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Tiziano Frateschi
Tiziano Frateschi
Articles (2347)  | Author's Website |

5 Predictable Stocks With a Margin of Safety

Apple tops the list

March 24, 2020 | About:

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.

Apple

Apple Inc. (NASDAQ:AAPL) has a business predictability rank of 4.5 out of five stars and, according to the discounted cash flow calculator, a 33% margin of safety at an average price of $240 per share.

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The manufacturer of electronic devices and personal computers has a market cap and enterprise value of $1.03 trillion. Over the past five years, its revenue has grown 6.5% and its earnings per share have grown 11.9%.

Over the past 12 months, the stock has increased 27% and is currently trading with a price-earnings ratio of 18.68. The share price has been as high as $327.85 and as low as $169.5 in the last year. As of March 24, the stock was trading 26.57% below its 52-week high and 42.04% above its 52-week low.

With 5.60% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.32% and Pioneer Investments (Trades, Portfolio) with 0.20%.

First American Financial

First American Financial Corp. (NYSE:FAF) has a 4.5-star business predictability rank and, according to the DCF calculator, a 78% margin of safety at the average price of $38.35 per share.

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The insurance company has a market cap of $4.39 billion and an enterprise value of $3.91 billion. Over the past five years, its revenue has increased 5.10% and its earnings per share have grown 21.9%.

The stock has declined 24% over the last 12 months and shares are trading with a price-earnings ratio of 6.26. The share price has been as high as $66.78 and as low as $29.36 in the last 52 weeks. As of March 24, the stock was trading 42.63% below its 52-week high and 30.48% above its 52-week low.

With 3.19% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by Fisher with 0.98% and Pioneer Investments with 0.64%.

Dollar General

Dollar General Corp. (NYSE:DG) has a four-star business predictability rank and, according to the DCF calculator, a 12% margin of safety at an average price of $143 per share.

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The discount retailer has a $36 billion market cap and an enterprise value of $47.55 billion. Over the past five years, its revenue has increased 7.9% and its earnings per share have grown 14.4%.

The share price has increased 21% over the past 12 months. The stock is trading with a price-earnings ratio of 21.43 and a price-book ratio of 5.41. The share price has been as high as $167.44 and as low as $108.74 in the last 52 weeks. As of March 24, the stock was trading 14.54% below its 52-week high and 31.59% above its 52-week low.

With 1.64% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's most notable shareholder, followed by Steven Cohen (Trades, Portfolio) with 0.44% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.31%.

Carter’s

Carter’s Inc. (NYSE:CRI) has a business predictability rank of five out of five stars and, according to the DCF calculator, a 41.68% margin of safety at an average price of $69 per share.

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The manufacturer of apparel for babies and kids under several brand names has a market cap of $2.98 billion and an enterprise value of $4.19 billion. Over the past five years, its revenue has climbed 4.3% and its earnings per share have increased 10.4%.

Shares have tanked 28% over the past 12 months. The stock is currently trading with a price-earnings ratio of 11.54 and a price-book ratio of 3.39. The share price has been as high as $112.46 and as low as $62.91 in the last 52 weeks. As of March 24, the stock was trading 38.59% below its 52-week high and 9.78% above its 52-week low.

With 0.97% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments with 0.84% and Bernard Horn (Trades, Portfolio) with 0.12%.

Hyatt Hotels

Hyatt Hotels Corp. (NYSE:H) has a business predictability rank of five stars and, according to the DCF calculator, a 39% margin of safety at an average price of $50 per share.

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The owner and manager of luxury properties has a $5.03 billion market cap and an enterprise value of $6.12 billion. Over the past five years, its revenue has grown 2.3% and its earnings per share have climbed 43.8%.

Shares have declined 30% over the past year. The stock is trading with a price-earnings ratio of 6.85. The price has been as high as $94.98 and as low as $24.02 in the last 52 weeks. As of March 24, the stock was trading 47.27% below its 52-week high and 108.49% above its 52-week low.

With 4.4% of outstanding shares, Ron Baron (Trades, Portfolio) is the company's largest guru shareholder, followed by Lee Ainslie (Trades, Portfolio) with 0.41% and Cohen with 0.29%.

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.

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