5 Undervalued-Predictable Stocks

Allstate tops the list

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Mar 13, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, the following companies have high business predictability ratings and a wide margin of safety.

Allstate

Allstate Corp. (ALL, Financial) has a business predictability rank of 3.5 out of five stars and, according to the discounted cash flow calculator, a 79% margin of safety at an average price of $83.8 per share.

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The property-casualty insurance company has a market cap of $26 billion and an enterprise value of $30.8 billion. Over the past five years, its revenue has grown 4.6% and its earnings per share have grown 15.6%.

Over the past 12 months, the stock has declined 10% and is currently trading with a price-earnings ratio of 5.95. The share price has been as high as $125.92 and as low as $83.72 in the last year. As of March 13, the stock hit its 52-week low.

With 0.21% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Robert Bruce (Trades, Portfolio) with 0.10% and Richard Pzena (Trades, Portfolio) with 0.09%.

BlackRock

BlackRock Inc. (BLK, Financial) has a 3.5-star business predictability rank and, according to the DCF calculator, a 31.46% margin of safety at the average price of $386 per share.

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The asset manager has a market cap of $60.17 billion and an enterprise value of $60.36 billion. Over the past five years, its revenue has increased 6.2% and its earnings per share have grown 9.9%.

The stock has declined 11% over the last 12 months and shares are trading with a price-earnings ratio of 13.57. The share price has been as high as $576.81 and as low as $383.43 in the last 52 weeks. As of March 13, the stock was trading 33.04% below its 52-week high and 0.73% above its 52-week low.

With 0.19% of outstanding shares, Pioneer Investments is the company's largest guru shareholder, followed by Tom Gayner (Trades, Portfolio) with 0.14%, Ken Fisher (Trades, Portfolio) with 0.08% and Joel Greenblatt (Trades, Portfolio) with 0.03%.

CBRE Group

CBRE Group Inc. (CBRE, Financial) has a 3.5-star business predictability rank and, according to the DCF calculator, a 58.4% margin of safety at an average price of $44.53 per share.

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The provider of real estate services has a $14.91 billion market cap and an enterprise value of $17.95 billion. Over the past five years, its revenue has increased 22% and its earnings per share have grown 21.8%.

The share price has fallen 11% over the past 12 months. The stock is trading with a price-earnings ratio of 11.84 and a price-book ratio of 2.84. The share price has been as high as $64.85 and as low as $44.41 in the last 52 weeks. As of March 13, the stock was trading 31.23% below its 52-week high and 0.27% above its 52-week low.

With 3.04% of outstanding shares, Jeff Ubben (Trades, Portfolio)’s ValueAct Holdings is the company's most notable shareholder, followed by Ron Baron (Trades, Portfolio) with 0.63% and John Rogers (Trades, Portfolio) with 0.54%.

Dycom Industries

Dycom Industries Inc. (DY, Financial) has a business predictability rank of four out of five stars and, according to the DCF calculator, a 17.96% margin of safety at an average price of $15.8 per share.

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The construction engineering company, which provides specialty contracting services to the telecom and infrastructure industries, has a market cap of $499 million and an enterprise value of $1.4 billion. Over the past five years, its revenue has climbed 13.70% and its earnings per share have increased 5.5%.

Shares have tanked 68% over the past 12 months. The stock is currently trading with a price-earnings ratio of 8.78 and a price-book ratio of 0.58. The share price has been as high as $60.55 and as low as $14.44 in the last 52 weeks. As of March 13, the stock was trading 73.91% below its 52-week high and 9.42% above its 52-week low.

With 0.28% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments with 0.01%.

EMCOR Group

EMCOR Group Inc. (EME, Financial) has a business predictability rank of three stars and, according to the discounted cash flow calculator, a 10.87% margin of safety at an average price of $55 per share.

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The company provides electrical and mechanical facilities services in the U.S. It has a $3.09 bllion market cap and an enterprise value of $3.3 billion. Over the past five years, its revenue has grown 7% and its earnings per share have climbed 18.7%.

Share prices have declined 24% over the past year. The stock is trading with a price-earnings ratio of 9.54 and a price-book ratio of 1.51. The price has been as high as $93.54 and as low as $54.83 in the last 52 weeks. As of March 13, the stock was trading 41.27% below its 52-week high and 0.20% above its 52-week low.

With 0.12% of outstanding shares, Third Avenue Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Greenblatt with 0.11% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

Disclosure: I do not own any stocks mentioned.

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