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Top Five Guru-Held Consumer Defensive Stocks

October 09, 2013 | About:
Monica Wolfe

Monica Wolfe

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Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which consumer defensive companies are held by the most gurus. As of the second quarter, the following five consumer defensive-based stocks are held by the largest number of gurus.

Wal-Mart Stores (WMT)

As of the close of the second quarter there were 36 guru owners of Wal-Mart Stores. During the past quarter there were 16 gurus buying shares of WMT and there were 13 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 38.48%.

The top three guru shareholders of Wal-Mart Stores:

1. Warren Buffett: 49,247,235 shares, representing 1.5% of the company’s shares outstanding and 4.1% of his total portfolio.

2. Jeremy Grantham: 15,642,603 shares, representing 0.48% of the company’s shares outstanding and 3% of his total portfolio.

3. Dodge & Cox: 13,931,834 shares, representing 0.43% of the company’s shares outstanding and 1.2% of their total assets managed.

Wal-Mart Stores is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. According to the Fortune Global 500, Wal-Mart is the world’s largest public corporation.

Wal-Mart’s historical revenue and net income:



The analysis on Wal-Mart reports that the company’s price is near a 10-year high, it has shown predictable revenue and earnings growth, the operating margin is expanding and the company has issued $8 billion in debt over the past three years.

The company announced earlier today that it split from its India partner, Bharti Enterprise due to legal issues. As a result Wal-Mart will buy the 50% stake in the joint venture and operate those 20 outlets throughout the country.

The Peter Lynch Chart suggests that Wal-Mart is currently undervalued:



Wal-Mart Stores has a market cap of $237.65 billion. Its shares are currently trading at around $73.00 with a P/E ratio of 14.20, a P/S ratio of 0.50 and a P/B ratio 3.30. The company had an annual average earnings growth of 10.4% over the past 10 years.

GuruFocus rated Wal-Mart the business predictability rank of 5-star.

PepsiCo (PEP)

As of the close of the second quarter there were 31 guru owners of PepsiCo. During the past quarter there were 11 gurus buying shares of PEP and there were 16 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 50.93%.

The top three guru shareholders of PepsiCo:

1. Donald Yacktman: 22,953,521 shares, representing 1.49% of the company’s shares outstanding and 8.9% of his total portfolio.

2. Jeremy Grantham: 14,729,864 shares, representing 0.96% of the company’s shares outstanding and 3.1% of his total portfolio.

3. Yacktman Focused Fund: 9,300,000 shares, representing 0.6% of the company’s shares outstanding and 9.5% of the fund’s total assets managed.

PepsiCo is an American multinational food and beverage corporation with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages and other products.

PepsiCo’s historical revenue and net income:



The analysis on Pepsi reports that the company’s revenue has slowed over the past year, the dividend yield is nearing a five-year low, its P/E ratio is at a one-year low and the company has issued $5.2 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:



PepsiCo has a market cap of $122.61 billion. Its shares are currently trading at around $79.50 with a P/E ratio of 18.80, a P/S ratio of 1.90 and a P/B ratio of 5.40. The company had an annual average earnings growth of 9.5% over the past 10 years.

GuruFocus rated PepsiCo the business predictability rank of 5-star.

Procter & Gamble (PG)

As of the close of the second quarter there were 29 guru owners of Procter & Gamble. During the past quarter there were 12 gurus buying shares of PG and there were 13 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 57.09%.

The top three guru shareholders of Procter & Gamble:

1. Warren Buffett: 52,793,078 shares, representing 1.93% of the company’s shares outstanding and 4.6% of his total portfolio.

2. Donald Yacktman: 25,393,047 shares, representing 0.93% of the company’s shares outstanding and 9.2% of his total portfolio.

3. Jeremy Grantham: 18,854,995 shares, representing 0.69% of the company’s shares outstanding and 3.8% of his total assets managed.

Procter & Gamble, also known as P&G, is a multinational consumer goods company. Its products include pet foods, cleaning agents and personal care products.

P&G’s historical revenue and net income:



The analysis on Procter & Gamble reports that the company’s revenue has slowed over the past year, its price is close to a 10-year high and they have issued $1.5 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:



Procter & Gamble has a market cap of $210.72 billion. Its shares are currently trading at around $76.95 with a P/E ratio of 20.00, a P/S ratio of 2.70 and a P/B ratio of 3.10. The company had an annual average earnings growth of 3.6% over the past 10 years.

Philip Morris International (PM)

As of the close of the second quarter there were 29 guru owners of Philip Morris. During the past quarter there were 13 gurus buying shares of PM and there were nine gurus making sells of their stake in the company. These gurus maintain a combined weighting of 55.70%.

The top three guru shareholders of Philip Morris International:

1. James Barrow: 21,373,282 shares, representing 1.32% of the company’s shares outstanding and 3.1% of his total portfolio.

2. Jeremy Grantham: 15,857,175 shares, representing 0.98% of the company’s shares outstanding and 3.6% of his total portfolio.

3. Tom Russo: 9,191,748 shares, representing 0.57% of the company’s shares outstanding and 9.3% of his total portfolio.

Philip Morris and its subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside the U.S. Its portfolio comprises both international and local brands.

Philip Morris’ historical revenue and net income:



The analysis on Philip Morris reports that the company’s revenue has been in decline over the past year, its price is nearing a 10-year high, they have issued $9.8 billion in debt over the past three years, its dividend yield is at a three-year high and its operating margin is expanding.

Philip Morris has a market cap of $136.22 billion. Its shares are currently trading at around $84.16 with a P/E ratio of 15.70 and a P/S ratio of 1.80. The dividend yield of Philip Morris International stocks is 4.10%. The company had an annual average earnings growth of 14.4% over the past five years.

Coca-Cola (KO)

As of the close of the second quarter there were 26 guru owners of Coca-Cola. During the past quarter there were 12 gurus buying shares of KO and there were eight gurus making sells of their stake in the company. These gurus maintain a combined weighting of 70.01%.

The top three guru shareholders of Coca-Cola:

1. Warren Buffett: 400,000,000 shares, representing 9.02% of the company’s shares outstanding and 18% of his total portfolio.

2. Jeremy Grantham: 42,088,314 shares, representing 0.95% of the company’s shares outstanding and 4.4% of his total portfolio.

3. Bill Gates: 34,002,000 shares, representing 0.77% of the company’s shares outstanding and 7.7% of his total portfolio.

Coca-Cola is a beverage company. It owns or license and market more than 500 nonalcoholic beverage brands, mainly sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.

Coca-Cola’s historical revenue and net income:



The analysis on Coca-Cola reports that the revenue has slowed over the past year, they have issued $14.4 billion of debt over the past three years and its P/S, P/B and P/E ratios are all trading at historical lows.

The Peter Lynch Chart suggests that the company is currently overvalued:



Coca-Cola has a market cap of $164.38 billion. Its shares are currently trading at around $37.08 with a P/E ratio of 19.60, a P/S ratio of 3.60 and a P/B ratio of 5.10. The company had an annual average earnings growth of 9.6% over the past ten years.

GuruFocus rated Coca-Cola the business predictability rank of 5-star.

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