5 Predictable Stocks With a Margin of Safety

Ebix and Big Lots on the list

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Jan 27, 2020
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According to the GuruFocus All-in-One Screener, a Premium feature, the following companies have high business predictability ratings and a wide margin of safety.

ePlus

ePlus Inc. (PLUS) has a business predictability rank of 3.5 out of five stars and, according to the discounted cash flow calculator, a 38% margin of safety at an average price of $86 per share.

The information technology solutions provider has a market cap of $1.17 billion and an enterprise value of $1.20 billion. Over the past five years, its revenue has grown 9.20% and its earnings per share have grown 14.30%.

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Over the past 12 months, the stock has risen 12.20% and is currently trading with a price-earnings ratio of 17.38. The share price has been as high as $99.63 and as low as $67.0 in the last year. As of Jan. 27, the stock was trading 13.99% below its 52-week high and 27.07% above its 52-week low.

With 0.35% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by HOTCHKIS & WILEY with 0.27% and Chuck Royce (Trades, Portfolio) with 0.22%.

Big Lots

Big Lots Inc. (BIG) has a 5-star business predictability rank and, according to the DCF calculator, a 62.42% margin of safety at the average price of $27 per share.

The company, which operates discount retail stores, has a market cap of $1.05 billion and an enterprise value of $2.76 billion. Over the past five years, its revenue has increased 8.20% and its earnings per share have grown 12.60%.

The stock has fallen 15.31% over the last 12 months and shares are trading with a price-earnings ratio of 4.3. The share price has been as high as $39.53 and as low as $18.54 in the last 52 weeks. As of Jan. 27, the stock was trading 31.52% below its 52-week high and 46.01% above its 52-week low.

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With 0.87% of outstanding shares, Bestinfond (Trades, Portfolio) is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 0.29%, Simons’ firm with 0.25% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.01%.

Ebix

Ebix Inc. (EBIX) has a 5-star business predictability rank and, according to the DCF calculator, a 26% margin of safety at an average price of $34 per share.

The company, which orivudes enterprise cloud e-commerce solutions, has a $1.10 billion market cap and an enterprise value of $1.79 billion. Over the past five years, its revenue has increased 24.90% and its earnings per share have grown 16.80%.

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The share price has fallen 30.83% over the past 12 months. The stock is trading with a price-earnings ratio of 12.56 and a price-book ratio of 1.95. The price has been as high as $63.89 and as low as $31.06 in the last 52 weeks. As of Jan. 27, the stock was trading 44.47% below its 52-week high and 14.23% above its 52-week low.

With 0.56% of outstanding shares, Royce is the company's most notable shareholder, followed by HOTCHKIS & WILEY with 0.49%.

CAI International

CAI International Inc. (CAI) has a business predictability rank of three out of five stars and, according to the DCF calculator, a 17.22% margin of safety at an average price of $28.09 per share.

The company, which operates in the business services industry, has a market cap of $489.49 million and an enterprise value of $2.68 billion. Over the past five years, its revenue has climbed 18.60% and its earnings per share have increased 2.20%.

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Shares have risen 18.39% over the past 12 months. The stock is currently trading with a price-earnings ratio of 15.54 and a price-book ratio of 0.85. The share price has been as high as $29.57 and as low as $17.87 in the last 52 weeks. As of Jan. 27, the stock was trading 4.43% below its 52-week high and 58.14% above its 52-week low.

With 0.28% of outstanding shares, Donald Smith (Trades, Portfolio) is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 0.23% and Royce with 0.18%.

iRobot

iRobot Corp. (IRBT) has a business predictability rank of 3.5 out of five stars and, according to the discounted cash flow calculator, a 39.81% margin of safety at an average price of $54.78 per share.

The company, which designs small, artificially intelligent consumer robots, has a $1.52 billion market cap and an enterprise value of $1.50 billion. Over the past five years, its revenue has grown 18.10% and its earnings per share have climbed 22%.

Shares have declined 36.90% over the past year. The stock is trading with a price-earnings ratio of 17.14 and a price-book ratio of 2.45. The price has been as high as $132.88 and as low as $42.41 in the last 52 weeks. As of Jan. 27, the stock was trading 59.69% below its 52-week high and 26.29% above its 52-week low.

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With 14.11% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Lee Ainslie (Trades, Portfolio)’s Maverick Capital with 0.26% and John Hussman (Trades, Portfolio) with 0.12%.

Disclosure: I do not own any stocks mentioned.

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