5 Cheap Stocks With Predictable Businesses

Ryder System, Comcast top the list

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Oct 30, 2018
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According to the GuruFocus All-in-One Screener, the following companies have high business predictability ratings and a wide margin of safety.

Ryder System Inc. (R, Financial)

The company has a four-star out of five business predictability rating and, according to the discounted cash flow calculator, a 77% margin of safety at $55 per share.

The company, which provides supply chain and fleet management solutions, has a market cap of $3.04 billion. Over the last five years, its revenue has increased 1.90% and its earnings per share have grown 22.80%.

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The stock has fallen 30% over the last 12 months and is currently trading with a price-earnings ratio of 3.91 and a price-book ratio of 1.07. The price has been as high as $90.26 and as low as $54.16 in the last 52 weeks. It is currently 36.61% below its 52-week high and 5.56% above its 52-week low.

With 3.93 of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 2.74%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.18% and Pioneer Investments (Trades, Portfolio) with 0.15%.

Comcast Corp. (CMCSA, Financial)

The company has a 3.5 -star business predictability rating and, according to the DCF calculator, a 75% margin of safety at $35.24 per share.

The media company has a market cap of $163.05 billion. Over the last five years, its revenue has increased 9.50% and its earnings per share have grown 26.20%.

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The stock has fallen 3% over the last 12 months and is currently trading with a price-earnings ratio of 6.99 and a price-book ratio of 2.24. The price has been as high as $44 and as low as $30.43 in the last 52 weeks. As of Monday, it is 19.91% below its 52-week high and 15.81% above its 52-week low.

With 2.9% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 0.78%, First Eagle Investment (Trades, Portfolio) with 0.7%, Mason Hawkins (Trades, Portfolio)' Southeastern Asset Management with 0.41% and Hotchkis & Wiley with 0.28%.

Allegiant Travel Co. (ALGT, Financial)

The company has a five-star business predictability rating and, according to the DCF calculator, a 68% margin of safety at $118 per share.

The travel agency has a $1.92 billion market cap. Over the last five years, its revenue has grown 15.20% and its earnings per share have climbed 30.80 %.

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The stock fell 23% over the last 12 months; it is currently trading with a price-earnings ratio of 9.13 and a price-book ratio of 2.65. The price has been as high as $181.45 and as low as $105.21 in the last 52 weeks. It is currently 40.85% below its 52-week high and 2.02% above its 52-week low.

The company's largest guru shareholder is First Pacific Advisors (Trades, Portfolio) with 3.15% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 2.59%, Simons with 2.36% and Chuck Royce (Trades, Portfolio) with 1.15%.

Micron Technology Inc. (MU, Financial)

The company has a 3.5-star business predictability rating and, according to the DCF calculator, has a 71% margin of safety at $35.4 per share.

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The company, which makes memory and storage solutions, has a market cap of $40.3 billion. Over the last five years, its revenue has grown 18.40%.

The stock fell 15% over the last 12 months; it is currently trading with a price-earnings ratio of 3.07 and a price-book ratio of 1.27. The price has been as high as $181.45 and as low as $105.21 in the last 52 weeks. It is currently 40.85% below its 52-week high and 2.02% above its 52-week low.

With 5.13% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by David Tepper (Trades, Portfolio) with 3.57% and Donald Smith (Trades, Portfolio) with 0.68%.

Thor Industries Inc. (THO, Financial)

The company has a 3.5-star business predictability rating and, according to the DCF calculator, a 71% margin of safety at $67 per share.

The manufacturer of the recreational vehicles has a market cap of $3.53 billion. Over the last five years, its revenue has grown 22.40% and its earnings per share have increased 24.90%.

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The stock has dropped 50% over the last 12 months; it is currently trading with a price-earnings ratio of 8.24 and a price-book ratio of 1.82. The price has been as high as $161.48 and as low as $65.30 in the last 52 weeks. It is currently 58.46% below its 52-week high and 2.73% above its 52-week low.

The company's largest guru shareholder is Royce with 0.99% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.92% and Ken Heebner (Trades, Portfolio) with 0.67%.

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

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