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Tiziano Frateschi
Tiziano Frateschi
Articles (2360)  | Author's Website |

6 Stocks Outperforming the S&P 500 Index

Royal Caribbean and Motorola make the list

December 23, 2019 | About:

According to the GuruFocus All-in-One Screener, a Premium feature, the following Guru-owned stocks have outperformed the S&P 500 Index over the past 12 months.

All quoted statistics are for Dec. 23, 2019.

Cintas

Cintas Corp. (CTAS) has a market cap of $28.16 billion. It has outperformed the S&P 500 by 40.02% over the past year.

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Shares are trading with a price-earnings ratio of 32.02. According to the discounted cash flow calculator, the stock is overpriced by 20% at $271.5. As of Dec. 23, the price was 74.06% above the 52-week low and 2.29% below the 52-week high.

The business services company has a profitability and growth rating of 8 out of 10. The return on equity of 29.97% and return on assets of 12.25% are outperforming 90% of companies in the business services industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.08 is below the industry median of 0.71.

Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder with 0.40% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.07% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.06%.

KLA

With a market cap of $28 billion, KLA Corp. (KLAC) has outperformed the S&P 500 by 77.91% over the past 12 months.

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Shares are trading with a price-earnings ratio of 24.79. According to the DCF calculator, the stock is overpriced by 131% at $117.47. As of Monday, the price was 120.05% above the 52-week low and 1.38% below the 52-week high.

The company, which provides yield-management, process-monitoring and control systems, has a profitability and growth rating of 9 out of 10. The return on equity of 49.68% and return on assets of 14.56% are outperforming 90% of companies in the semiconductors industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.5 is below the industry median of 1.36.

The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 6.54% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.27%, Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.02% and Scott Black (Trades, Portfolio) with 0.01%.

Cummins

Cummins Inc. (CMI) has a market cap of $27.75 billion. It has outperformed the S&P 500 by 10.67% over the past year.

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Shares are trading with a price-earnings ratio of 11.28. According to the DCF calculator, the stock is undervalued with a 26% of margin of safety at $181. As of Monday, the price was 45.59% above the 52-week low and 3.01% below the 52-week high.

The company has a profitability and growth rating of 9 out of 10. The return on equity of 33.02% and return on assets of 12.89% are outperforming 92% of companies in the industrial products industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.6 is below the industry median of 0.87.

The company’s largest guru shareholder is HOTCHKIS & WILEY with 1.65% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.43% and Bill Nygren (Trades, Portfolio)’s Oakmark Fund with 1.12%.

PACCAR

With a market cap of $27.73 billion, PACCAR Inc. (PCAR) has outperformed the S&P 500 by 18.85% over the past 12 months.

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Shares are trading with a price-earnings ratio of 11.47. According to the DCF calculator, the stock is undervalued with a 48% of margin of safety at $80. As of Monday, the price was 50.05% above the 52-week low and 3.88% below the 52-week high.

The company, which manufactures duty trucks, has a profitability and growth rating of 7 out of 10. The return on equity of 26.2% and return on assets of 9.24% are outperforming 86% of companies in the farm and heavy construction machinery industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.44 is above the industry median of 0.41.

HOTCHKIS & WILEY is the company's largest guru shareholder with 0.42% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.32% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.24%.

Motorola Solutions

Motorola Solutions Inc. (MSI) has a market cap of $27.59 billion. It has outperformed the S&P 500 by 9.14% over the past 12 months.

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Shares are trading with a price-earnings ratio of 27. According to the DCF calculator, the stock is overpriced by 151% at $161.01 per share. As of Monday, the price was 48.74% above the 52-week low and 11.67% below the 52-week high.

The data and telecommunications company has a profitability and growth rating of 8 out of 10. The return on equity of 10.75% and return on assets of 119.25% are outperforming 87% of companies in the hardware industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.18 is below the industry median of 1.2.

The company’s largest guru shareholder is Philippe Laffont (Trades, Portfolio) with 0.93% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.18%, Jerome Dodson (Trades, Portfolio)’s Parnassus Fund with 0.14% and David Rolfe (Trades, Portfolio) with 0.12%.

Royal Caribbean Cruises

With a market cap of $27.48 billion, Royal Caribbean Cruises Ltd. (RCL) has outperformed the S&P 500 by 5.57% over the past 12 months.

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Shares are trading with a price-earnings ratio of 14.34. According to the DCF calculator, the stock is overpriced by 49% at $131.08 per share. As of Monday, the price was 46.49% above the 52-week low and 1.06% below the 52-week high.

The cruise company has a profitability and growth rating of 7 out of 10. The return on equity of 16.79% and return on assets of 6.71% are outperforming 77% of competitors in the travel and leisure industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.02 is below the industry median of 0.44.

PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 4.52% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.96%, Simons with 0.60%, John Rogers (Trades, Portfolio) with 0.32% and Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.21%.

Disclosure: I do not own any of the stocks mentioned.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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