High Quality Guru Stocks: EMC, Bed Bath & Beyond

These stocks have high business predictability ratings

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May 24, 2016
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According to GuruFocus’ All-in-One Screener, the following stocks have high business predictability ratings, and at least five gurus are shareholders in the companies.

ResMed Inc. (RMD)

GuruFocus gives the company a business predictability of 4.5 out of 5 stars. It is a developer, manufacturer and distributor of medical products for treating, diagnosing and managing sleep-disordered breathing and other respiratory disorders.

The stock is trading with a P/E ratio of 23.37, and the price has been as high as $61.23 and as low as $48.99 in the last 52 weeks. It is 6.53% below its 52-week high and 15.92% above its 52-week low. According to the DCF calculator, the company looks undervalued with a margin of safety of 18%.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.91% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 0.24%, Joel Greenblatt (Trades, Portfolio) with 0.08%, Ray Dalio (Trades, Portfolio) with 0.04%, Paul Tudor Jones (Trades, Portfolio) with 0.01% and Ken Fisher (Trades, Portfolio) with 0.01%.

EMC Corp. (EMC)

GuruFocus gives the company a business predictability of 4.5 out of 5 stars. The company supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS).

The stock is trading with a P/E ratio of 26.88, and the price has been as high as $28.77 and as low as $22.66 the last 52 weeks. It is 4.45% below its 52-week high and 21.32% above its 52-week low. According to the DCF calculator, the stock is overpriced by 41%.

Dodge & Cox is the company's largest shareholder among the gurus with 4.73% of outstanding shares followed by Seth Klarman (Trades, Portfolio) with 2.65%, Paul Singer (Trades, Portfolio) with 2.15%, PRIMECAP Management (Trades, Portfolio) with 1.72%, Eric Mindich (Trades, Portfolio) with 0.8% and Jeremy Grantham (Trades, Portfolio) with 0.73%.

Bed Bath & Beyond Inc. (BBBY)

GuruFocus gives the company a business predictability of 5 out of 5 stars. The company operates a chain of retail stores. It operates under the names Bed Bath & Beyond, Christmas Tree Shops, Harmon and Harmon Face Values, buybuy BABY & World Market or Cost Plus World Market.

The stock is trading with a P/E ratio of 8.29, and the price has been as high as $74.10 and as low as $41.26 in the last 52 weeks. It is 42.43% below its 52-week high and 3.39% above its 52-week low. According to the DCF calculator, the stock looks undervalued with a margin of safety of 54%.

The company’s largest shareholder among the gurus is HOTCHKIS & WILEY with 4.87% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 2.71%, Grantham with 1.12%, Chuck Royce (Trades, Portfolio) with 0.99%, Dalio with 0.3%, Meridian Funds (Trades, Portfolio) with 0.28% and Greenblatt with 0.14%.

Citrix Systems Inc. (CTXS)

GuruFocus gives the company a business predictability of 5 out of 5 stars. The company provides virtualization, networking and cloud infrastructure solutions. The company designs, develops and markets technology solutions that enable information technology services.

The stock is trading with a P/E ratio of 34.61, and the price has been as high as $90 and as low as $60.91 in the last 52 weeks. It is 8.69% below its 52-week high and 34.92% above its 52-week low. According to the DCF calculator, the stock is overpriced by 162%.

Singer is the company's largest shareholder among the gurus with 4.32% of outstanding shares followed by Meridian Funds (Trades, Portfolio) with 0.37%, Greenblatt with 0.26%, Pioneer Investments (Trades, Portfolio) with 0.25%, Grantham with 0.22%, Simons with 0.13% and John Hussman (Trades, Portfolio) with 0.08%.

Whole Foods Market Inc. (WFM)

GuruFocus gives the company a business predictability of 5 out of 5 stars. The company is a retailer of natural and organic foods and a certified organic grocer. Its products include seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea.

The stock is trading with a P/E ratio of 20.32, and the price has been as high as $42.92 and as low as $28.07 in the last 52 weeks. It is 29.51% below its 52-week high and 7.78% above its 52-week low. According to the DCF calculator, the stock is overpriced by 7%.

The company’s largest shareholder among the gurus is Frank Sands (Trades, Portfolio) with 2.58% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.52%, Jerome Dodson (Trades, Portfolio) with 0.33%, Greenblatt with 0.19%, Chris Davis (Trades, Portfolio) with 0.08%, Simons with 0.08% and RS Investment Management (Trades, Portfolio) with 0.06%.

Ralph Lauren Corp. (RL)

GuruFocus gives the company a business predictability of 5 out of 5 stars. The company designs, markets and distributes men's, women's and children's apparel, accessories, fragrances and home furnishings. Its segments include Wholesale, Retail and Licensing.

The stock is trading with a P/E ratio of 18.93, and the price has been as high as $141.03 and as low as $82.15 in the last 52 weeks. It is 37.98% below its 52-week high and 6.46% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 8%.

Third Avenue Management (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.27% of outstanding shares followed by Dalio with 0.24%, Greenblatt with 0.18%, Martin Whitman (Trades, Portfolio) with 0.14%, Cohen with 0.1%, Robert Olstein (Trades, Portfolio) with 0.07% and Royce with 0.06%.

UnitedHealth Group Inc. (UNH)

GuruFocus gives the company a business predictability of 5 out of 5 stars. The company designs products, provides services and applies technologies that improve access to health and well-being services, simplify the health care experience and make health care more affordable.

The stock is trading with a P/E ratio of 20.86, and the price has been as high as $135.11 and as low as $95 in the last 52 weeks. It is 3.89% below its 52-week high and 36.68% above its 52-week low. According to the DCF calculator, the stock is overpriced by 43%.

The company’s largest shareholder among the gurus is Vanguard Health Care Fund (Trades, Portfolio) with 2.47% of outstanding shares followed by Dodge & Cox with 1.6%, Grantham with 0.51%, Davis with 0.4%, Barrow, Hanley, Mewhinney & Strauss with 0.36%, Bill Nygren (Trades, Portfolio) with 0.27% and Sarah Ketterer (Trades, Portfolio) with 0.12%.

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