Gurus Are Buying These 4-Star Stocks

Companies with high predictability ratings

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Apr 17, 2017
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According to GuruFocus’ All-in-One Screener, the following stocks have high business predictability ratings, and total return since the beginning of the year is positive. At least five gurus are shareholders in the companies.

Check Point Software Technologies Ltd. (CHKP)

GuruFocus gives the company a business predictability rating of 4 out of 5. The stock has risen by 22.6% during the last 12 months. It develops and markets software and combined hardware and software products and services for information technology security.

The stock is trading with a price-earnings (P/E) ratio of 24.69. The price has been as high as $104.64 and as low as $74.34 the last 52 weeks. It is 1.06% below its 52-week high and 39.27% above its 52-week low. According to the DCF calculator, the stock is overpriced by 25% at $103.53.

Seven hedge funds hold the company for a total of 2.5 million shares. Jeremy Grantham (Trades, Portfolio) is the largest shareholder among the gurus with 0.93% of outstanding shares followed by Westport Asset Management (Trades, Portfolio) with 0.21%, Pioneer Investments (Trades, Portfolio) with 0.16%, David Herro (Trades, Portfolio) with 0.12%, RS Investment Management (Trades, Portfolio) with 0.11%, Ken Fisher (Trades, Portfolio) with 0.02% and Ron Baron (Trades, Portfolio) with 0.01%.

Cigna Corp. (CI)

GuruFocus gives the company a business predictability rating of 4.5 out of 5. The stock has risen by 12.8% during the last 12 months. It is a health services organization. The company provides medical, dental, disability, life and accident insurance and related products and services.

The stock is trading with a P/E ratio of 20.89. The price has been as high as $154.83 and as low as $115.03 the last 52 weeks. It is 2.85% below its 52-week high and 30.76% above its 52-week low. According to the DCF calculator, the stock is overpriced by 20% at $150.41.

Eight hedge funds hold the company for a total of 16.9 million shares. The largest shareholder among the gurus is Dodge & Cox with 5.46% of outstanding shares followed by Vanguard Health Care Fund (Trades, Portfolio) with 3.04%, Larry Robbins (Trades, Portfolio) with 2.21%, Richard Pzena (Trades, Portfolio) with 0.9%, Lee Ainslie (Trades, Portfolio) with 0.76% and Barrow, Hanley, Mewhinney & Strauss with 0.78%.

Comcast Corp. Class AĂ‚ (CMCSA)

GuruFocus gives the company a business predictability rating of 4.5 out of 5. The stock has risen by 8% during the last 12 months. It is a media and technology company with two operations, Comcast Cable and NBC Universal.

The stock is trading with a P/E ratio of 20.75, and the price has been as high as $38.44 and as low as $29.81 the last 52 weeks. It is 3.37% below its 52-week high and 24.59% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 25% at $37.14.

Seventeen hedge funds hold the company for a total of 88 million shares. Dodge & Cox is the largest shareholder among the gurus with 1.61% of outstanding shares followed by First Eagle Investment (Trades, Portfolio) with 0.94%, Fisher with 0.53%, HOTCHKIS & WILEY with 0.18%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.16%, Diamond Hill Capital (Trades, Portfolio) with 0.16% and Tom Russo (Trades, Portfolio) with 0.15%.

Costco Wholesale Corp. (COST)

GuruFocus gives the company a business predictability rating of 5 out of 5. The stock has risen by 5.7% during the last 12 months. It offers its members low prices on a limited selection of nationally branded and select private-label products in merchandise categories.

The stock is trading with a P/E ratio of 31.15. The price has been as high as $178.71 and as low as $138.57 the last 52 weeks. It is 5.52% below its 52-week high and 21.84% above its 52-week low. According to the DCF calculator, the stock is overpriced by 111% at $168.84.

Nine hedge funds hold the company for a total of 3.7 million shares. The largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 0.99% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.64%, Spiros Segalas (Trades, Portfolio) with 0.5%, Chris Davis (Trades, Portfolio) with 0.42%, Grantham with 0.27% and Ruane Cunniff (Trades, Portfolio) with 0.1%.

Cisco Systems Inc. (CSCO)

GuruFocus gives the company a business predictability rating of 4 out of 5. The stock has risen by 9.1% during the last 12 months. It is engaged in designing, manufacturing and sales of Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry.

The stock is trading with a P/E ratio of 16.71. The price has been as high as $34.53 and as low as $25.81 the last 52 weeks. It is 6.11% below its 52-week high and 25.61% above its 52-week low. According to the DCF calculator, the stock is overpriced by 37% at $32.42.

Twenty-eight hedge funds hold the company for a total of 201 million shares. Dodge & Cox is the largest shareholder among the gurus with 1.29% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.54%, Donald Yacktman (Trades, Portfolio) with 0.5%, Grantham with 0.35%, Fisher with 0.31%, First Pacific Advisors (Trades, Portfolio) with 0.3%, Yacktman Fund (Trades, Portfolio) with 0.27%, Tweedy Browne (Trades, Portfolio) with 0.23% and Diamond Hill Capital with 0.21%.

Ecolab Inc. (ECL)

GuruFocus gives the company a business predictability rating of 4 out of 5. The stock has risen by 6.5% during the last 12 months. It develops and markets cleaning and sanitizing premium programs, products and services for the hospitality, foodservice, health care, industrial and energy markets.

The stock is trading with a P/E ratio of 30.07. The price has been as high as $127.06 and as low as $110.65 the last 52 weeks. It is 2.04% below its 52-week high and 12.49% above its 52-week low. According to the DCF calculator, the stock is overpriced by 90% at $124.47.

Five hedge funds hold the company for a total of 6.6 million shares. The largest shareholder among the gurus is Bill Gates (Trades, Portfolio) with 1.51% of outstanding shares followed by Mairs and Power (Trades, Portfolio) with 0.88%, Pioneer Investments with 0.77%, Davis with 0.6% and Mario Gabelli (Trades, Portfolio) with 0.12%.

Alphabet Inc. Class CĂ‚ (GOOG)

GuruFocus gives the company a business predictability rating of 4 out of 5. The stock has risen by 6.7% during the last 12 months. Through its subsidiary Google Inc. it is engaged in improving the ways people connect with information and products including Search, Android, YouTube, Apps, Maps and Ads. It also produces internet-connected home devices and provides internet services.

The stock is trading with a P/E ratio of 30.16. The price has been as high as $853.50 and as low as $663.28 the last 52 weeks. It is 3.51% below its 52-week high and 24.16% above its 52-week low. According to the DCF calculator, the stock is overpriced by 17% at $823.56.

Twenty-two hedge funds hold the company for a total of 11 million shares. Dodge & Cox is the largest shareholder among the gurus with 0.45% of outstanding shares followed by PRIMECAP Management with 0.35%, Davis with 0.19%, Andreas Halvorsen (Trades, Portfolio) with 0.16%, Mason Hawkins (Trades, Portfolio) with 0.14%, Segalas with 0.13%, Frank Sands (Trades, Portfolio) with 0.12%, Pioneer Investments with 0.11% and Bill Nygren (Trades, Portfolio) with 0.09%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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