7 Quality Stocks in Gurus' Portfolios

Dollar Tree, Dorman Products top the list

Author's Avatar
Jan 16, 2018
Article's Main Image

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.

Dollar General Corp. (DG)

The discount retailer has a market cap of $26.91 billion. GuruFocus gives the company a business predictability rating of 3.5 out of 5 stars.

The stock has gained 6.8% over the past six months and is trading with a price-earnings (P/E) ratio of 21.97. The price has been as high as $99.69 and as low as $65.97 over the past 52 weeks. It is currently 0.59% below its 52-week high and 50.22% above its 52-week low. According to the discounted cash flow (DCF) calculator, the stock is overpriced by 105% at $99.1.

Among the gurus invested in the company, Barrow, Hanley, Mewhinney & Strauss is the largest shareholder with 4.76% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.41% and Diamond Hill Capital (Trades, Portfolio) with 0.33%.

Dick's Sporting Goods Inc. (DKS)

The sporting goods retailer has a market cap of $3.58 billion. GuruFocus gives the company a business predictability rating of 3.5 out of 5 stars.

The stock has risen 16% over the past six months and is trading with a P/E ratio of 12.30. The price has been as high as $54.74 and as low as $23.88 the past 52 weeks. It is currently 39.11% below its 52-week high and 39.57% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 15% at $33.33.

Among the gurus invested in the company, the largest shareholder is Jim Simons (Trades, Portfolio) with 1.47% of outstanding shares, followed by Manning & Napier Advisors, Inc with 1.13%, Ron Baron (Trades, Portfolio) with 0.98% and Steven Cohen (Trades, Portfolio) with 0.16%.

Dollar Tree Inc. (DLTR)

The operator of discount retail stores has a market cap of $27.23 billion. GuruFocus gives the company a business predictability rating of 5 out of 5 stars.

The stock has risen 7.0% over the past six months and is trading with a P/E ratio of 27.41. The price has been as high as $115.05 and as low as $65.63 the past 52 weeks. It is currently 0.18% below its 52-week high and 74.98% above its 52-week low. According to the DCF calculator, the stock is overpriced by 17% at $114.84.

With 2.06% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by Louis Moore Bacon (Trades, Portfolio) with 0.22% and Cohen with 0.14%.

Dorman Products Inc. (DORM)

It is a supplier of replacement parts and fasteners for passenger cars, light trucks, and heavy duty trucks in the automotive aftermarket. The company has a market cap of $2.42 billion. GuruFocus gives the company a business predictability rating of 5 out of 5 stars.

The stock has risen 17.3% over the past six months and is trading with a P/E ratio of 21.67. The price has been as high as $88.50 and as low as $60.93 the past 52 weeks. It is currently 18.94% below its 52-week high and 17.74% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 24% at $71.74.

Among the gurus invested in Dorman, the largest shareholder is Chuck Royce (Trades, Portfolio) with 1.9% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.77% and Joel Greenblatt (Trades, Portfolio) with 0.14%.

New Oriental Education & Technology (EDU)

The company provides private educational services in China. It has a market cap of $16.54 billion. GuruFocus gives the company a business predictability rating of 4 out of 5 stars.

The stock has gained 11.6% over the past six months and is trading with a P/E ratio of 56.71. The price has been as high as $105.50 and as low as $46.35 the past 52 weeks. It is currently 0.55% below its 52-week high and 126.36% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 99% at $104.92.

With 1.43% of outstanding shares, Chase Coleman (Trades, Portfolio) is the company's largest guru shareholder, followed by Chris Davis (Trades, Portfolio) with 0.67% and Sarah Ketterer (Trades, Portfolio) with 0.62%.

Express Scripts Holding Co. (ESRX)

The alternative asset management company has a market cap of $45.8 billion. GuruFocus gives the company a business predictability rating of 4 out of 5 stars.

The stock has risen 8.3% over the past six months and is trading with a P/E ratio of 13.41. The price has been as high as $81.75 and as low as $55.80 the past 52 weeks. It is currently 1.08% below its 52-week high and 44.93% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 38% at $80.87.

Among the gurus invested in the company, the largest shareholder is Dodge & Cox with 6.17% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 3.3% and Davis with 0.68%.

Edwards Lifesciences Corp. (EW)

The company is specialized in the treatment of structural heart disease and has a market cap of $25.57 billion. GuruFocus gives the company a business predictability rating of 4.5 out of 5 stars.

The stock has risen 7.2% over the past six months and is trading with a P/E ratio of 35.23. The price has been as high as $121.45 and as low as $86.55 the past 52 weeks. It is currently 0.51% below its 52-week high and 39.61% above its 52-week low. According to the DCF calculator, the stock is overpriced by 24% at $120.83.

With 3.42% of outstanding shares, Frank Sands (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 1.04% and David Rolfe (Trades, Portfolio) with 0.63%.

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