The following five companies represent Chris Davis’ largest holdings as of the close of the second quarter. During the second quarter, Davis bought eight stocks bringing his total stocks to 193 valued at over $39 billion.
American Express (AXP)
Chris Davis maintains his largest holding in American Express with the company taking up 7.2% of his total portfolio.
During the second quarter, Davis made a minor decrease in his holdings of American Express. The guru decreased his position -5.4% by selling 2,157,765 shares. Davis still holds on to 37,779,862 shares of American Express stock, representing 3.42% of the company’s shares outstanding.
Davis’ holding history as of the second quarter:
Chris Davis is the second largest guru shareholder of American Express stock following Warren Buffett.
American Express together with its subsidiaries is a global service company. Its principal products and services are charge and credit payment card products and travel-related services.
American Express’s historical revenue and net income:
The company’s second quarter financials reported:
· Net income of $1.4 billion, up 5% from last year.
· Diluted EPS was $1.27, up 10% from last year.
· Revenues of $8.2 billion, up 4%.
The Peter Lynch Chart shows that American Express is currently overvalued:
American Express has a market cap of $82.32 billion. Its shares are currently trading at around $76.30 with a P/E ratio of 18.60, a P/S ratio of 2.60 and a P/B ratio of 4.40. The company has seen an annual average earnings growth of 5.1% over the past 10 years.
GuruFocus rate AXP the business predictability rank of 3.5-star.
Wells Fargo & Co (WFC)
Davis’ second largest holding is Wells Fargo which takes up 6.3% of the guru’s portfolio.
During the second quarter, Davis reduced his position in the financial company -5.67%. The guru sold a total of 3,628,077 shares at an average price of $38.97 per share. Since his sell, the share price has increased an additional 11%.
Davis now owns 60,400,962 shares of Wells Fargo, representing 1.15% of the company’s shares outstanding. Davis’ holding history as of June 30:
Chris Davis is currently the third largest guru shareholder of Wells Fargo. He sits behind Warren Buffett and Dodge & Cox .
Wells Fargo is a financial services company that provides retail, commercial and corporate banking services. The company also provides other financial services through subsidiaries engaged in various businesses such as wholesale banking, mortgage banking, consumer finance, equipment leasing, securities brokerage, agricultural finance and investment banking.
Wells Fargo’s historical revenue and net income:
The company’s second quarter financials reported:
· Net income of $5.5 billion; EPS of $0.98, up 20% from second quarter 2012
· Revenue of $21.4 billion up $89 million.
· Non-performing assets of $21.1 billion, down $1.0 billion from last year.
· Return on average assets of 1.55%, up 14 basis points.
· Repurchased 26.7 million shares of common stock.
The Peter Lynch Chart shows that Wells Fargo is currently undervalued:
Wells Fargo has a market cap of $228.91 billion. Its shares are currently trading at around $43.22 with a P/E ratio of 12.20, a P/S ratio of 2.70 and a P/B ratio of 1.60. The company has seen an annual average earnings growth of 1.6% over the past 10 years.
Bank of New York Mellon (BK)
Davis’ third largest holding is also in the financial sector. The guru holds 87,249,185 shares of Bank of New York Mellon Corp, representing 7.51% of the company’s shares outstanding and 6.2% of his total portfolio.
During the second quarter, Davis made a 4% reduction to his holdings in the bank. The guru sold a total of 3,633,435 shares at an average price of $28.72 per share. Since this reduction, the price per share has increased approximately 8.5%.
Davis has held a position in BK since third quarter 2007. The guru’s holding history of BK as of the second quarter:
Davis is the largest guru shareholder of Bank of New York Mellon.
Bank of New York Mellon provides a comprehensive array of services that enable institutions and individuals to manage and service their financial assets in more than 100 markets worldwide.
Bank of New York Mellon’s historical revenue and net income:
The company’s second quarter financials reported:
· Earnings of $833 million, or $0.71 per diluted share.
· Repurchased 11.9 million common shares for $330 million.
· Assets under management up 10% from last year.
The Peter Lynch Chart shows that the company appears to be overvalued:
Bank of New York Mellon has a market cap of $36.05 billion. Its shares are currently trading at around $31.06 with a P/E ratio of 23.60, a P/S ratio of 2.50 and a P/B ratio of 1.10.
Google (GOOG)
Davis’s fourth largest holding is in Google where he holds 2,358,290 shares, representing 6% of his total portfolio.
During the second quarter, Davis made a slight decrease in his holdings of Google. The guru sold 23,243 shares at an average price of $849.25. Since that sell, the price per share has increased an additional 4.9%.
Davis’ holding history as of the second quarter:
Davis is currently the third largest guru shareholder of Google stock.
Google maintains an index of web sites and other content, and makes this information freely available to anyone with an Internet connection.
Google’s historical revenue and net income:
Google’s second quarter results highlighted:
· Revenues of $14.11 billion, an increase of 19% compared to last year.
· GAAP operating income was $3.12 billion. Non-GAAP operating income was $3.94 billion.
· GAAP EPS was $9.54 on 338 million shares outstanding, compared to $8.42 in the second quarter 2012.
· GAAP net income was $3.23 billion, compared to $2.79 billion last year.
The Peter Lynch Chart shows that Google is currently overvalued:
Google has a market cap of $297.27 billion. Its shares are currently trading at around $892.66 with a P/E ratio of 26.60, a P/S ratio of 5.20 and a P/B ratio of 3.80. The company had an annual average earnings growth of 44% over the past 10 years.
GuruFocus rated Google the business predictability rank of 2.5-star.
CVS Caremark (CVS)
Chris Davis’ fifth largest position belongs to CVS Caremark; the guru holds 5.6% of his total portfolio in the company.
During the second quarter Davis dropped -9.39% of his position in CVS by selling a total of 4,030,606 shares of the company’s stock. Davis sold these shares at an average price of $57.94 per share. Since his reduction, the price per share has increased approximately 2.4% from his average sell price.
Davis now holds on to 38,896,601 shares of CVS Caremark, representing 3.16% of the company’s shares outstanding. Davis’ holding history as of the second quarter:
Davis is the largest guru shareholder of CVS.
CVS Caremark is a pharmacy health care provider in the U.S. It has three reportable business segments: Pharmacy Services, Retail Pharmacy and Corporate.
CVS Caremark’s historical revenue and net income:
The company’s second quarter financials reported:
- Operating profit increased 15.2% to $2 billion.
- Adjusted EPS increased 19.6% to $0.97.
- Generated FCF of $1.7 billion year-to-date.
- Cash flow from operations of $2.5 billion year-to-date.
The Peter Lynch Chart shows that CVS currently appears to be overvalued:
CVS Caremark has a market cap of $72.66 billion. Its shares are currently trading at around $59.34 with a P/E ratio of 18.50, a P/S ratio of 0.60 and a P/B ratio of 3.80. The company has seen an annual average earnings growth of 19.9% over the past 10 years.
GuruFocus rated the company the business predictability rank of 3.5-star.
Check out Chris Davis’s second quarter portfolio here.
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American Express (AXP)
Chris Davis maintains his largest holding in American Express with the company taking up 7.2% of his total portfolio.
During the second quarter, Davis made a minor decrease in his holdings of American Express. The guru decreased his position -5.4% by selling 2,157,765 shares. Davis still holds on to 37,779,862 shares of American Express stock, representing 3.42% of the company’s shares outstanding.
Davis’ holding history as of the second quarter:
Chris Davis is the second largest guru shareholder of American Express stock following Warren Buffett.
American Express together with its subsidiaries is a global service company. Its principal products and services are charge and credit payment card products and travel-related services.
American Express’s historical revenue and net income:
The company’s second quarter financials reported:
· Net income of $1.4 billion, up 5% from last year.
· Diluted EPS was $1.27, up 10% from last year.
· Revenues of $8.2 billion, up 4%.
The Peter Lynch Chart shows that American Express is currently overvalued:
American Express has a market cap of $82.32 billion. Its shares are currently trading at around $76.30 with a P/E ratio of 18.60, a P/S ratio of 2.60 and a P/B ratio of 4.40. The company has seen an annual average earnings growth of 5.1% over the past 10 years.
GuruFocus rate AXP the business predictability rank of 3.5-star.
Wells Fargo & Co (WFC)
Davis’ second largest holding is Wells Fargo which takes up 6.3% of the guru’s portfolio.
During the second quarter, Davis reduced his position in the financial company -5.67%. The guru sold a total of 3,628,077 shares at an average price of $38.97 per share. Since his sell, the share price has increased an additional 11%.
Davis now owns 60,400,962 shares of Wells Fargo, representing 1.15% of the company’s shares outstanding. Davis’ holding history as of June 30:
Chris Davis is currently the third largest guru shareholder of Wells Fargo. He sits behind Warren Buffett and Dodge & Cox .
Wells Fargo is a financial services company that provides retail, commercial and corporate banking services. The company also provides other financial services through subsidiaries engaged in various businesses such as wholesale banking, mortgage banking, consumer finance, equipment leasing, securities brokerage, agricultural finance and investment banking.
Wells Fargo’s historical revenue and net income:
The company’s second quarter financials reported:
· Net income of $5.5 billion; EPS of $0.98, up 20% from second quarter 2012
· Revenue of $21.4 billion up $89 million.
· Non-performing assets of $21.1 billion, down $1.0 billion from last year.
· Return on average assets of 1.55%, up 14 basis points.
· Repurchased 26.7 million shares of common stock.
The Peter Lynch Chart shows that Wells Fargo is currently undervalued:
Wells Fargo has a market cap of $228.91 billion. Its shares are currently trading at around $43.22 with a P/E ratio of 12.20, a P/S ratio of 2.70 and a P/B ratio of 1.60. The company has seen an annual average earnings growth of 1.6% over the past 10 years.
Bank of New York Mellon (BK)
Davis’ third largest holding is also in the financial sector. The guru holds 87,249,185 shares of Bank of New York Mellon Corp, representing 7.51% of the company’s shares outstanding and 6.2% of his total portfolio.
During the second quarter, Davis made a 4% reduction to his holdings in the bank. The guru sold a total of 3,633,435 shares at an average price of $28.72 per share. Since this reduction, the price per share has increased approximately 8.5%.
Davis has held a position in BK since third quarter 2007. The guru’s holding history of BK as of the second quarter:
Davis is the largest guru shareholder of Bank of New York Mellon.
Bank of New York Mellon provides a comprehensive array of services that enable institutions and individuals to manage and service their financial assets in more than 100 markets worldwide.
Bank of New York Mellon’s historical revenue and net income:
The company’s second quarter financials reported:
· Earnings of $833 million, or $0.71 per diluted share.
· Repurchased 11.9 million common shares for $330 million.
· Assets under management up 10% from last year.
The Peter Lynch Chart shows that the company appears to be overvalued:
Bank of New York Mellon has a market cap of $36.05 billion. Its shares are currently trading at around $31.06 with a P/E ratio of 23.60, a P/S ratio of 2.50 and a P/B ratio of 1.10.
Google (GOOG)
Davis’s fourth largest holding is in Google where he holds 2,358,290 shares, representing 6% of his total portfolio.
During the second quarter, Davis made a slight decrease in his holdings of Google. The guru sold 23,243 shares at an average price of $849.25. Since that sell, the price per share has increased an additional 4.9%.
Davis’ holding history as of the second quarter:
Davis is currently the third largest guru shareholder of Google stock.
Google maintains an index of web sites and other content, and makes this information freely available to anyone with an Internet connection.
Google’s historical revenue and net income:
Google’s second quarter results highlighted:
· Revenues of $14.11 billion, an increase of 19% compared to last year.
· GAAP operating income was $3.12 billion. Non-GAAP operating income was $3.94 billion.
· GAAP EPS was $9.54 on 338 million shares outstanding, compared to $8.42 in the second quarter 2012.
· GAAP net income was $3.23 billion, compared to $2.79 billion last year.
The Peter Lynch Chart shows that Google is currently overvalued:
Google has a market cap of $297.27 billion. Its shares are currently trading at around $892.66 with a P/E ratio of 26.60, a P/S ratio of 5.20 and a P/B ratio of 3.80. The company had an annual average earnings growth of 44% over the past 10 years.
GuruFocus rated Google the business predictability rank of 2.5-star.
CVS Caremark (CVS)
Chris Davis’ fifth largest position belongs to CVS Caremark; the guru holds 5.6% of his total portfolio in the company.
During the second quarter Davis dropped -9.39% of his position in CVS by selling a total of 4,030,606 shares of the company’s stock. Davis sold these shares at an average price of $57.94 per share. Since his reduction, the price per share has increased approximately 2.4% from his average sell price.
Davis now holds on to 38,896,601 shares of CVS Caremark, representing 3.16% of the company’s shares outstanding. Davis’ holding history as of the second quarter:
Davis is the largest guru shareholder of CVS.
CVS Caremark is a pharmacy health care provider in the U.S. It has three reportable business segments: Pharmacy Services, Retail Pharmacy and Corporate.
CVS Caremark’s historical revenue and net income:
The company’s second quarter financials reported:
- Operating profit increased 15.2% to $2 billion.
- Adjusted EPS increased 19.6% to $0.97.
- Generated FCF of $1.7 billion year-to-date.
- Cash flow from operations of $2.5 billion year-to-date.
The Peter Lynch Chart shows that CVS currently appears to be overvalued:
CVS Caremark has a market cap of $72.66 billion. Its shares are currently trading at around $59.34 with a P/E ratio of 18.50, a P/S ratio of 0.60 and a P/B ratio of 3.80. The company has seen an annual average earnings growth of 19.9% over the past 10 years.
GuruFocus rated the company the business predictability rank of 3.5-star.
Check out Chris Davis’s second quarter portfolio here.
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