4 Predictable Stocks With a Margin of Safety

Hanesbrands tops the list

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Jun 24, 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 wide margins of safety as of June 24.

Mobile TeleSystems

Mobile TeleSystems PJSC (MBT) has a business predictability rank of 4.5 out of 5 stars and, according to the discounted cash flow calculator, a 10.96% margin of safety at an average price of $9.34 per share.

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The Russian wireless operator has a market cap of $8.7 billion and an enterprise value of $13.8 billion. Over the past five years, its revenue has grown 2.5%.

Over the past 12 months, the stock price has increased 16.94% and is currently trading with a price-earnings ratio of 10.70. The share price has been as high as $11 and as low as $6.20 in the last year. As of June 24, the stock was trading 15.09% below its 52-week high and 50.65% above its 52-week low.

With 4.93% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 0.62% and Charles Brandes (Trades, Portfolio) with 0.26%.

Hanesbrands

Hanesbrands Inc. (HBI) has a 4-star business predictability rank and, according to the DCF calculator, a 63.22% margin of safety at the average price of $11.27 per share.

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The manufacturer of sport apparel has a market cap of $3.9 billion and an enterprise value of $7.8 billion. Over the past five years, its revenue has increased 5.7%.

The stock has lost 32.63% over the last 12 months and shares are trading with a price-earnings ratio of 7.94. The share price has been as high as $19.10 and as low as $6.96 in the last 52 weeks. As of June 24, the stock was trading 40.99% below its 52-week high and 61.93% above its 52-week low.

With 5.98% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by the Parnassus Endeavor Fund (Trades, Portfolio) with 2.93% and Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.22%.

HCA Healthcare

HCA Healthcare Inc. (HCA) has a 3-star business predictability rank and, according to the DCF calculator, a 43.07% margin of safety at an average price of $99.08 per share.

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The healthcare provider has a $33.4 billion market cap and an enterprise value of $71.3 billion. Over the past five years, its revenue has increased 6.4% and its earnings per share have grown 20.40%.

The share price has lost 21.77% over the past 12 months. The stock is trading with a price-earnings ratio of 11.27. The share price has been as high as $151.97 and as low as $58.38 in the last 52 weeks. As of June 24, the stock was trading 34.8% below its 52-week high and 69.72% above its 52-week low.

With 2.11% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's most notable shareholder, followed by Larry Robbins (Trades, Portfolio)’ Glenview Capital Management with 0.83% and First Eagle Investment (Trades, Portfolio) with 0.70%.

Industrias Bachoco

Industrias Bachoco SAB de CV (IBA) has a 3-star business predictability rank and, according to the DCF calculator, a 63.11% margin of safety at an average price of $36.43 per share.

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The poultry producer and marketer has a market cap of $1.8 billion and an enterprise value of $1.1 billion. Over the past five years, its revenue has increased 8.6% and its earnings per share have decreased 3.3%.

Shares have declined 26.37% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 8.34. The share price has been as high as $57 and as low as $28.04 in the last 52 weeks. As of June 24, the stock was trading 36.09% below its 52-week high and 29.92% above its 52-week low.

With 1.30% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.25%.

Disclosure: I do not own any stocks mentioned.

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