5 Guru Stocks with Predictable Business

Simpson Manufacturing tops the list

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Nov 12, 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 Nov. 12.

Maximus

Maximus Inc. (MMS) has a 3.5-star business predictability rank and, according to the discounted cash flow calculator, a 9.41% margin of safety at an average price of $74.29 per share.

The operator of U.S. government health and human services programs has a market cap of $4.57 billion and an enterprise value of $4.82 billion. Over the past five years, its revenue and earnings per share have increased 9.10% and 12.30%, respectively.

Over the past 12 months, the stock has declined 1.73% and is currently trading with a price-earnings ratio of 22.53. The share price has been as high as $80.50 and as low as $46.42 in the last year. As of Nov. 12, the stock was trading 7.71% below its 52-week high and 60.04% above its 52-week low.

With 0.38% of outstanding shares Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.29% and Chuck Royce (Trades, Portfolio) with 0.14%.

Nexstar

Nexstar Media Group Inc. (NXST) has a 4.5-star business predictability rank and, according to the DCF calculator, a 25.73% margin of safety at the average price of $95 per share.

The U.S television station owner/operator has a market cap of $4.18 billion and an enterprise value of $11.71 billion. Over the past five years, its revenue has grown 41% and its earnings per share have risen 30.20%.

The stock has lost 10.81% over the last 12 months and shares are trading with a price-earnings ratio of 8.01. The share price has been as high as $133.25 and as low as $43.37 in the last 52 weeks. As of Nov. 12, the stock was trading 29.20% below its 52-week high and 117.52% above its 52-week low.

With 4.60% of outstanding shares, Seth Klarman (Trades, Portfolio) is the company's largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio)'s GAMCO Investors with 0.21% and Pioneer Investments (Trades, Portfolio) with 0.17%.

Simpson Manufacturing

Simpson Manufacturing Co Inc. (SSD) has a five star business predictability rank and, according to the DCF calculator, a 21.34% margin of safety at an average price of $94.11 per share.

The company, which manufactures wood construction products, has a $4.09 billion market cap and an enterprise value of $3.89 billion. Over the past five years, its revenue has increased 9.30% and its earnings per share have risen 19.60%.

The share price has risen 11% over the past 12 months. The stock is trading with a price-earnings ratio of 22.30. The share price has been as high as $104 and as low as $47 in the last 52 weeks. As of Nov. 12, the stock was trading 11.20% below its 52-week high and 97% above its 52-week low.

With 1.64% of outstanding shares, John Rogers (Trades, Portfolio) is the company's most notable guru shareholder, followed by Royce with 1.10% and Simons with 0.56%.

Asbury Automotive

Asbury Automotive Group Inc. (ABG) has a 5-star business predictability rank and, according to the DCF calculator, a 59.65% margin of safety at an average price of $124.05 per share.

The company has a market cap of $2.45 billion and an enterprise value of $4.60 billion. Over the past five years, its revenue and earnings per share have grown 3.30% and 16.60%, respectively.

Shares have gained 16% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 11.78. The share price has been as high as $129.57and as low as $39.36 in the last 52 weeks. As of Nov. 12, the stock was trading 4.26% below its 52-week high and 215.17% above its 52-week low.

With 10.98% of outstanding shares, David Abrams (Trades, Portfolio) is the company's largest guru shareholder, followed by Royce with 0.26% and Simons with 0.21%.

Allegiant Travel

Allegiant Travel Co. (ALGT) has a 4.5-star business predictability rank and, according to the DCF calculator, a 195.37% margin of safety at an average price of $153 per share.

The U.S travel services provider has a market cap of $2.52 billion and an enterprise value of $3.47 billion. Over the past five years, its revenue has increased 10% and its earnings per share have risen 13.80%.

Shares have declined 9.33% compared to 12 months ago. The stock is currently trading with a price-book ratio of 3.52. The share price has been as high as $183.26 and as low as $60 in the last 52 weeks. As of Nov. 12, the stock was trading 16.39% below its 52-week high and 155.13% above its 52-week low.

With 2.63% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Royce with 0.47% and PRIMECAP Management (Trades, Portfolio) with 0.24%.

Disclosure: I do not own any stocks mentioned.

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