billion market cap. Over the past five years, its revenue has grown 8.50%.

The price was stable over the past 12 months. The stock is trading with a forward price-earnings ratio of 5.15 and a price-book ratio of 3.02. The price has been as high as $27.72 and as low as $17.20 in the last 52 weeks. As of Thursday, the stock was trading 18.54% below its 52-week high and 31.28% above its 52-week low.

With 13.23% of outstanding shares, John Paulson (Trades, Portfolio) is the company's most notable shareholder, followed by Jeff Ubben (Trades, Portfolio)'s ValueAct Holdings with 11.39% and Larry Robbins (Trades, Portfolio) with 6.17%.

IPG Photonics

IPG Photonics Corp. (NASDAQ:IPGP) has a four -star business predictability rank and, according to the DCF calculator, a 12.40% margin of safety at an average price of $139.65 per share.

450513a08d44e7cbf197c98b7c3c8da7.png

The company, which manufactures high-performance fiber lasers as well as diode lasers, has a market cap of $7.43 billion and an enterprise value of $6.43 billion. Over the past five years, its revenue has grown 17.50% and its earnings per share have increased 19.30%.

Shares have risen 7.73% over the last 12 months. The stock is currently trading with a price-earnings ratio of 24.94 and price-book ratio of 3.12. The price has been as high as $182.17 and as low as $104.64 in the last 52 weeks. As of Thursday, the stock was trading 23.34% below its 52-week high and 33.46% above its 52-week low.

With 3.11% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder, followed by the Parnassus Endeavor Fund (Trades, Portfolio) with 1.32% and Chuck Royce (Trades, Portfolio) with 0.39%.

Gap

Gap Inc. (NYSE:GPS) has a three-star business predictability rank and, according to the DCF calculator, a 31.88% margin of safety at an average price of $17.10 per share.

9176207e365228fafc6ad200c56ebc66.png

The apparel and accessories retailer has a $6.71 billion market cap and an enterprise value of $13.08 billion. Over the past five years, its revenue has grown 3.70%, but its earnings per share have fallen 4.0%.

Shares have declined 31.17% over the past year. The stock is trading with a price-earnings ratio of 7.29 and a price-book ratio of 1.87. The price has been as high as $31.39 and as low as $15.11 in the last 52 weeks. As of Thursday, the stock was trading 43.10% below its 52-week high and 18.20% above its 52-week low.

The company's largest guru shareholder is Dodge & Cox with 4.73% of outstanding shares, followed by the Parnassus Endeavor Fund with 2.74%, Pioneer Investments with 0.05% and Grantham with 0.02%.

Alliance Data Systems

Alliance Data Systems Corp. (NYSE:ADS) has a five-star business predictability rank and, according to the DCF calculator, an 88% margin of safety at an average price of $105 per share.

1307d1defa84c68847d1a4dc5a195269.png

The company, which operates in the credit services industry, has a market cap of $5.31 billion and an enterprise value of $15.2 billion. Over the past five years, its revenue has grown 17.10% and its earnings per share have increased 18.20%.

Shares have declined 37.45% over the last 12 months. The stock is currently trading with a price-earnings ratio of 6.46 and price-book ratio of 2.78. The price has been as high as $214.95 and as low as $116.68 in the last 52 weeks. As of Thursday, the stock was trading 42.13% below its 52-week high and 6.62% above its 52-week low.

With 6.94% of outstanding shares, Ubben is the company's largest guru shareholder, followed by the Parnassus Endeavor Fund with 2.03% and Steven Cohen (Trades, Portfolio) with 1.46%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 6 Underperforming Stocks in Gurus' Portfolios
  • 6 Undervalued Stocks Growing Earnings
  • 5 Undervalued Stocks Expanding Book Value



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

This article first appeared on GuruFocus.