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Top Five Guru-Held Consumer Cyclical Stocks of the Fourth Quarter

February 24, 2014 | About:
Monica Wolfe

Monica Wolfe

130 followers
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 cyclical companies are held by the most gurus. As of the fourth quarter, the following five companies are held by the largest number of gurus.

General Motors (GM)

The most guru-held consumer cyclical stock of the fourth quarter is in General Motors. Over the past quarter there were 34 guru owners with 23 gurus making buys and 9 gurus making sells of their stake in the company. These gurus hold a combined weighting of 62.71%.

The top guru shareholders of General Motors:

- Warren Buffett: 40,000,000 shares, representing 2.89% of the company’s shares outstanding.

- David Einhorn: 17,047,339 shares, representing 1.23% of the company’s shares outstanding.

- NWQ Managers: 8,844,263 shares, representing 0.64% of the company’s shares outstanding.

General Motors Company designs, builds and sell cars, trucks and automobile parts. The company also provides automotive financing services through General Motors Financial Company Inc.

General Motors’ historical revenue and net income:

1393280266165.png

The analysis on GM reports that the company’s revenue has been in decline over the past five years, it has issued $5.4 billion of debt over the past three years and its price is sitting near a 5-year high.

General Motors has a market cap of $58.11 billion. Its shares are currently trading at around $36.55 with a P/E ratio of 26.00, a P/S ratio of 0.40 and a P/B ratio of 1.40.

eBay (EBAY)

The second most-held consumer cyclical company is eBay with 26 guru shareholders. During the past quarter there were 21 gurus making buys and 9 gurus makings sells of their stake in EBAY. These gurus hold on to a combined weighting of 29.99%.

The top guru shareholders of eBay:

1. Dodge & Cox: 18,774,269 shares, representing 1.45% of the company’s shares outstanding.

2. Donald Yacktman (Trades, Portfolio): 8,259,107 shares, representing 0.64% of the company’s shares outstanding.

3. Manning & Napier: 6,668,223 shares, representing 0.52% of the company’s shares outstanding.

eBay is a technology company that enables commerce through three reportable segments: Marketplaces, Payments and GSI. These segments provide online platform, services and tools to help individuals and small, medium and large merchants around the globe establish online and mobile commerce and payments.

eBay’s historical revenue and net income:

1393282742058.png

The analysis on eBay reports that the company’s price is sitting near its 10-year high, it has shown predictable revenue and earnings growth and its asset growth is currently faster than its revenue growth.

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

1393282850351.png

eBay has a market cap of $72.89 billion. Its shares are currently trading at around $56.30 with a P/E ratio of 25.80, a P/S ratio of 4.70 and a P/B ratio of 3.10. The company had an annual average earnings growth of 15.30% over the past ten years.

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

Lowe’s Companies (LOW)

The third most-held consumer cyclical company is Lowe’s Companies with 25 guru shareholders. During the past quarter there were 11 gurus making buys and 18 gurus makings sells of their stake in LOW. These gurus hold on to a combined weighting of 14.06%.

The top guru shareholders of Lowe’s Companies:

1. Andreas Halvorsen (Trades, Portfolio): 17,783,736 shares, representing 1.66% of the company’s shares outstanding.

2. Pioneer Investments (Trades, Portfolio): 3,288,870 shares, representing 0.31% of the company’s shares outstanding.

3. Steve Mandel (Trades, Portfolio): 2,114,588 shares, representing 0.2% of the company’s shares outstanding.

Lowe’s is a holding company for Lowe’s stores which are home improvement retailers. The company serves homeowners, renters and commercial business customers and offers a product portfolio which consists of paint, tools, wood, do-it-yourself products, hardware, home products, etc.

Lowe’s historical revenue and earnings growth:

1393280786810.png

The analysis on Lowe’s reports that the company has shown predictable revenue and earnings growth, its dividend yield is near a 5-year low and its price is sitting near a 10-year high.

The company is set to release their year-end and fourth quarter 2014 earnings results on February 26, 2014.

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

1393280823720.png

Lowes has a market cap of $49.38 billion. Its shares are currently trading at around $47.22 with a P/E ratio of 22.50, a P/S ratio of 1.00 and a P/B ratio of 4.10. The company had an annual average earnings growth of 4.40% over the past ten years.

GuruFocus rated the company the business predictability rank of 2.5-star.

Walt Disney (DIS)

The fourth most held consumer cyclical stock is in Walt Disney with 26 guru owners. There were six gurus making buys along with 18 guru sells over the past quarter. These gurus hold on to a combined weighting of 21.53%.

The top guru shareholders of Walt Disney:

1. PRIMECAP Management (Trades, Portfolio): 9,118,399 shares, representing 0.51% of the company’s shares outstanding.

2. Ken Fisher (Trades, Portfolio): 8,348,328 shares, representing 0.47% of the company’s shares outstanding.

3. Andreas Halvorsen (Trades, Portfolio): 6,642,265 shares, representing 0.37% of the company’s shares outstanding.

The company together with its subsidiaries is a worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media.

Walt Disney’s historical revenue and net income:

1393281483894.png

The analysis on Disney reports that the company’s price is at a 10-year high, its Piotroski F-Score is very high and it has shown predictable revenue and earnings growth. The analysis also notes that over the past three years the company has issued $2.5 billion of debt, but that its debt level is acceptable, and that the company’s operating margin is expanding.

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

1393281573297.png

Walt Disney has a market cap of $141.44 billion. Its shares are currently trading at around $80.73 with a P/E ratio of 22.20, a P/S ratio of 3.20 and a P/B ratio of 2.90. The company holds a 1.20% dividend yield, and has seen an annual average earnings growth of 10.30% over the past ten years.

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

Priceline.com (PCLN)

The fifth largest guru-held position goes to Priceline.com where there are currently 23 guru owners of the company. There were 9 gurus making buys and there were 15 gurus making sells of their stake in the company. These gurus hold a combined weighting of 37.06%.

The top guru shareholders of Priceline:

1. Frank Sands: 1,641,752 shares, representing 3.19% of the company’s shares outstanding.

2. Steve Mandel: 969,568 shares, representing 1.88% of the company’s shares outstanding.

3. Chase Coleman: 571,000 shares, representing 1.11% of the company’s shares outstanding.

Priceline is an online travel company that offers its customers a range of travel services, including hotel rooms, car rentals, airline tickets, vacation packages, cruises and destination services. The company also operates a retail, price-disclosed hotel reservation service in the U.S.

Priceline’s historical revenue and net income:

1393282232290.png

One of Priceline’s subsidiaries, Booking.com, recently announced a partnership with NYC & Company. Booking.com is the world’s largest accommodation booking site, and will work with NYC & Company to increase tourism and generate additional hotel bookings to New York City.

The analysis on Priceline.com reports that the price is at a 10-year high, its operating margin is expanding and the company’s P/S ratio is nearing a 10-year high.

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

1393282101114.png

Priceline.com has a market cap of $68.5 billion. Its shares are currently trading at around $1313.67 with a P/E ratio of 34.20, a P/S ratio of 9.60 and a P/B ratio of 9.10. The company had an annual average earnings growth of 47.7% over the past ten years.

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

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Rating: 4.3/5 (3 votes)

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