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

May 22, 2014 | About:
Monica Wolfe

Monica Wolfe

119 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 first 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 first quarter is in General Motors. Over the past quarter there were 31 guru owners with 19 gurus making buys and 17 gurus making sells of their stake in the company. These gurus hold a combined weighting of 45.80%.

The top guru shareholders of General Motors:

- Warren Buffett: 30,000,000 shares, representing 2.17% of the company’s shares outstanding.

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

- NWQ Managers: 8,598,061 shares, representing 0.62% 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:

1400792417109.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 $53.58 billion. Its shares are currently trading at around $33.41 with a P/E ratio of 37.70, 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 31 guru shareholders. During the past quarter there were 19 gurus making buys and nine gurus makings sells of their stake in EBAY. These gurus hold on to a combined weighting of 41.04%.

The top guru shareholders of eBay:

1. Carl Icahn (Trades, Portfolio): 27,803,015 shares, representing 2.15% of the company’s shares outstanding.

2. Dodge & Cox: 20,546,804 shares, representing 1.58% of the company’s shares outstanding.

2. Donald Yacktman: 8,220,817 shares, representing 0.64% 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:

1400792902836.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.

eBay has a market cap of $65.27 billion. Its shares are currently trading at around $51.50 with a P/S ratio of 4.10 and a P/B ratio of 3.40. The company had an annual average earnings growth of 16% over the past ten years.

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

Walt Disney (DIS)

The third most held consumer cyclical stock is in Walt Disney with 26 guru owners. There were nine gurus making buys along with 14 guru sells over the past quarter. These gurus hold on to a combined weighting of 23.05%.

The top guru shareholders of Walt Disney:

1. PRIMECAP Management: 9,005,464 shares, representing 0.5% of the company’s shares outstanding.

2. Ken Fisher: 8,045,307 shares, representing 0.45% of the company’s shares outstanding.

3. Chris Shumway: 5,721,012 shares, representing 0.32% 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:

1400793964468.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:

1400794012010.png

Walt Disney has a market cap of $142.62 billion. Its shares are currently trading at around $82.35 with a P/E ratio of 21.40, a P/S ratio of 3.10 and a P/B ratio of 3.10. The company holds a 1.00% dividend yield, and has seen an annual average earnings growth of 10.40% over the past ten years.

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

Priceline (PCLN)

The fourth largest guru-held position goes to Priceline where there are currently 24 guru owners of the company. There were ten gurus making buys and there were 15 gurus making sells of their stake in the company. These gurus hold a combined weighting of 41.52%.

The top guru shareholders of Priceline:

1. Frank Sands: 1,508,687 shares, representing 2.93% of the company’s shares outstanding.

2. Steve Mandel: 884,756 shares, representing 1.72% of the company’s shares outstanding.

3. Chase Coleman: 712,924 shares, representing 1.38% 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:

1400794422005.png

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:

1400794598855.png

Priceline has a market cap of $61.77 billion. Its shares are currently trading at around $1178.06 with a P/E ratio of 31.60, a P/S ratio of 8.80 and a P/B ratio of 8.40. The company had an annual average earnings growth of 54.70% over the past ten years.

McDonald’s (MCD)

The fifth largest guru-held position goes to McDonald’s where there are currently 24 guru owners of the company. There were ten gurus making buys and there were nine gurus making sells of their stake in the company. These gurus hold a combined weighting of 16.54%.

The top guru shareholders of McDonald’s:

  1. Bill Gates (Trades, Portfolio): 10,872,500 shares, representing 1.09% of the company’s shares outstanding.
  2. Jim Simons (Trades, Portfolio): 8,521,387 shares, representing 0.85% of the company’s shares outstanding.
  3. Ken Fisher (Trades, Portfolio): 5,118,180 shares, representing 0.51% of the company’s shares outstanding.
McDonald’s Corporation franchises and operates McDonald's restaurants in the food service industry. The Company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers.

McDonald’s Corp’s historical revenue and net income:

1400795250933.png

The analysis on McDonald’s reports that the company’s operating margin is expanding, its dividend yield is near 3-year high, and its P/E and P/B ratios are trading near historic lows. The analysis also notes that the company’s price is near a 10-year high, it’s revenue per share has slowed down over the past year, and the company has issued $2 billion in debt over the past three years.

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

1400795286623.png

McDonald’s has a market cap of $101.26 billion. Its shares are currently trading at around $102.45 with a P/E ratio of 18.70, a P/S ratio of 3.60 and a P/B ratio of 6.20. The company had an annual average earnings growth of 13.30% over the past ten years.

GuruFocus rated McDonald’s the business predictability rank of 5-star.

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

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