7 Quality Stocks in Gurus' Portfolios

CarMax, Kohl's top the list

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Jan 24, 2018
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According to the GuruFocus All-in-One Screener, the following stocks have high business predictability ratings and positive total returns over the past six months. At least five gurus are shareholders of the companies.

CarMax Inc. (KMX, Financial)

The used car dealership has a market cap of $12.93 billion. GuruFocus gives the company a business predictability rating of 3.5 out of 5 stars.

The stock has gained 11.5% over the past six months and is trading with a price-earnings ratio of 19.17. The price has been as high as $77.64 and as low as $54.29 over the past 52 weeks. It is currently 7.92% below its 52-week high and 31.68% above its 52-week low. According to the discounted cash flow (DCF) calculator, the stock is undervalued with a 31% margin of safety at $71.49.

Of the gurus invested in CarMax, PRIMECAP Management (Trades, Portfolio) has the largest position with 8.49% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 5.32% and Chuck Akre (Trades, Portfolio) with 2.85%.

Kohl's Corp. (KSS, Financial)

The department store has a market cap of $11.45 billion. GuruFocus gives the company a business predictability rating of 3.5 out of 5 stars.

The stock has risen 25.7% over the past six months and is trading with a price-earnings ratio of 18.13. The price has been as high as $69.14 and as low as $35.16 in the past 52 weeks. It is currently 93.89% above its 52-week low. According to the DCF calculator, the stock is overpriced by 69% at $68.17.

Among the gurus invested in Kohl's, the largest shareholder is the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.8% of outstanding shares, followed by Hotchkis & Wiley with 0.72%, Richard Pzena (Trades, Portfolio) with 0.2% and Louis Moore Bacon (Trades, Portfolio) with 0.19%.

Laboratory Corp of America Holdings (LH, Financial)

The health care diagnostics company has a market cap of $17.94 billion. GuruFocus gives the company a business predictability rating of 5 out of 5 stars.

The stock has gained 10.5% over the past six months and is trading with a price-earnings ratio of 24.58. The price has been as high as $176.49 and as low as $128 over the past 52 weeks. It is currently 0.01% below its 52-week high and 37.70% above its 52-week low. According to the DCF calculator, the stock is overpriced by 123% at $176.26.

With 2.86% of outstanding shares, Larry Robbins (Trades, Portfolio) is the company's largest guru shareholder, followed by John Rogers (Trades, Portfolio) with 1.23% and Wallace Weitz (Trades, Portfolio) with 0.75%.

LKQ Corp. (LKQ, Financial)

The aftermarket auto parts provider has a market cap of $13.24 billion. GuruFocus gives the company a business predictability rating of 5 out of 5 stars.

The stock has gained 5.4% over the past six months and is trading with a price-earnings ratio of 26.78. The price has been as high as $43.75 and as low as $27.85 over the past 52 weeks. It is currently 2.06% below its 52-week high and 53.86% above its 52-week low. According to the DCF calculator, the stock is undervalued with an 8% margin of safety at $42.85.

Of the gurus invested in LKQ, the largest shareholder is Akre with 2.02% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.7% and Joel Greenblatt (Trades, Portfolio) with 0.36%.

McKesson Corp. (MCK, Financial)

The pharmaceutical distributor has a market cap of $36.06 billion. GuruFocus gives the company a business predictability rating of 4 out of 5 stars.

The stock has risen 10.9% over the past six months and is trading with a P/E ratio of 8.45. The price has been as high as $173.88 and as low as $133.82 over the past 52 weeks. It is currently 0.53% below its 52-week high and 29.25% above its 52-week low. According to the DCF calculator, the stock is undervalued with a 66% margin of safety at $172.96.

With 3.84% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Robbins with 1.31% and Pzena with 1.18%.

Medtronic PLC (MDT, Financial)

The medical technology company has a market cap of $116.47 billion. GuruFocus gives the company a business predictability rating of 4.5 out of 5 stars.

The stock has risen 6.6% over the past six months and is trading with a price-earnings ratio of 23.58. The price has been as high as $89.72 and as low as $73.59 in the past 52 weeks. It is currently 4.09% below its 52-week high and 16.93% above its 52-week low. According to the DCF calculator, the stock is overpriced by 120% at $86.05.

Among the gurus invested in Medtronic, the largest shareholder is the Vanguard Health Care Fund with 1.22% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.22% and Dodge & Cox with 0.9%.

McGrath RentCorp. (MGRC, Financial)

The rental company has a market cap of $1.21 billion. GuruFocus gives the company a business predictability rating of 4 out of 5 stars.

The stock has gained 8.1% over the past six months and is trading with a price-earnings ratio of 26.43. The price has been as high as $50.69 and as low as $32.09 in the past 52 weeks. It is currently 0.36% below its 52-week high and 57.40% above its 52-week low. According to the DCF calculator, the stock is overpriced by 147% at $50.51.

With 2.14% of outstanding shares, Jim Simons (Trades, Portfolio) is the company's largest guru shareholder, followed by Royce with 1.23% and Barrow, Hanley, Mewhinney & Strauss with 0.29%.

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