According to aggregated portfolio data coupled with some All-in-One Screener filters, three high-quality, low price-earnings stocks with broad guru ownership are Baidu Inc. (BIDU, Financial), Biogen Inc. (BIIB, Financial) and Comcast Corp. (CMCSA, Financial).
Screening from a portfolio of stocks
The three stocks above are selected from the top 40 stocks from the Aggregated Portfolio of Gurus. You can create a portfolio using the “Add to Portfolio” feature located at the bottom of the “Aggregated Portfolio,” as Figure 1 illustrates. Figure 2 shows the pop-up window that creates the portfolio “Broadest Owned Guru Stocks.”
Figure 1
Figure 2
GuruFocus launched a new version of the All-in-one Screener during the past week. Figure 3 illustrates a sample screenshot of “Screener 2.0” with the fundamental filters selected.
Figure 3
You can set the universe of the Screener using the “Load from Portfolio” filter. Figure 4 illustrates this by selecting the “Broadest Owned Stocks” portfolio.
Figure 4
According to Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s four-criterion investing approach, one key factor in determining company quality is consistency of revenue and earnings growth. The GuruFocus business predictability rank grades a company’s revenue and earnings growth consistency on a scale of 1 to 5. High-quality companies typically have a predictability rank of at least three or four stars.
Among the broadest-owned stocks, the three companies with a predictability rank of at least three and a price-earnings below 16 as of Wednesday are Baidu, Biogen and Comcast.
Baidu
Twenty-seven gurus own shares of Baidu, a Chinese online media company, as of fourth-quarter 2018. The company is trading slightly below its Peter Lynch earnings line.
GuruFocus ranks the company’s profitability 8 out of 10 on several positive investing signs, which include net profit margins that outperform 88% of global competitors and a three-year revenue growth rate that outperforms 75% of global competitors.
Gurus riding Baidu’s strong growth potential include Sarah Ketterer (Trades, Portfolio), Dodge & Cox and Steven Romick (Trades, Portfolio).
Biogen
Twenty-four gurus own shares of Biogen as of the latest quarter.
The Cambridge, Massachusetts-based company develops and manufactures therapies to patients for the treatment of neurological, rare and autoimmune diseases. GuruFocus ranks the company’s profitability 9 out of 10 on several positive investing signs, which include expanding profit margins, a strong Piotroski F-score of 7 and returns on equity that are outperforming 94% of global competitors. Additionally, the company’s business predictability ranks five stars on strong and consistent revenue and earnings growth over the past 10 years.
Gurus with large holdings in Biogen include PRIMECAP Management (Trades, Portfolio) and the Vanguard Health Care Fund (Trades, Portfolio).
Comcast
Thirty-six gurus own shares of Comcast as of the latest quarter.
Philadelphia-based Comcast provides a wide range of services through networks like NBC, CNBC and MSNBC. GuruFocus ranks the company’s profitability 8 out of 10 on several positive investing signs, which include profit margins that outperform over 85% of global competitors and a three-year revenue growth rate that outperforms 78% of global competitors.
Disclosure: As of the writing of this article, the author is long Biogen.
Read more here:
