5 Predictable Guru Stocks

Ebix makes the list

Author's Avatar
Oct 28, 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. 28.

Sally Beauty

Sally Beauty Holdings Inc. (SBH) has a four-star business predictability rank and, according to the discounted cash flow calculator, a 43.72% margin of safety at an average price of $8.83 per share.

The U.S. professional beauty products retailer has a market cap of $996.48 million and an enterprise value of $2.93 billion. Over the past five years, its revenue and earnings per share have increased 0.70% and 9.10%, respectively.

Over the past 12 months, the stock has declined 46% and is currently trading with a price-earnings ratio of 9.45. The share price has been as high as $21.98 and as low as $6.28 in the last year. As of Oct. 28, the stock was trading 59.83% below its 52-week high and 40.61% above its 52-week low.

With 0.55% of outstanding shares, Mario Gabelli (Trades, Portfolio)'s GAMCO Investors is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.38% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.30%.

ePlus

ePlus Inc. (PLUS) has a 4.5-star business predictability rank and, according to the DCF calculator, a 47.60% margin of safety at the average price of $72.48 per share.

The holding company has a market cap of $982 million and an enterprise value of $949 million. Over the past five years, its revenue has grown 6.20% and its earnings per share have risen 11.80%.

The stock has lost 5.51% over the last 12 months and shares are trading with a price-book ratio of 11.95. The share price has been as high as $99.63 and as low as $42.53 in the last 52 weeks. As of Oct. 28, the stock was trading 27.25% below its 52-week high and 70.42% above its 52-week low.

With 0.88% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Grantham with 0.34% and HOTCHKIS & WILEY with 0.15%.

Winmark

Winmark Corp. (WINA) has a four star business predictability rank and, according to the DCF calculator, a 19.41% margin of safety at an average price of $164.47 per share.

The company, which operates in franchising and leasing, has a $615 million market cap and an enterprise value of $627 million. Over the past five years, its revenue has increased 3.10% and its earnings per share have risen 15.30%.

The share price has lost 10.38% over the past 12 months. The stock is trading with a price-earnings ratio of 21.33. The share price has been as high as $215 and as low as $115 in the last 52 weeks. As of Oct. 28, the stock was trading 23.50% below its 52-week high and 43.02% above its 52-week low.

With 5.27% of outstanding shares, Simons' firm is the company's most notable guru shareholder.

America's Car-Mart

America's Car-Mart Inc. (CRMT) has a three-star business predictability rank and, according to the DCF calculator, a 21.44% margin of safety at an average price of $89.28 per share.

The automotive retailing company has a market cap of $610.86 million and an enterprise value of $841.81 million. Over the past five years, its revenue and earnings per share have grown 6.60% and 31.70%, respectively.

Shares have lost 2% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 11.14. The share price has been as high as $129.70 and as low as $35.18 in the last 52 weeks. As of Oct. 28, the stock was trading 31.16% below its 52-week high and 153.78% above its 52-week low.

With 4.47% of outstanding shares, Royce is the company's largest guru shareholder.

Ebix

Ebix Inc. (EBIX) has a 4.5-star business predictability rank and, according to the DCF calculator, a 57.95% margin of safety at an average price of $19.40 per share.

The company, which provides enterprise cloud e-commerce solutions, has a market cap of $601.88 million and an enterprise value of $1.27 billion. Over the past five years, its revenue has increased 22.40% and its earnings per share have risen 12.30%.

Shares have declined 55% compared to 12 months ago. The stock is currently trading with a price-book ratio of 1.10. The share price has been as high as $44.39 and as low as $8.75 in the last 52 weeks. As of Oct. 28, the stock was trading 56.30% below its 52-week high and 121.71% above its 52-week low.

With 1.29% of outstanding shares, Royce is the company's largest guru shareholder, followed by HOTCHKIS & WILEY with 0.75%.

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.