According to the Good Companies Screen, a Premium value screen nested under the All-in-One Screener, five good companies that have outperformed the Standard & Poor’s 500 index benchmark over the past 12 months include AutoZone Inc. (AZO, Financial), Edwards Lifesciences Corp. (EW, Financial), The Home Depot Inc. (HD, Financial), Winmark Corp. (WINA, Financial) and Fastenal Co. (FAST, Financial).
U.S. markets continue volatile January
On Monday, the Dow Jones Industrial Average closed at 34,364.50, up 99.13 points from last Friday’s close of 34,265.37 and more than 1,200 points above the intraday low of 33,150.33. Despite this, the 30-stock index is still down approximately 1,000 points from last Tuesday’s close of 35,368.47.
Stocks rebounded despite the markets tumbling over the past seven days while the CBOE Volatility Index climbed to 29.90, the highest level since November 2021.
As markets continue a volatile first month of 2022, GuruFocus’ Good Companies value screen listed five stocks that have high profitability and outperformed the S&P 500 over the past 12 months. The Good Companies screen looks for companies with increasing profit margins over the past five years and good revenue and earnings growth over the past 10 years.
AutoZone
Shares of AutoZone (AZO, Financial) traded around $1,947.61, showing the stock has outperformed the S&P 500 by approximately 40.32% over the past 12 months. The stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.16.
GuruFocus ranks the Memphis, Tennessee-based auto part company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that are outperforming more than 90% of global competitors.
Gurus with holdings in AutoZone include Jim Simons (Trades, Portfolio)’ Renaissance Technologies and Tweedy Browne (Trades, Portfolio).
Edwards Lifesciences
Shares of Edwards Lifesciences (EW, Financial) traded around $108.76, showing the stock has outperformed the S&P 500 by approximately 13.64% over the past 12 months. The stock is fairly valued based on Monday’s price-to-GF Value ratio of 1.11.
GuruFocus ranks the Irvine, California-based medical device company’s profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank, a high Piotroski F-score of 8 and profit margins and returns that are outperforming more than 90% of global competitors.
Home Depot
Shares of Home Depot (HD, Financial) traded around $358.18, showing the stock has outperformed the S&P 500 by approximately 11.97%. The stock is fairly valued based on Monday’s price-to-GF Value ratio of 1.07.
GuruFocus ranks the Atlanta-based home furnishing retail company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and profit margins and returns that are outperforming more than 88% of global competitors.
Winmark
Shares of Winmark (WINA, Financial) traded around $220.35, showing the stock has outperformed the S&P 500 by approximately 7.94%. The stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.13.
GuruFocus ranks the Minneapolis-based retail franchising company’s profitability 9 out of 10 on several positive investing signs, which include a three-star business predictability rank, a high Piotroski F-score of 8 and profit margins and returns that outperform more than 98% of global competitors.
Fastenal
Shares of Fastenal (FAST, Financial) traded around $56.71, showing the stock has outperformed the S&P 500 by approximately 4.17% over the past 12 months. The stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.20.
GuruFocus ranks the Winona, Minnesota-based fastener company’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that are outperforming more than 93% of global competitors.
