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Tiziano Frateschi
Tiziano Frateschi
Articles (2276)  | Author's Website |

5 Guru Stocks With Predictable Businesses

JetBlue Airways makes the list

January 15, 2020 | About:

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

L Brands

L Brands Inc. (NYSE:LB) has a business predictability rank of 4.5 out of five stars and, according to the discounted cash flow calculator, a 9.46% margin of safety at an average price of $20.19 per share.

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The retailer has a market cap of $5.58 billion and an enterprise value of $14.37 billion. Over the past five years, its revenue has grown 5.20%, but its earnings per share have fallen 4.20%.

Over the past 12 months, the stock has fallen 24.08% and is currently trading with a price-earnings ratio of 15.41. The share price has been as high as $29.02 and as low as $15.80 in the last year. As of Jan. 15, the stock was trading 30.43% below its 52-week high and 27.78% above its 52-week low.

With 6.72% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.28% and Ray Dalio (Trades, Portfolio) with 0.99%.

Eaton Vance

Eaton Vance Corp. (NYSE:EV) has a 3.5-star business predictability rank and, according to the DCF calculator, a 9.67% margin of safety at the average price of $47.55 per share.

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The company, which supplies asset management and investment advisory services, has a market cap of $5.4 billion and an enterprise value of $7.03 billion. Over the past five years, its revenue has increased 4.70% and its earnings per share have grown 12.20%.

The stock has risen 26.77% over the last 12 months and shares are trading with a price-earnings ratio of 13.59. The share price has been as high as $48.98 and as low as $35.84 in the last 52 weeks. As of Jan. 15, the stock was trading 2.92% below its 52-week high and 32.67% above its 52-week low.

With 0.04% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Steven Cohen (Trades, Portfolio) with 0.02% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

JetBlue Airways

JetBlue Airways Corp. (NASDAQ:JBLU) has a 3.5-star business predictability rank and, according to the DCF calculator, a 9% margin of safety at an average price of $18.60 per share.

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The American airline operator has a $5.24 billion market cap and an enterprise value of $6.76 billion. Over the past five years, its revenue has increased 8.50% and its earnings per share have grown 11.90%.

The share price has fallen 8.39% over the past 12 months. The stock is trading with a price-earnings ratio of 9.74 and a price-book ratio of 1.13. The price has been as high as $19.93 and as low as $15.60 in the last 52 weeks. As of Jan. 15, the stock was trading 6.67% below its 52-week high and 19.23% above its 52-week low.

With 7.80% of outstanding shares, PRIMECAP Management is the company's most notable shareholder, followed by Donald Smith (Trades, Portfolio) with 3.75% and Simons' firm with 3.25%.

Maximus

Maximus Inc. (NYSE:MMS) has a business predictability rank of 3.5 out of five stars and, according to the DCF calculator, a 17.98% margin of safety at an average price of $75.6 per share.

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The company, which operates in the business services industry, has a market cap of $4.84 billion and an enterprise value of $4.74 billion. Over the past five years, its revenue has climbed 10.30% and its earnings per share have increased 12.30%.

Shares have risen 10.33% over the past 12 months. The stock is currently trading with a price-earnings ratio of 20.32 and a price-book ratio of 3.88. The share price has been as high as $82.02 and as low as $68.00 in the last 52 weeks. As of Jan. 15, the stock was trading 7.83% below its 52-week high and 11.18% above its 52-week low.

With 0.96% of outstanding shares, Ron Baron (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments with 0.32%, Chuck Royce (Trades, Portfolio) with 0.06%, Paul Tudor Jones (Trades, Portfolio) with 0.04% and Greenblatt with 0.03%.

Micro Focus International

Micro Focus International PLC (NYSE:MFGP) has a business predictability rank of three out of five stars.

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The software solutions provider has a $4.74 billion market cap and an enterprise value of $6.77 billion. Over the past five years, its revenue has grown 10.80%, but its earnings per share have declined 4.50%.

Shares have declined 38.65% over the past year. The stock is trading with a price-earnings ratio of 3.15 and a price-book ratio of 0.70. The price has been as high as $27.32 and as low as $12.50 in the last 52 weeks. As of Jan. 15, the stock was trading 46.89% below its 52-week high and 16.08% above its 52-week low.

With 10.69% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by PRIMECAP Management with 2.37% and Sarah Ketterer (Trades, Portfolio) with 0.20%.

Disclosure: I do not own any 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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