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

August 23, 2014 | About:
Monica Wolfe

Monica Wolfe

131 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 second quarter, the following five companies are held by the largest number of gurus.

eBay Inc (EBAY)

The most-held consumer cyclical company is eBay with 31 guru shareholders. During the past quarter there were 23 gurus making buys and seven gurus makings sells of their stake in EBAY. These gurus hold on to a combined weighting of 40.98%.

The top guru shareholders of eBay:

1. Carl Icahn (Trades, Portfolio): 30,803,015 shares, representing 2.43% of the company’s shares outstanding and 4.7% of Icahn’s total portfolio.

2. Dodge & Cox: 23,344,404 shares, representing 1.54% of the company’s shares outstanding.

2. Donald Yacktman: 8,232,534 shares, representing 0.65% of the company’s shares outstanding and 1.7% of the guru’s total portfolio.

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:

1408819014352.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 $68.89 billion. Its shares are currently trading at around $55.50 with a P/S ratio of 4.20 and a P/B ratio of 3.71. The company had an annual average earnings growth of 16.10% over the past ten years.

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

General Motors (GM)

The second most guru-held consumer cyclical stock of the second quarter is in General Motors. Over the past quarter there were 30 guru owners with 16 gurus making buys and 16 gurus making sells of their stake in the company. These gurus hold a combined weighting of 50.85%.

The top guru shareholders of General Motors:

- Warren Buffett: 32,960,056 shares, representing 2.06% of the company’s shares outstanding.

- David Tepper (Trades, Portfolio): 12,982,349 shares, representing 0.81% of the company’s shares outstanding.

- HOTCHKIS & WILEY: 7,886,532 shares, representing 0.49% 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:

1408820010895.png

The analysis on General Motors reports that the company’s revenue has been in decline over the past five years, its dividend yield is near a 1-year high and it has issued $12.8 billion of debt over the past three years.

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

1408822476601.png

General Motors has a market cap of $54.94 billion. Its shares are currently trading at around $33.41 with a P/E ratio of 138.60, a P/S ratio of 0.37 and a P/B ratio of 1.41.

Walt Disney (DIS)

The third most held consumer cyclical stock is in Walt Disney with 29 guru owners. There were twelve gurus making buys along with eleven guru sells over the past quarter. These gurus hold on to a combined weighting of 25.20%.

The top guru shareholders of Walt Disney:

1. PRIMECAP Management: 8,873,864 shares, representing 0.51% of the company’s shares outstanding.

2. Ken Fisher: 8,441,997 shares, representing 0.49% of the company’s shares outstanding.

3. Chris Shumway (Trades, Portfolio): 5,721,012 shares, representing 0.33% 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:

1408822887698.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:

1408822942210.png

Walt Disney has a market cap of $155.33 billion. Its shares are currently trading at around $90.49 with a P/E ratio of 23.20, a P/S ratio of 3.45 and a P/B ratio of 3.10. The company holds a 0.95% dividend yield, and has seen an annual average earnings growth of 10.60% over the past ten years.

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

Twenty-First Century Fox (FOXA)

The fourth largest guru-held position goes to Twenty-First Century Fox where there are currently 23 guru owners of the company. There were nine gurus making buys and there were 13 gurus making sells of their stake in the company. These gurus hold a combined weighting of 39.03%.

The top guru shareholders of Priceline:

1. Dodge & Cox: 46,620,129 shares, representing 2.09% of the company’s shares outstanding.

2. Donald Yacktman (Trades, Portfolio): 44,223,525 shares, representing 1.99% of the company’s shares outstanding.

3. Yacktman Fund (Trades, Portfolio): 20,950,000 shares, representing 0.94% of the company’s shares outstanding.

Twenty-First Century Fox is a diversified media and entertainment company. Its segments include Cable Network Programming, Television, Filmed Entertainment and Direct Broadcast Satellite Television.

Twenty-First Century Fox’s historical revenue and net income:

1408823595660.png

The analysis on Twenty-First Century Fox reports that the company’s price is near a 10-year high, its revenue per share has declined over the past five years and its cash flow from operations has severe divergence from the reported net income.

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

1408823710655.png

Twenty-First Century Fox has a market cap of $78.16 billion. Its shares are currently trading at around $35.69 with a P/E ratio of 25.90 and a P/S ratio of 2.67. The dividend yield of the company is at 0.70%.

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 1.1% of the company’s shares outstanding.
  2. Jim Simons (Trades, Portfolio): 8,293,900 shares, representing 0.84% of the company’s shares outstanding.
  3. Jeremy Grantham (Trades, Portfolio): 4,466,272 shares, representing 0.45% 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:

1408824109420.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:

1408824141744.png

McDonald’s has a market cap of $92.74 billion. Its shares are currently trading at around $94.45 with a P/E ratio of 17.10, a P/S ratio of 3.36 and a P/B ratio of 6.20. The company had an annual average earnings growth of 13.40% over the past ten years.

GuruFocus rated McDonald’s the business predictability rank of 4.5-star.

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

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