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Top Guru-Held Consumer Defensive Stocks

December 16, 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 companies based out of the Consumer Defensive sector were held by the highest number of gurus. The following five companies come from this industry and are held by the largest number of gurus.

Philip Morris International (PM)

As of the close of the third quarter there were 32 guru owners of Philip Morris. During the past quarter there were 18 gurus buying shares of PM and there were seven gurus making sells of their stake in the company. These gurus maintain a combined weighting of 62.75%.

The top guru shareholders of Philip Morris:

1. James Barrow: 21,562,204 shares, representing 1.33% of the company’s shares outstanding.

2. Jeremy Grantham: 16,210,217 shares, representing 1% of the company’s shares outstanding.

3. Tom Russo: 9,616,739 shares, representing 0.59% of the company’s shares outstanding.

Philip Morris’ subsidiaries and affiliates and their licensees 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. Its portfolio of international and local brands is led by Marlboro.

Philip Morris’ historical revenue and net income:

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The company recently announced that they would be acquiring a 20% interest in Russian Megapolis Group, which is PMI’s distributor in Russia. They will purchase this for $750 million.

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

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Philip Morris has a market cap of $136.57 billion. Its shares are currently trading at around $85.24 with a P/E ratio of 16.20 and P/S ratio of 1.76. The company had an annual average earnings growth of 14.50% over the past five years.

Wal-Mart Stores (WMT)

As of the close of the third quarter there were 32 guru owners of Wal-Mart. During the past quarter there were 14 gurus buying shares of WMT and there were 16 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 32.81%.

The top guru owners of Wal-Mart:

1. Warren Buffett: 49,247,235 shares, representing 1.5% of the company’s shares outstanding.

2. Jeremy Grantham: 15,337,074 shares, representing 0.47% of the company’s shares outstanding.

3. Dodge & Cox: 14,208,943 shares, representing 0.43% of the company’s shares outstanding.

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:

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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 Peter Lynch Chart suggests that Wal-Mart is currently overvalued:

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Wal-Mart Stores has a market cap of $252.65 billion. Its shares are currently trading at around $78.08 with a P/E ratio of 15.00, a P/S ratio of 0.54 and a P/B ratio 3.45. The company had an annual average earnings growth of 10.20% over the past 10 years.

GuruFocus rated Wal-Mart the business predictability rank of 4.5-star.

Procter & Gamble (PG)

As of the close of the third quarter there were 31 guru owners of Procter & Gamble. During the past quarter there were 11 gurus buying shares of PG and there were 17 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 54.55%.

The top guru owners of Proctor & Gamble:

1. Warren Buffett: 52,793,078 shares, representing 1.93% of the company’s shares outstanding.

2. Donald Yacktman: 25,107,262 shares, representing 0.92% of the company’s shares outstanding.

3. Jeremy Grantham: 19,414,973 shares, representing 0.71% of the company’s shares outstanding.

Procter & Gamble provides branded consumer packaged goods. The company's business units are aggregated into five reportable segments: Beauty, Grooming, Health Care, Fabric and Home Care and Baby Care and Family Care.

Procter & Gamble’s historical revenue and net income:

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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:

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Procter & Gamble has a market cap of $223.9 billion. Its shares are currently trading at around $82.37 with a P/E ratio of 20.90, a P/S ratio of 2.85 and a P/B ratio of 3.34. The dividend yield of Procter & Gamble stocks is currently at 2.87%. The company had an annual average earnings growth of 3.90% over the past ten years.

PepsiCo (PEP)

As of the close of the third quarter there were 31 guru owners of PepsiCo. During the past quarter there were 16 gurus buying shares of PEP and there were 13 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 51.05%.

The top guru shareholders of PepsiCo:

1. Donald Yacktman: 27,937,091 shares, representing 1.81% of the company’s shares outstanding.

2. Jeremy Grantham: 13,553,502 shares, representing 0.88% of the company’s shares outstanding.

3. Yacktman Fund: 11,550,000 shares, representing 0.75% of the company’s shares outstanding.

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:

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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:

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PepsiCo has a market cap of $124.27 billion. Its shares are currently trading at around $81.03 with a P/E ratio of 18.90, a P/S ratio of 1.90 and a P/B ratio of 5.60. The company had an annual average earnings growth of 8.6% over the past 10 years.

GuruFocus rated PepsiCo the business predictability rank of 4.5-star.

CVS Caremark (CVS)

As of the close of the third quarter there were 26 guru owners of CVS Caremark. During the past quarter there were 13 gurus buying shares of CVS and there were 9 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 27.04%.

The top guru owners of CVS:

1. Chris Davis: 36,448,058 shares, representing 2.97% of the company’s shares outstanding.

2. First Pacific: 7,367,300 shares, representing 0.6% of the company’s shares outstanding.

3. Steven Romick: 6,805,000 shares, representing 0.55% of the company’s shares outstanding.

CVS Caremark provides pharmacy healthcare services in the U.S. It has three reportable business segments: Pharmacy Services, Retail Pharmacy and Corporate.

CVS Caremark’s historical revenue and net income:

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CVS's revenue growth has recently beaten the industry average of 2.5%. Since last year, the company’s revenues have increased by 1.7%. CVS improved its earnings per share by 21.3% in the most recent quarter compared to the same quarter last year.

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

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CVS has a market cap of $81.18 billion. Its shares are currently trading at around $68.20 with a P/E ratio of 18.90, a P/S ratio of 0.70 and a P/B ratio of 2.10. The company had an annual average earnings growth of 13.80% over the past ten years.

GuruFocus rated CVS the business predictability rank of 4-star.

You can check out other top held sectors of the market by using the Aggregated Screener here.

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