6 Predictable Stocks at a Discounted Price

Encore Capital tops the list

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Aug 16, 2018
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According to the GuruFocus All-in-One Screener, the following stocks have high business predictability ratings and a wide margin of safety.

Encore Capital Group Inc. (ECPG, Financial)

The company has a four-star business predictability rating and, according to the discounted cash flow calculator, has a 51% margin of safety at $40.2 per share.

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The specialty finance company has a market cap of $1.2 billion. Over the last five years, its revenue has grown by 14.3%, while its earnings per share have declined 0.10%.

The stock price has increased 3% over the last 12 months and is currently trading with a price-earnings ratio of 11.98 and a price-book ratio of 1.67. The price is currently 22.69% below its 52-week high and 14.37% above its 52-week low.

Paul Tudor Jones (Trades, Portfolio) is the company's largest guru shareholder with 0.02% of outstanding shares.

Micro Focus International PLC (MFGP, Financial)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, has a 36% margin of safety at $16 per share.

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The software company has a market cap of $6.8 billion. Over the last five years, its revenue has grown 22.4%, while its earnings per share have declined 1.8%.

The stock price has fallen 43% over the last 12 months and is currently trading with a price-earnings ratio of 10.12 and a price-book ratio of 0.93. The price is currently 55.65% below its 52-week high and 26.76% above its 52-week low.

With 10.79% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 3.31% and Paul Singer (Trades, Portfolio) with 1.43%

United Natural Foods Inc. (UNFI, Financial)

The company has a five-star business predictability rating and, according to the DCF calculator, has a 30% margin of safety at $34.72 per share.

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The company, which sells natural, organic and specialty foods, has a market cap of $1.75 billion. Over the last five years, its revenue and earnings per share have grown 11.5% and 6%.

The stock price has declined 3% over the last 12 months and is currently trading with a price-earnings ratio of 10.31 and a price-book ratio of 0.97. The price is currently 34.11% below its 52-week high and 9.05% above its 52-week low.

Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 1.4% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.92%.

Intercontinental Exchange Inc. (ICE, Financial)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, has a 22% margin of safety at $73.47 per share.

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The company, which operates exchanges for financial and commodity markets, has a market cap of $42 billion. Over the last five years, its revenue has grown 23.5% and its earnings per share have climbed 28.8%.

The stock price has increased 13% over the last 12 months and is currently trading with a price-earnings ratio of 17.27 and a price-book ratio of 2.51. The price is currently 4.86% below its 52-week high and 14.92% above its 52-week low.

With 1.16% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 0.06%.

The Middleby Corp. (MIDD, Financial)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, has a 21% margin of safety at $115 per share.

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The company, which manufactures foodservice and food preparation equipment, has a market cap of $6.43 billion. Over the last five years, its revenue has increased 16.4% and its earnings per share have grown 19.2%.

The stock price has decreased 2% over the last 12 months and is currently trading with a price-earnings ratio of 21.55 and a price-book ratio of 4.3. The price is currently 16.98% below its 52-week high and 17.59% above its 52-week low.

With 5.44% of outstanding shares, Andreas Halvorsen (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Columbia Wanger (Trades, Portfolio) with 0.59% and Ron Baron (Trades, Portfolio) with 0.13%.

Winmark Corp. (WINA, Financial)

The company has a four-star business predictability rating and, according to the DCF calculator, has a 21% margin of safety at $148.55 per share.

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With a market cap of $574 million, the company is a franchisor of five retail businesses that specialize in trading used goods. Over the last five years, its revenue and earnings per share have grown by 11.4% and 17%.

The stock price has increased 14% over the last 12 months and is currently trading with a price-earnings ratio of 22.56. The price is currently 3.29% below its 52-week high and 22.30% above its 52-week low.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 4.79% of outstanding shares.

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