5 Guru Stocks Predicted to Boost Earnings

Alibaba makes the list

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Jun 09, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, as of June 9, the following guru-held companies are trading at a discount and have positive future earnings estimates from Morningstar analysts.

Alexion Pharmaceuticals

Shares of Alexion Pharmaceuticals Inc. (ALXN) were trading around $119.74 on Tuesday.

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The developer and marketer of drugs has a GuruFocus profitability rating of 9 out of 10. Its earnings per share have climbed 82.50% over the past three years.

Analysts project a three-year to five-year earnings growth rate of 12.98%. The return on equity of 22.29% and return on assets of 15% are outperforming 96% of companies in the biotechnology industry.

With 1.70% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.32% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.29%.

VMware

On Tuesday, VMware Inc. (VMW) was trading around $151.85 per share.

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With a market cap of $63 billion, the leader of virtual machines, data centers and related services has a GuruFocus profitability rating of 9 out of 10. Its earnings per share have climbed 73.8% over the past three years.

Analysts project a three-year to five-year earnings growth rate of 19.33%. The return on equity of 120.99% and return on assets of 28.08% are outperforming 98% of companies in the software industry.

PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 0.25% of outstanding shares, followed by Simons’ firm with 0.18% and Dodge & Cox with 0.11%.

Rush Enterprises

Class A shares of Rush Enterprises Inc. (RUSHA) were trading around $46.08 per share on Tuesday.

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With a market cap of $1.5 billion, the truck dealer has a GuruFocus profitability rating of 7 out of 10. Its earnings per share have risen 55.60% over the past three years.

Analysts project a three-year to five-year earnings growth rate of 6.28%. The return on equity of 11.27% and return on assets of 3.75% are outperforming 62% of companies in the vehicles and parts industry.

With 2.39% of outstanding shares, HOTCHKIS & WILEY is the company's largest guru shareholder, followed by Simons with 1.26% and Ronald Muhlenkamp (Trades, Portfolio) with 0.69%.

Mastech Digital

Mastech Digital Inc. (MHH) was trading around $22.51 per share on Tuesday.

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The provider of IT Technology services has a market cap of $252 million and a GuruFocus profitability rating of 8 out of 10. Its earnings per share have increased 52.30% over the past three years.

Analysts project a three-year to five-year earnings growth rate of 22%. The return on equity of 27.88% and return on assets of 12.86% are outperforming 90% of companies in the business services industry.

With 0.89% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder.

Alibaba

On Tuesday, Alibaba Group Holdings Ltd. (BABA) was trading around $219 per share.

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With a market cap of $587 billion, the online commerce giant has a GuruFocus profitability rating of 9 out of 10. Its earnings per share have climbed 47.90% over the last three years.

Analysts project a three-year to five-year earnings growth rate of 21.95%. The return on equity of 23.68% and return on assets of 12.78% are outperforming 93% of companies in the retail, cyclical industry.

With 0.51% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.49% and Frank Sands (Trades, Portfolio) with 0.33%.

Disclosure: I do not own any stocks mentioned.

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