5 Predictable Stocks With a Margin of Safety

Home BancShares tops the list

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Tiziano Frateschi
Apr 22, 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 April 22.

Meritage Homes

Meritage Homes Corp. (MTH) has a 3.5-star business predictability rank and, according to the discounted cash flow calculator, a 39.26% margin of safety at an average price of $98.79 per share.

The U.S. residential construction company has a market cap of $3.74 billion and an enterprise value of $4.04 billion. Over the past five years, its revenue and earnings per share have increased 10.20% and 27.90%, respectively.

Over the past 12 months, the stock has climbed 151.31% and is currently trading with a price-earnings ratio of 8.96. The share price has been as high as $117.06 and as low as $34.32 in the last year. As of April 22, the stock was trading 15.61% below its 52-week high and 187.85% above its 52-week low.

The largest guru shareholder of the company is

Ken Fisher (Trades, Portfolio) with 3.64% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.41% and Ronald Muhlenkamp (Trades, Portfolio) with 0.32%.

Home BancShares

Home BancShares Inc. (HOMB) has a 3.5-star business predictability rank and, according to the DCF calculator, a 65.39% margin of safety at an average price of $26.97 per share.

The bank holding company has a market cap of $4.45 billion. Over the past five years, its revenue has grown 10.50% and its earnings per share have climbed 8.60%.

The stock has climbed 134.13% over the past 12 months and shares are trading with a price-earnings ratio of 14.58. The share price has been as high as $29.21 and as low as $10.79 in the last 52 weeks. As of April 22, the stock was trading 7.67% below its 52-week high and 149.95% above its 52-week low.

The largest guru shareholder is

Chuck Royce (Trades, Portfolio) with 0.93% of outstanding shares, followed by Robert Olstein (Trades, Portfolio) with 0.07% and Pioneer Investments (Trades, Portfolio) with 0.01%.

Silgan Holdings

Silgan Holdings Inc. (SLGN) has a 4.5-star business predictability rank and, according to the DCF calculator, a 17.03% margin of safety at an average price of $43.55 per share.

The company, which manufactures metal food containers , has a market cap of $4.79 billion and an enterprise value of $7.63 billion. Over the past five years, its revenue has increased 6.10% and its earnings per share have risen 12.50%.

The share price has increased 31.89% over the past 12 months. The stock is trading with a price-earnings ratio of 15.72. The share price has been as high as $43.71 and as low as $28.95 in the last 52 weeks. As of April 22, the stock was trading 0.37% below its 52-week high and 50.43% above its 52-week low.

The largest guru shareholders of the company are Royce with 0.21% of outstanding shares,

Jeremy Grantham (Trades, Portfolio) with 0.18%, Simons' firm with 0.13% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

Selective Insurance Group

Selective Insurance Group Inc. (SIGI) has a three-star business predictability rank and, according to the DCF calculator, a 54.91% margin of safety at an average price of $77.49 per share.

The U.S. regional property-casualty insurer has a market cap of $4.65 billion. Over the past five years, its revenue has increased 6.70% and its earnings per share have risen 10.20%.

Shares have increased 56.96% compared to 12 months ago. The stock is currently trading with a price-earnings ratio of 18.99. The share price has been as high as $77.84 and as low as $42.14 in the last 52 weeks. As of April 22, the stock was trading 0.45% below its 52-week high and 83.89% above its 52-week low.

The company's largest guru shareholder is Royce with 0.29% of outstanding shares, followed by Simons' firm with 0.05%.

Bank OZK

Bank OZK (OZK) has a 3.5-star business predictability rank and, according to the DCF calculator, a 30.90% margin of safety at an average price of $39.81 per share.

The bank holding company has a market cap of $5.15 billion and an enterprise value of $3.85 billion. Over Over the past five years, its revenue and earnings per share have increased 14.40% and 3.20%, respectively.

Shares have climbed 136.91% compared to 12 months ago. The share price has been as high as $45.83 and as low as $16.17 in the last 52 weeks. As of April 22, the stock was trading 13.14% below its 52-week high and 146.12% above its 52-week low.

The largest guru shareholders of the company are

Diamond Hill Capital (Trades, Portfolio) with 3.22% of outstanding shares, Ray Dalio (Trades, Portfolio) with 0.01%, Jones with 0.01% and Pioneer Investments (Trades, Portfolio) with 0.01%.

Disclosure: I do not own any stocks mentioned.

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