According to GuruFocus' All-in-One screener, the following stocks were three of the most popular among the gurus during the past three months.
Related Article: Stocks Gurus Are Buying - Part I
Allergan PLC (AGN)
The company develops, manufactures and distributes over-the-counter and generic prescription pharmaceuticals, nutritional products and active pharmaceutical ingredients. AGN is an integrated specialty pharmaceutical company which is engaged in development, manufacturing, marketing, sale and distribution of generic, branded generic, brand name, biosimilar and over-the-counter pharmaceutical products. It also develops and out-license generic pharmaceutical products in Europe through its Medis third-party business. It operates in three segments: Pharma, Specialty Brands and Anda Distribution. It has a market cap of $126.46 billion.
AGN is trading few cents above $320 with a forward P/E of 16.34. During the last year, the price has risen by 47% and it has been as high as $340.34 and as low as $208.64.
During the last five years, revenue rose by 22.30%, EBITDA by 3.80% and EPS was almost null.
In the second quarter, revenue of $5.80 billion was up 116% year-over-year and surpassed analysts’ estimates of $5.70 billion. This increase was mainly propelled by the company's branded drugs portfolio, with the highest revenue contributed by Botox. Also adjusted gross profit increased by 63%. All these results clearly indicate that the acquisition of Allergan and Forest Laboratories have already started paying off.
During the last three months, the company has been bought by 17 gurus and hedge funds, and the main holder is Vanguard Health Care Fund (Trades, Portfolio) who holds 2.3% of shares outstanding, followed by John Paulson (Trades, Portfolio) with 1.82%, and Andreas Halvorsen (Trades, Portfolio) who holds 1.73% of outstanding shares.
Google Inc (GOOGL)
The company is a technology company engaged in improving the ways people connect with information. The Company's business is mainly around the following areas: search, display advertising, operating systems and platforms, enterprise and hardware products. It has a market cap of $475.84 billion.
GOOGL is trading a few dollars below $700 with a trailing 12-month P/E multiple of 32.82 and a forward P/E of 20.79. During the last year, the price has risen by 16% and it has been as high as $713.33 and as low as $490.91.
The DCF model gives a fair value of $569.08 that put the stock as overpriced by 21%. The Peter Lynch earnings line suggests a lower fair price of $300.2, while 16 GuruFocus users give a fair price of $605.
During the last five years, revenue rose by 26.10%, EBITDA by 19.20% and EPS by 17.10.
GOOGL's next update for Android will be called Marshmallow, which was known as Android M and announced a few months ago at the Google I/O. This new Android update is expected to be released this coming fall.
In its second quarter, the company had revenue growth of 11% year over year and constant currency revenue growth of 18% year over year. These strong Q2 results reflect continued growth across the breadth of their products.
The company is currently held by 13 gurus, and the main holder is Andreas Halvorsen (Trades, Portfolio) who holds 0.40% of shares outstanding, followed by PRIMECAP Management (Trades, Portfolio) that holds 0.39% of shares outstanding, and Frank Sands (Trades, Portfolio) who holds 0.31% of outstanding shares of GOOGL.
Time Warner Inc (TWX)
Time Warner is a media and entertainment company. It operates its business in four segments which includes Turner, Home Box Office, Warner Bros and Time Inc. It has a market cap of $64.76 billion.
TWX is trading at about $79 with a trailing 12-month P/E multiple of 18.69 and a forward P/E of 13.55. During the last year, the price has risen by 3% and it has been as high as $91.34 and as low as $67.78.
During the last five years, revenue rose by 8.30%, EBITDA dropped by 0.90% and EPS was almost null.
The company had a very strong second quarter in which revenues increased 8% and adjusted operating income and operating income margins were both 25% in the second quarter compared to 24% and 23%, respectively, in the prior year quarter. These strong results were achieved at a time when they were investing aggressively to position the company for continued growth, including the successful launch of HBO NOW.
The company is currently held by 12 gurus, and the main shareholder is Dodge & Cox that holds 4.56% of shares, followed by Manning & Napier Advisors which holds 0.66% of shares outstanding, and Jana Partners (Trades, Portfolio) with 0.57%.
