5 Predictable Stocks With a Margin of Safety

NetEase on the list

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Jun 04, 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 as of June 4.

Micro Focus

Micro Focus International PLC (MFGP) has a business predictability rank of 4.5 out of 5 stars and, according to the discounted cash flow calculator, a 1,200% margin of safety at an average price of $6.16 per share.

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The provider of software solutions has a market cap of $1.9 billion and an enterprise value of $6.2 billion. Over the past five years, its revenue has grown 54.5%.

Over the past 12 months, the stock has decreased 71.31% and is currently trading with a price-earnings ratio of 1.64. The share price has been as high as $30.96 and as low as $3.42 in the last year. As of June 4, the stock was trading 80.10% below its 52-week high and 80.12% above its 52-week low.

With 10.61% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 0.45% and Sarah Ketterer (Trades, Portfolio)’s Causeway Capital with 0.22%.

IRSA

IRSA Propiedades Comerciales SA (IRCP) has a 4-star business predictability rank and, according to the DCF calculator, a 105.90% margin of safety at the average price of $6.11 per share.

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The manager of shopping centres has a market cap of $192 million and an enterprise value of $585 million. Over the past five years, its revenue has increased 45.20%.

The stock has lost 63.90% over the last 12 months and shares are trading with a forward price-earnings ratio of 22.94. The share price has been as high as $22.24 and as low as $5.06 in the last 52 weeks. As of June 4, the stock was trading 72.53% below its 52-week high and 20.75% above its 52-week low.

NetEase

NetEase Inc. (NTES) has a 5-star business predictability rank and, according to the DCF calculator, a 41.31% margin of safety at an average price of $414.58 per share.

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The provider of internet services has a $54 billion market cap and an enterprise value of $47 billion. Over the past five years, its revenue has increased 32.70% and its earnings per share have grown 15.60%.

The share price has gained 73.4% over the past 12 months. The stock is trading with a price-earnings ratio of 17.03 and a price-book ratio of 7.34. The share price has been as high as $425 and as low as $209.01 in the last 52 weeks. As of June 4, the stock was trading 2.45% below its 52-week high and 98.35% above its 52-week low.

With 0.73% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's most notable shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.35% and Pioneer Investments (Trades, Portfolio) with 0.34%.

Gray Television

Gray Television Inc. (GTN) has a 3-star business predictability rank and, according to the DCF calculator, a 27.14% margin of safety at an average price of $4.64 per share.

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The TV broadcaster has a market cap of $1.5 billion and an enterprise value of $5.6 billion. Over the past five years, its revenue has increased 29.4% and its earnings per share have increased 25.3%.

Shares have declined 10.08% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 7.26. The share price has been as high as $24.61 and as low as $8.53 in the last 52 weeks. As of June 4, the stock was trading 37.38% below its 52-week high and 80.66% above its 52-week low.

With 0.55% of outstanding shares, Leon Cooperman (Trades, Portfolio)’s Omega Advisors is the company's largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 0.46% and John Hussman (Trades, Portfolio) with 0.08%.

Grupo Aeroportuario del Pacifico

Grupo Aeroportuario del Pacifico SAB de CV (PAC) has a 3-star business predictability rating and, according to the DCF calculator, a 36.33% margin of safety at an average price of $79.12 per share.

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The operator of airports has a $4.4 billion market cap and an enterprise value of $3.9 billion. Over the past five years, its revenue has grown 22.6% and its earnings per share have climbed 20.6%.

Shares have declined 11.8% over the past year. The stock is trading with a price-earnings ratio of 16.38. The price has been as high as $135.31 and as low as $44.28 in the last 52 weeks. As of June 4, the stock was trading 41.53% below its 52-week high and 78.68% above its 52-week low.

With 2.01% of outstanding shares, Renaissance Technologies is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.04%.

Disclosure: I do not own any stocks mentioned.

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