5 Undervalued Stocks With High Predictability

Synnex Corp. on the list

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Sep 02, 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 wide margins of safety as of Sept. 2.

Synnex

Synnex Corp. (SNX) has a business predictability rank of five out of five stars and, according to the discounted cash flow calculator, a 21.07% margin of safety at an average price of $128 per share.

The provider of wholesale IT integration and distribution services has a market cap of $6.5 billion and an enterprise value of $8.4 billion. Over the past five years, its revenue and earnings per share have increased 12.30% and 15.20%, respectively.

Over the past 12 months, the stock has gained 53.5% and is currently trading with a price-earnings ratio of 13.79. The share price has been as high as $153.07 and as low as $52.07 in the last year. As of Sept. 2, the stock was trading 16.46% below its 52-week high and 145.62% above its 52-week low.

With 2.31% of outstanding shares, Sarah Ketterer (Trades, Portfolio)'s Causeway Capital is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.12%.

Acuity Brands

Acuity Brands Inc. (AYI) has a five-star business predictability rank and, according to the DCF calculator, a 39.64% margin of safety at the average price of $109 per share.

The provider of lighting products for various applications has a market cap of $4.3 billion and an enterprise value of $4.2 billion. Over the past five years, its revenue and earnings per share have grown 9.3% and 16.2%, respectively.

The stock has lost 12.7% over the last 12 months and shares are trading with a price-earnings ratio of 15.98. The share price has been as high as $143.55 and as low as $67.46 in the last 52 weeks. As of Sept. 2, the stock was trading 24.10% below its 52-week high and 61.52% above its 52-week low.

With 6.73% of outstanding shares, Al Gore (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 2.33% and Paul Tudor Jones (Trades, Portfolio) with 0.07%.

NVR

NVR Inc. (NVR) has a five-star business predictability rank and, according to the DCF calculator, a 29.29% margin of safety at an average price of $4186 per share.

The homebuilder has a $115.5 billion market cap and an enterprise value of $14.7 billion. Over the past five years, its revenue has increased 10.9% and its earnings per share have risen 28.4%.

The share price has gained 16.3% over the past 12 months. The stock is trading with a price-earnings ratio of 20.13. The share price has been as high as $4318 and as low as $2043 in the last 52 weeks. As of Sept. 2, the stock was trading 3.04% below its 52-week high and 105% above its 52-week low.

With 2.68% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's most notable guru shareholder, followed by Simons' firm with 0.63% and the Smead Value Fund (Trades, Portfolio) with 0.54%.

Nordstrom

Nordstrom Inc. (JWN) has a 4.5-star business predictability rank and, according to the DCF calculator, a 148% margin of safety at an average price of $15.18 per share.

The fashion retailer has a market cap of $2.3 billion and an enterprise value of $7.2 billion. Over the past five years, its revenue has grown 3% and its earnings per share have decreased 1.1%.

Shares have tanked 45% compared to 12 months ago. The stock is currently trading with a price-book ratio of 13.71. The share price has been as high as $43.37 and as low as $12.27 in the last 52 weeks. As of Sept. 2, the stock was trading 65% below its 52-week high and 23.72% above its 52-week low.

With 0.33% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.11% and Mark Hillman (Trades, Portfolio) with 0.10%.

The Middleby

The Middleby Corp. (MIDD) has a 4.5-star business predictability rank and, according to the DCF calculator, a 31.87% margin of safety at an average price of $97.93 per share.

The manufacturer of foodservice equipment has a market cap of $5.4 billion and an enterprise value of $7.2 billion. Over the past five years, its revenue has grown 12.7% and its earnings per share have increased 14.5%.

Shares have declined 10.7% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 19.02. The share price has been as high as $128.48 and as low as $41.73 in the last 52 weeks. As of Sept. 2, the stock was trading 23.78% below its 52-week high and 134% above its 52-week low.

With 0.25% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.21% and Robert Olstein (Trades, Portfolio) with 0.17%.

Disclosure: I do not own any stocks mentioned.

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