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Top Five Mega-Cap Stocks That Gurus Like

June 25, 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 mega cap companies which are held by the most gurus. The following five mega-capped companies are held by the largest number of gurus during the past quarter.

Microsoft Corp (MSFT)

As of the close of the first quarter there were 59 guru owners of Microsoft. During the past quarter there were 22 gurus buying shares of MSFT and there were 30 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 146.80%.

Top three guru shareholders of Microsoft:

1. Dodge & Cox: 85,845,688 shares, representing 1.03% of the company’s shares outstanding and 3.6% of their assets managed.

2. Jeff Ubben (Trades, Portfolio): 71,285,530 shares, representing 0.86% of the company’s shares outstanding and 22.1% of his total portfolio.

3. PRIMECAP Management (Trades, Portfolio): 64,191,731 shares, representing 0.77% of the company’s shares outstanding and 3% of their total portfolio holdings.

Microsoft develops, manufactures, licenses and supports a wide range of software products and services for many different types of computing devices.

Microsoft’s historical revenue and net income:

1403729654923.png

The analysis on Microsoft reports that the company’s price is near a 10-year high, its gross and operating margins have been in a 5-year decline and its interest coverage is comfortable, meaning they have enough cash to cover all debt. The company has also shown predictable revenue and earnings growth.

The Peter Lynch chart shows that Microsoft currently appears to be overvalued:

1403729734964.png

Microsoft has a market cap of $347.14 billion. Its shares are currently trading at around $42.03 with a P/E ratio of 15.30, a P/S ratio of 4.20 and a P/B ratio of 4.00. The company has a dividend yield of 2.70%. The company has also seen average earnings growth of 14.80% over the past ten years.

GuruFocus rated Microsoft the business predictability rank of 3.5-star.

Wells Fargo (WFC)

As of the close of the first quarter there were 45 guru owners of Wells Fargo. During the past quarter there were 17 gurus buying shares of WFC and there were 20 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 166.87%.

Top three guru shareholders of Wells Fargo:

1. Warren Buffett (Trades, Portfolio): 463,458,123 shares, representing 8.73% of the company’s shares outstanding and 21.8% of the fund’s total portfolio.

2. Dodge & Cox: 72,553,999 shares, representing 1.37% of the company’s shares outstanding and 3.7% of his total portfolio

3. Chris Davis (Trades, Portfolio): 57,060,078 shares, representing 0.96% of the company’s shares outstanding and 7% of his total portfolio.

Wells Fargo is a financial services companies, providing a range of retail banking and brokerage, asset and wealth management and corporate and investment banking products and services to customers.

Wells Fargo’s historical revenue and net income:

1403728880846.png

The analysis on Wells Fargo reports that the company’s operating margin is expanding, its dividend yield is close to a 3-year high, its price is near a 10-year high and its revenue has been in decline over the past three years.

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

1403729099448.png

Wells Fargo has a market cap of $277.15 billion. Its shares were traded at around $52.62 with a P/E ratio of 13.10, a P/S ratio of 3.40 and a P/B ratio of 1.80. The company offers a dividend yield of 2.40%. Wells Fargo had an annual average earnings growth of 4.60% over the past ten years.

Johnson & Johnson (JNJ)

As of the close of the first quarter there were 44 guru owners of Johnson & Johnson. During the past quarter there were 17 gurus buying shares of JNJ and there were 19 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 63.75%.

Top three guru shareholders of Johnson & Johnson:

1. Jeremy Grantham: 17,574,048 shares, representing 0.62% of the company’s shares outstanding

2. James Barrow: 16,953,029 shares, representing 0.6% of the company’s shares outstanding.

3. PRIMECAP: 12,300,986 shares, representing 0.44% of the company’s shares outstanding.

Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the health care field. It is a holding company which has more than 250 operating companies. The company’s operating segments are focused in: consumer, pharmaceutical and medical devices and diagnostics.

Johnson & Johnson’s historical revenue and net income:

1403730552861.png

The analysis on Johnson & Johnson reports that the company’s operating margin is expanding, its dividend yield is near a 5-year low and its price is near a 10-year high.

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

1403730533833.png

Johnson & Johnson has a market cap of $299.21 billion. Its shares are currently trading at around $105.76 with a P/E ratio of 20.10, a P/S ratio of 4.19 and a P/B ratio of 3.90. The dividend yield of Johnson & Johnson is currently at 2.50%. Johnson & Johnson had an annual average earnings growth of 3.50% over the past ten years.

Google (GOOG)

As of the close of the first quarter there were 43 guru owners of Google. During the past quarter there were 11 gurus buying shares of GOOG and there were 27 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 62.59%.

Top three guru shareholders of Google:

1. PRIMECAP Management (Trades, Portfolio): 2,582,476 shares, representing 1.5% of their total portfolio.

2. Frank Sands (Trades, Portfolio): 2,406,747 shares, representing 3.3% of his total portfolio.

3. Chris Davis (Trades, Portfolio): 2,126,162 shares, representing 3.1% of his total assets managed.

Google is a global technology company engaged in improving the ways people connect with information. The company's business is mainly focused around the following key areas: search, advertising, operating systems and platforms, enterprise and hardware products.

Google’s historical revenue and net income:

1403730069449.png

The analysis on Google reports that the company’s price is near a 10-year high, the company has issued $5 billion of debt over the past three years, its interest coverage is comfortable and it’s shown signs of predictable revenue and earnings growth.

Google has a market cap of $357.33 billion. Its shares are currently trading at around $529.77 with a P/E ratio of 28.10, a P/S ratio of 5.70 and a P/B ratio of 3.90. The company had an annual average earnings growth of 32.30% over the past 10 years.

GuruFocus rated Google the business predictability rank of 3-star.

Exxon Mobil Corporation (XOM)

As of the close of the first quarter there were 43 guru owners of Exxon Mobil. During the past quarter there were 14 gurus buying shares of XOM and there were 19 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 49.38%.

Top three guru shareholders of Exxon Mobil Corp:

1. Warren Buffett (Trades, Portfolio): 41,129,643 shares, representing 0.93% of the company’s shares outstanding and 3.8% of Buffett’s portfolio.

2. Bill Gates (Trades, Portfolio): 8,143,858 shares, representing 0.19% of the company’s shares outstanding and 4% of Gates’ total assets managed.

3. Donald Yacktman (Trades, Portfolio): 7,259,074 shares, representing 0.16% of the company’s shares outstanding and 4.1% of the company’s shares outstanding.

Exxon Mobil’s main business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products.

Exxon Mobil’s historical revenue and net income:

1403730221358.png

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

1403730239837.png

Exxon Mobil has a market cap of $438.24 billion. Its shares are currently trading at around $102.05 with a P/E ratio of 14.10 and a P/S ratio of 1.00. The company had an annual average earnings growth of 7.40% 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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