5 Guru Stocks With Predictable Business

AutoNation makes the list

Author's Avatar
Oct 20, 2020
Article's Main Image

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 Oct. 20.

Penske Automotive

Penske Automotive Group Inc. (PAG) has a four-star business predictability rank and, according to the discounted cash flow calculator, a 63.98% margin of safety at an average price of $55.99 per share.

The company, which operates in the vehicles and parts industry, has a market cap of $4.50 billion and an enterprise value of $10.03 billion. Over the past five years, its revenue and earnings per share have increased 6% and 12.40%, respectively.

Over the past 12 months, the stock has risen 17% and is currently trading with a price-earnings ratio of 14.47. The share price has been as high as $56.88 and as low as $19.99 in the last year. As of Oct. 20, the stock was trading 1.56% below its 52-week high and 180.09% above its 52-week low.

With 0.63% of outstanding shares, Mario Gabelli (Trades, Portfolio)'s GAMCO Investors is the company's largest guru shareholder, followed by Louis Moore Bacon (Trades, Portfolio) with 0.07%, Jim Simons (Trades, Portfolio)' Renaissance Technologies firm with 0.06% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

Grupo Televisa

Grupo Televisa SAB (TV) has a 3.5-star business predictability rank and, according to the DCF calculator, a 7.40% margin of safety at the average price of $7.03 per share.

The media company has a market cap of $3.96 billion and an enterprise value of $10.23 billion. Over the past five years, its revenue has grown 4.70%, but earnings per share have declined 3.40%.

The stock has lost 35.48% over the last 12 months and shares are trading with a price-book ratio of 1.28. The share price has been as high as $12.60 and as low as $4.65 in the last 52 weeks. As of Oct. 20, the stock was trading 44.23% below its 52-week high and 51.18% above its 52-week low.

With 12.04% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by David Herro (Trades, Portfolio) with 4.80% and Bill Gates (Trades, Portfolio) with 2.99%.

First American Financial

First American Financial Corp. (FAF) has a 4.5-star business predictability rank and, according to the DCF calculator, an 64.90% margin of safety at an average price of $52.17 per share.

The financial services firm has a $5.82 billion market cap and an enterprise value of $5.59 billion. Over the past five years, its revenue has increased 5.10% and its earnings per share have risen 21.90%.

The share price has lost 13.64% over the past 12 months. The stock is trading with a price-earnings ratio of 9.17. The share price has been as high as $66.78 and as low as $29.36 in the last 52 weeks. As of Oct. 20, the stock was trading 21.88% below its 52-week high and 77.69% above its 52-week low.

With 2.84% of outstanding shares, John Rogers (Trades, Portfolio) is the company's most notable guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.92% and Pioneer Investments (Trades, Portfolio) with 0.63%.

AutoNation

AutoNation Inc. (AN) has a three-star business predictability rank and, according to the DCF calculator, a 7.98% margin of safety at an average price of $61.01 per share.

The U.S. automotive dealer has a market cap of $5.41 billion and an enterprise value of $10.08 billion. Over the past five years, its revenue and earnings per share have grown 1.80% and 6.20%, respectively.

Shares have risen 21% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 18.03. The share price has been as high as $64.24 and as low as $20.59 in the last 52 weeks. As of Oct. 20, the stock was trading 3.47% below its 52-week high and 201.17% above its 52-week low.

With 2.58% of outstanding shares, Edward Lampert (Trades, Portfolio) is the company's largest guru shareholder, followed by Gabelli with 0.64% and Simons with 0.43%.

Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd (NCLH) has a five-star business predictability rank and, according to the DCF calculator, a 106.32% margin of safety at an average price of $16.45 per share.

The cruise company has a market cap of $4.53 billion and an enterprise value of $12.62 billion. Over the past five years, its revenue has increased 14.50% and its earnings per share have risen 25%.

Shares have declined 67.71% compared to 12 months ago. The stock is currently trading with a price-book ratio of 0.97. The share price has been as high as $59.78 and as low as $7.03 in the last 52 weeks. As of Oct. 20, the stock was trading 72.48% below its 52-week high and 134% above its 52-week low.

With 1.39% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Rogers with 0.35% and Pioneer Investments (Trades, Portfolio) with 0.12%.

Disclosure: I do not own any stocks mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.