5 Predictable Stocks With a Margin of Safety

Biogen makes the list

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Sep 22, 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. 22.

Biogen

Biogen Inc. (BIIB) has a business predictability rank of five out of five stars and, according to the discounted cash flow calculator, a 72.39% margin of safety at an average price of $268.30 per share.

The company, which operates in the drug manufacturers industry, has a market cap of $42.48 billion and an enterprise value of $45.97 billion. Over the past five years, its revenue and earnings per share have increased 8% and 16.50%, respectively.

Over the past 12 months, the stock has lost 28.49% and is currently trading with a price-earnings ratio of 7.86. The share price has been as high as $374.99 and as low as $219.70 in the last year. As of Sept. 22, the stock was trading 28.45% below its 52-week high and 22.12% above its 52-week low.

With 9.87% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 2.47% and the Vanguard Health Care Fund (Trades, Portfolio) with 2.35%.

O'Reilly

O'Reilly Automotive Inc. (ORLY) has a five-star business predictability rank and, according to the DCF calculator, a 21.83% margin of safety at the average price of $453.96 per share.

The provider of aftermarket automotive parts, tools and accessories has a market cap of $33.62 billion and an enterprise value of $38.85 billion. Over the past five years, its revenue and earnings per share have grown 6.80% and 19.70%, respectively.

The stock has gained 13.81% over the last 12 months and shares are trading with a price-earnings ratio of 22.25. The share price has been as high as $487.95 and as low as $251.51 in the last 52 weeks. As of Sept. 22, the stock was trading 6.97% below its 52-week high and 80.49% above its 52-week low.

With 2.49% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 1.28% and Diamond Hill Capital (Trades, Portfolio) with 0.44%.

Centene

Centene Corp. (CNC) has a three-star business predictability rank and, according to the DCF calculator, a 30.99% margin of safety at an average price of $55.99 per share.

The company has a $32.44 billion market cap and an enterprise value of $35.02 billion. Over the past five years, its revenue has increased 35.40% and its earnings per share have risen 21.60%.

The share price has climbed 20.69% over the past 12 months. The stock is trading with a price-earnings ratio of 19.65. The share price has been as high as $74.70 and as low as $241.62 in the last 52 weeks. As of Sept. 22, the stock was trading 25.05% below its 52-week high and 34.51% above its 52-week low.

With 2.78% of outstanding shares, Andreas Halvorsen (Trades, Portfolio) is the company's most notable guru shareholder, followed by Vanguard Health Care Fund (Trades, Portfolio) with 1.65% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.33%.

T. Rowe Price

T. Rowe Price Group Inc. (TROW) has a four-star business predictability rank and, according to the DCF calculator, a 28.63% margin of safety at an average price of $124.74 per share.

The company, which provides a broad range of no-load U.S. and international stock, has a market cap of $28.31 billion and an enterprise value of $26.42 billion. Over the past five years, its revenue has grown 7.70% and its earnings per share have decreased 14.80%.

Shares have tanked 12.12% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 14.80. The share price has been as high as $142.51 and as low as $82.51 in the last 52 weeks. As of Sept. 22, the stock was trading 12.47% below its 52-week high and 51.18% above its 52-week low.

With 0.35% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Ron Baron (Trades, Portfolio) with 0.15% and Tom Gayner (Trades, Portfolio) with 0.14%.

Aflac

Aflac Inc. (AFL) has a three-star business predictability rank and, according to the DCF calculator, a 35.84% margin of safety at an average price of $36.41 per share.

The company, which offers supplemental health insurance and life insurance, has a market cap of $25.96 billion and an enterprise value of $28.20 billion. Over the past five years its earnings per share have increased 8.60%.

Shares have declined 27.80% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 9.10. The share price has been as high as $55.07 and as low as $23.07 in the last 52 weeks. As of Sept. 22, the stock was trading 33.88% below its 52-week high and 57.82% above its 52-week low.

With 0.20% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons' firm with 0.10%.

Disclosure: I do not own any stocks mentioned.

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