5 Guru Stocks With Predictable Business

The Interpublic Group of Companies makes the list

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Feb 08, 2021
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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 Feb. 8.

LKQ

LKQ Corp. (LKQ) has a four-star business predictability rank and, according to the discounted cash flow calculator, a 6.55% margin of safety at an average price of $36.45 per share.

The company, which provides non-OEM automotive parts, has a market cap of $11.05 billion and an enterprise value of $15.11 billion. Over the past five years, its revenue and earnings per share have increased 14.40% and 6.40%, respectively.

Over the past 12 months, the stock has risen 9.74% and is currently trading with a price-earnings ratio of 18.53. The share price has been as high as $40 and as low as $13.31 in the last year. As of Feb. 8, the stock was trading 8.97% below its 52-week high and 173.82% above its 52-week low.

With 7.08% of outstanding shares, ValueAct Holdings LP (Trades, Portfolio) is the company's largest guru shareholder, followed by Charles de Vaulx (Trades, Portfolio) with 0.65% and Wallace Weitz (Trades, Portfolio) with 0.20%.

BorgWarner

BorgWarner Inc. (BWA) has a three-star business predictability rank and, according to the DCF calculator, a 13.49% margin of safety at the average price of $43.10 per share.

The auto-parts supplier has a market cap of $10.54 billion and an enterprise value of $11.41 billion. Over the past five years, its revenue has grown 5.60% and its earnings per share have risen 7.50%.

The stock has risen 29% over the past 12 months and shares are trading with a price-earnings ratio of 24.63. The share price has been as high as $46.48 and as low as $17 in the last 52 weeks. As of Feb. 8, the stock was trading 7.27% below its 52-week high and 153.53% above its 52-week low.

The company's largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 4.08% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.77% and John Rogers (Trades, Portfolio) with 0.76%.

Globe Life

Globe Life Inc. (GL) has a three-star business predictability rank and, according to the DCF calculator, a 26.04% margin of safety at an average price of $93.66 per share.

The insurance holding company has a $9.80 billion market cap and an enterprise value of $11.67 billion. Over the past five years, its revenue has increased 4.60% and its earnings per share have risen 15.10%.

The share price has declined 13.89% over the past 12 months. The stock is trading with a price-earnings ratio of 13.71. The share price has been as high as $111.43 and as low as $56.74 in the last 52 weeks. As of Feb. 8, the stock was trading 15.95% below its 52-week high and 65.07% above its 52-week low.

With 6.07% of outstanding shares, Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway is the company's largest guru shareholder, followed by NWQ Managers (Trades, Portfolio) with 0.26% and Richard Pzena (Trades, Portfolio) with 0.23%.

The Interpublic Group of Companies

The Interpublic Group of Companies Inc. (IPG) has a five-star business predictability rank and, according to the DCF calculator, a 28.13% margin of safety at an average price of $25.98 per share.

The holding company, which provides traditional advertising services, has a market cap of $10.13 billion and an enterprise value of $14.24 billion. Over the past five years, its revenue has increased 6.70%.

Shares have risen 12.18% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 18.04. The share price has been as high as $26.58 and as low as $11.63 in the last 52 weeks. As of Feb 8, the stock was trading 2.26% below its 52-week high and 123.39% above its 52-week low.

The company's largest guru shareholder is John Rogers (Trades, Portfolio) with 2.46% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.34% and HOTCHKIS & WILEY with 0.83%.

Gentex

Gentex Corp. (GNTX) has a 3.5-star business predictability rank and, according to the DCF calculator, a 6.54% margin of safety at an average price of $34.88 per share.

The company, which manufactures smoke-detection equipment, has a market cap of $8.55 billion and an enterprise value of $8.12 billion. Over the past five years, its revenue has grown 6.20% and its earnings per share have risen 12.20%.

Shares have increased 17% compared to 12 months ago. The share price has been as high as $37.75 and as low as $19.48 in the last 52 weeks. As of Feb. 8, the stock was trading 7.60% below its 52-week high and 79.06% above its 52-week low.

With 1.87% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Chuck Royce (Trades, Portfolio) with 0.81% and Steven Cohen (Trades, Portfolio) with 0.67%.

Disclosure: I do not own any stocks mentioned.

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