5 Predictable Stocks With a Margin of Safety

Cintas tops the list with a 5-star rating

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Mar 25, 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 March 25.

D.R. Horton

D.R. Horton Inc. (DHI, Financial) has a 3.5-star business predictability rank and, according to the discounted cash flow calculator, an 73.17% margin of safety at an average price of $83.63 per share.

The U.S. homebuilder has a market cap of $30.42 billion and an enterprise value of $32.51 billion. Over the past five years, its revenue and earnings per share have increased 13.40% and 25.20%.

Over the past 12 months, the stock has climbed 181.71% and is currently trading with a price-earnings ratio of 11.30. The share price has been as high as $87.24 and as low as $25.51 in the last year. As of March 25, the stock was trading 4.14% below its 52-week high and 227.83% above its 52-week low.

The largest guru shareholder of the company is George Soros (Trades, Portfolio) with 1.03% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.35%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.20% and the Smead Value Fund (Trades, Portfolio) with 0.14%.

O'Reilly

O'Reilly Automotive Inc. (ORLY, Financial) has a five-star business predictability rank and, according to the DCF calculator, a 50.77% margin of safety at an average price of $488.10 per share.

The company, which sells aftermarket automotive parts, tools and accessories, has a market cap of $34.27 billion and an enterprise value of $39.97 billion. Over the past five years, its revenue has grown 7.20% and its earnings per share have climbed 20.40%.

The stock has climbed 68% over the past 12 months and shares are trading with a price-earnings ratio of 20.73. The share price has been as high as $496.61 and as low as $251.15 in the last 52 weeks. As of March 25, the stock was trading 1.71% below its 52-week high and 94.06% above its 52-week low.

The largest guru shareholder is Chuck Akre (Trades, Portfolio) with 2.54% of outstanding shares, followed by Pioneer Investments with 1.17% and Diamond Hill Capital (Trades, Portfolio) with 0.52%.

Allstate

Allstate Corp. (ALL, Financial) has a 4.5-star business predictability rank and, according to the DCF calculator, an 84.62% margin of safety at an average price of $113.24 per share.

The U.S. property-casualty insurer has a market cap of $34.30 billion and an enterprise value of $43.72 billion. Over the past five years, its revenue has increased 4.90% and its earnings per share have risen 29.20%.

The share price has climbed 54.87% over the past 12 months. The stock is trading with a price-earnings ratio of 6.48. The share price has been as high as $117.8 and as low as $64.13 in the last 52 weeks. As of March 25, the stock was trading 3.87% below its 52-week high and 76.58% above its 52-week low.

The largest guru shareholders of the company are Pioneer Investments with 0.23% of outstanding shares, Robert Bruce (Trades, Portfolio) with 0.11%, Simons' firm with 0.03% and Mario Gabelli (Trades, Portfolio) with 0.02%.

Cintas

Cintas Corp. (CTAS, Financial) has a five-star business predictability rank and, according to the DCF calculator, an 11.46% margin of safety at an average price of $333.05 per share.

The company, which operates in the business services industry, has a market cap of $34.98 billion. Over the past five years, its revenue has increased 11.20% and its earnings per share have risen 21.90%.

Shares have climbed 84.32% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 36.52. The share price has been as high as $369.19 and as low as $154.33 in the last 52 weeks. As of March 25, the stock was trading 9.79% below its 52-week high and 115.80% above its 52-week low.

The company's largest guru shareholder is Pioneer Investments with 0.11% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.05% and Joel Greenblatt (Trades, Portfolio) with 0.02%.

Bank Bradesco

Bank Bradesco SA (BBDO) has a four-star business predictability rank and, according to the DCF calculator, a 26.28% margin of safety at an average price of $4.18 per share.

The Brazilian bank has a market cap of $36.95 billion and an enterprise value of $53.76 billion. Over the past five years, its revenue has grown 3.30%.

Shares have declined 30.81% compared to 12 months ago. The share price has been as high as $4.9 and as low as $2.58 in the last 52 weeks. As of March 25, the stock was trading 14.69% below its 52-week high and 62.02% above its 52-week low.

Disclosure: I do not own any stocks mentioned.

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