High Quality Stocks Gurus Are Buying

Chevron and Exxon Mobil have high business predictability, but are overpriced

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Feb 08, 2016
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According to GuruFocus’ All-in-One Screener, the following stocks have a high business predictability rating, and at least five gurus are shareholders of the companies.

Anthem Inc. (ANTM)

GuruFocus gives the company a business predictability of 4 out of 5 stars. The company offers a spectrum of network-based managed care plans to the large and small employer, individual, Medicaid and senior markets.

The stock is trading with a P/E ratio of 11.80, and the price has been as high as $173.59 and as low as $122.77 in the last 52 weeks. It is currently 28.92% below its 52-week high and 0.50% above its 52-week low. According to the DCF calculator, the company looks undervalued with a margin of safety of 23%.

James Barrow (Trades, Portfolio) is the largest shareholder of the company among the gurus with 2.89% of outstanding shares, followed by Andreas Halvorsen (Trades, Portfolio) with 2.27%, Larry Robbins (Trades, Portfolio) with 1.63%, Vanguard Health Care Fund (Trades, Portfolio) with 1.35% and HOTCHKIS & WILEY with 0.89%.

Chevron Corp. (CVX)

GuruFocus gives the company a business predictability of 4 out of 5 stars. The company manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to U.S. and international subsidiaries that engage in fully integrated petroleum operations, chemicals operations, mining operations, and power and energy services.

The stock is trading with a P/E ratio of 18, and the price has been as high as $112.93 and as low as $69.58 in the last 52 weeks. It is currently 26.61% below its 52-week high and 19.11% above its 52-week low. According to the DCF calculator, the company looks overpriced by 187%.

The company’s largest shareholder among the gurus is Jeremy Grantham (Trades, Portfolio) with 0.19% of outstanding shares, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.18%, Ken Fisher (Trades, Portfolio) with 0.15%, Pioneer Investments (Trades, Portfolio) with 0.1% and Sarah Ketterer (Trades, Portfolio) with 0.09%.

Exxon Mobil Corporation (XOM)

GuruFocus gives the company a business predictability of 4 out of 5 stars. The company'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.

The stock is trading with a P/E ratio of 16.90, and the price has been as high as $93.45 and as low as $66.55 in the last 52 weeks. It is currently 14.31% below its 52-week high and 20.33% above its 52-week low. According to the DCF calculator, the company looks overpriced by 93%.

T Rowe Price Equity Income Fund (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.16% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.15%, Donald Yacktman (Trades, Portfolio) with 0.14%, Ken Fisher (Trades, Portfolio) with 0.13%, Yacktman Fund (Trades, Portfolio) with 0.03% and Yacktman Focused Fund (Trades, Portfolio) with 0.03%.

Emerson Electric Co. (EMR)

GuruFocus gives the company a business predictability of 4 out of 5 stars. The company is engaged in designing and supplying product technology and delivering engineering services in industrial, commercial and consumer markets.

The stock is trading with a P/E ratio of 12.40, and the price has been as high as $62.75 and as low as $41.25 in the last 52 weeks. It is currently 25.24% below its 52-week high and 13.72% above its 52-week low. According to the DCF calculator, the company looks overpriced by 13%.

The largest shareholder among the gurus is T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.81% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.61%, Mairs and Power (Trades, Portfolio) with 0.55%, Jeremy Grantham (Trades, Portfolio) with 0.55%, Charles Brandes (Trades, Portfolio) with 0.39%, Tweedy Browne (Trades, Portfolio) with 0.27% and Charles de Vaulx (Trades, Portfolio) with 0.26%.

Cisco Systems Inc. (CSCO)

GuruFocus gives the company a business predictability of 4 out of 5 stars. The company is engaged in designing, manufacturing and selling of Internet Protocol-based networking products and services related to the communications and information technology industry and provide services associated with these products and their use.

The stock is trading with a P/E ratio of 12.30, and the price has been as high as $30.31 and as low as $22.47 in the last 52 weeks. It is currently 24.48% below its 52-week high and 1.87% above its 52-week low. According to the DCF calculator, the company looks overpriced by 2%.

Dodge & Cox is the largest shareholder of the company among the gurus with 1.33% of outstanding shares, followed by Donald Yacktman (Trades, Portfolio) with 0.71%, Jeremy Grantham (Trades, Portfolio) with 0.69%, PRIMECAP Management (Trades, Portfolio) with 0.49% and Yacktman Fund (Trades, Portfolio) with 0.32%.

Trimble Navigation Ltd. (TRMB)

GuruFocus gives the company a business predictability of 5 out of 5 stars. The company provides integrated positioning, wireless, and software technology solutions that enable field and mobile workers to be more productive.

The stock is trading with a P/E ratio of 33.10, and the price has been as high as $27.61 and as low as $15.90 in the last 52 weeks. It is currently 30.06% below its 52-week high and 21.45% above its 52-week low. According to the DCF calculator, the company looks overpriced by 136%.

The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 5.27% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 1.33%, Columbia Wanger (Trades, Portfolio) with 0.77%, Meridian Funds (Trades, Portfolio) with 0.7% and Manning & Napier Advisors, Inc with 0.39%.

Sherwin-Williams Co. (SHW)

GuruFocus gives the company a business predictability of 4 out of 5 stars. The company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers mainly in North and South America with additional operations in the Caribbean region, Europe and Asia.

The stock is trading with a P/E ratio of 24.50, and the price has been as high as $294.35 and as low as $218.27 in the last 52 weeks. It is currently 12.99% below its 52-week high and 17.34% above its 52-week low. According to the DCF calculator, the company looks overpriced by 70%.

Eric Mindich (Trades, Portfolio) is the largest shareholder among the gurus with 1.2% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.56%, Pioneer Investments (Trades, Portfolio) with 0.06%, Meridian Funds (Trades, Portfolio) with 0.06% and Ray Dalio (Trades, Portfolio) with 0.04%.

Parker Hannifin Corp. (PH)

GuruFocus gives the company a business predictability of 4 out of 5 stars. The company is a diversified manufacturer of motion and control technologies and systems, providing precision engineered solutions for mobile, industrial and aerospace markets.

The stock is trading with a P/E ratio of 15.60, and the price has been as high as $125.94 and as low as $83.32 in the last 52 weeks. It is currently 19.40% below its 52-week high and 21.83% above its 52-week low. According to the DCF calculator, the company looks overpriced by 24%.

The largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 2.59% of outstanding shares, followed by HOTCHKIS & WILEY with 1.87%, Diamond Hill Capital (Trades, Portfolio) with 1.8%, Bill Nygren (Trades, Portfolio) with 1.64% and Joel Greenblatt (Trades, Portfolio) with 0.47%.

Qualcomm Inc. (QCOM)

GuruFocus gives the company a business predictability of 4 out of 5 stars. The company develops & commercializes digital communication technology called CDMA (Code Division Multiple Access), and owns intellectual property applicable to products that implement any version of CDMA including patents, patent applications and trade secrets.

The stock is trading with a P/E ratio of 14.60, and the price has been as high as $74.09 and as low as $42.88 in the last 52 weeks. It is currently 40.59% below its 52-week high and 2.66% above its 52-week low. According to the DCF calculator, the company looks undervalued with a margin of safety of 18%.

Jana Partners (Trades, Portfolio) is the largest shareholder among the gurus with 1.91% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 1.23%, PRIMECAP Management (Trades, Portfolio) with 1.09%, Jeremy Grantham (Trades, Portfolio) with 0.66% and David Rolfe (Trades, Portfolio) with 0.64%.