7 Quality Stocks in Gurus' Portfolios

Aetna, Alibaba are on the list

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Dec 21, 2017
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According to the GuruFocus All-in-One Screener, the following stocks have high business predictability ratings and positive total returns since the beginning of the year.

Automatic Data Processing Inc. (ADP)

The provider of miscellaneous business solutions has a market cap of $52.48 billion. GuruFocus gave the company a business predictability rating of 4 out of 5 stars.

The stock has risen 15% since the beginning of the year and is trading with a price-earnings (P/E) ratio of 30.04 The price has been as high as $121.77 and as low as $94.11 over the past 52 weeks. It is currently 2.82% below its 52-week high and 25.75% above its 52-week low. According to the discounted cash flow (DCF) calculator, the stock is overpriced by 175% at $118.34.

Among the gurus invested in the company, Bill Ackman (Trades, Portfolio) is the largest shareholder with 1.98% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 0.7%, Jim Simons (Trades, Portfolio) with 0.49% and First Eagle Investment (Trades, Portfolio) with 0.36%.

Aetna Inc. (AET)

It is a diversified health care benefits company with a market cap of $178.8 billion. GuruFocus gave the company a business predictability rating of 5 out of 5 stars.

The stock has risen 44% since the beginning of the year and is trading with a P/E ratio of 59.9. The price has been as high as $192.37 and as low as $116.04 the past 52 weeks. It is currently 7.05% below its 52-week high and 54.08% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 130% at $178.8.

Among the gurus invested in Aetna, the largest shareholder is Vanguard Health Care Fund (Trades, Portfolio) with 1.42% of outstanding shares, followed by Chris Davis (Trades, Portfolio) with 1.17%, Larry Robbins (Trades, Portfolio) with 1.16% and Diamond Hill Capital (Trades, Portfolio) with 0.5%.

American Financial Group Inc. (AFG)

It is a property and casualty insurance company that operates through its subsidiaries with a market cap of $9.3 billion. GuruFocus gave the company a business predictability rating of 3.5 out of 5 stars.

The stock has risen 20% since the beginning of the year and is trading with a P/E ratio of 13.51. The price has been as high as $106.76 and as low as $85.57 the past 52 weeks. It is currently 1.14% below its 52-week high and 23.35% above its 52-week low. According to the DCF calculator, the stock is overpriced by 5% at $105.55.

With 0.24% of outstanding shares, Simons is the company's largest guru shareholder, followed by Royce with 0.12% and Caxton Associates (Trades, Portfolio) with 0.01%.

Amgen Inc. (AMGN)

The biotechnology company has a market cap of $128.39 billion. GuruFocus gave the company a business predictability rating of 4.5 out of 5 stars.

The stock has risen 21% since the beginning of the year and is trading with a P/E ratio of 15.98. The price has been as high as $191.10 and as low as $145.12 the past 52 weeks. It is currently 7.45% below its 52-week high and 21.88% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 17% at $176.87.

Among the gurus invested in Amgen, the largest shareholder is PRIMECAP Management (Trades, Portfolio) with 3.07% of outstanding shares, followed by Simons with 0.54% and David Carlson (Trades, Portfolio) with 0.06%.

Alibaba Group Holding Ltd. ADR (BABA)

The online and mobile commerce company has a market cap of $439.48 billion. GuruFocus gave the company a business predictability rating of 4 out of 5 stars.

The stock has risen 95% since the beginning of the year and is trading with a P/E ratio of 49.51. The price has been as high as $191.75 and as low as $86.01 the past 52 weeks. It is currently 10.68% below its 52-week high and 99.14% above its 52-week low. According to the DCF calculator, the stock is overpriced by 362% at $171.28.

With 0.6% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Frank Sands (Trades, Portfolio) with 0.58%, Kevin Fisher with 0.4% and Steve Mandel (Trades, Portfolio) with 0.34%.

Brookfield Asset Management Inc. (BAM)

The alternative asset management company has a market cap of $41.64 billion. GuruFocus gave the company a business predictability rating of 5 out of 5 stars.

The stock has risen 32% since the beginning of the year and is trading with a P/E ratio of 97.12 The price has been as high as $44.33 and as low as $32.65 the past 52 weeks. It is currently 2.08% below its 52-week high and 32.96% above its 52-week low. According to the DCF calculator, the stock is overpriced by 414% at $43.41.

Among the gurus invested in Brookfield, the largest shareholder is Lou Simpson (Trades, Portfolio) with 0.9% of outstanding shares, followed by Tom Gayner (Trades, Portfolio) with 0.63% and Third Avenue Management (Trades, Portfolio) with 0.5%.

Becton, Dickinson and Co. (BDX)

The health care company has a market cap of $50.46 billion. GuruFocus gave the company a business predictability rating of 4 out of 5 stars.

The stock has risen 34% since the beginning of the year and is trading with a P/E ratio of 47.60. The price has been as high as $229.68 and as low as $161.50 the past 52 weeks. It is currently 3.64% below its 52-week high and 37.05% above its 52-week low. According to the DCF calculator, the stock is overpriced by 345% at $221.33.

With 0.66% of outstanding shares, Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.37%, Jeremy Grantham (Trades, Portfolio) with 0.24% and Simons with 0.07%.

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