The GuruFocus business predictability rating ranks companies on a five-star scale, defining the more predictable companies as businesses whose revenue per share and Ebitda per share (or book value per share in the case of financial stocks) have been growing steadily and who have produced a strong long-term performance of their stock prices.
Thus, those following a long-term investment strategy could find attractive investing opportunities by screening the market for stocks that have a high GuruFocus business predictability rating. The following stocks all trade with high business predictability ratings and are recommended by Wall Street.
CoStar Group Inc.
The first company that meets the criteria is CoStar Group Inc. (CSGP, Financial), a Washington, DC-based provider of online marketplace, information and analytics services to the North American and international commercial and residential real estate industries.
CoStar Group Inc.'s business has received a 4.5-star rating for business predictability from GuruFocus. The company saw its revenue per share increase by 16.20% and its Ebitda per share increase by 24% on average every year over the past decade.
The stock's price during regular trading on Wednesday was $76.51, giving it a current market cap of $30.34 billion.
GuruFocus assigned a financial strength rating of 8 out of 10 and a profitability rating of 9 out of 10 to the company.
The price-earnings ratio is 91.21 versus the industry median of 10.29, the enterprise-value-to-Ebitda ratio is 45.43 versus the industry median of 10.56 and the price-sales ratio is 14.67 versus the industry median of 2.8.
Wall Street sell-side analysts issued a median recommendation rating of buy for this stock and have established an average target price of about $81.20 per share.
Lululemon Athletica Inc.
The second company that meets the criteria is Lululemon Athletica Inc. (LULU, Financial), a Vancouver, Canada-based operator of 574 apparel stores in North America and internationally for the sale of pants, shorts, tops, jackets and fitness-related accessories for a healthy lifestyle. Under the Lululemon brand, the goods are also offered directly to consumers through the Lululemon.com e-commerce website and mobile apps.
Lululemon Athletica Inc.’s business has a 4-star business predictability rank from GuruFocus. The company saw its revenue per share increase by 19.40% and its Ebitda per share increase by 17.10% on average every year over the past decade.
The stock's price during regular trading on Wednesday was $326.84, giving it a current market cap of $41.72 billion.
GuruFocus assigned a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10 to the company.
The price-earnings ratio is 38.4 versus the industry median of 15.73, the enterprise-value-to-Ebitda ratio is 23.78 versus the industry median of 8.81 and the price-sales ratio is 5.97 versus the industry median of 0.7.
Wall Street sell-side analysts issued a median recommendation rating of overweight for the stock with an average target price of $378.56 per share.
Global Payments Inc.
The third company that meets the criteria is Global Payments Inc. (GPN, Financial), an Atlanta, Georgia-based provider of payment technology and software solutions for card, check and electronic payments in North America and internationally.
Global Payments Inc.’s business has a 4-star business predictability rank from GuruFocus. The company saw its revenue per share increase by 8.50% and its Ebitda per share increase by 16.30% on average every year over the past decade.
The stock's price during regular trading on Wednesday was $127.29, giving it a current market cap of $35.25 billion.
GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10 to the company.
The price-earnings ratio is 706.6 versus the industry median of 16.35, the enterprise-value-to-Ebitda ratio is 20.15 versus the industry median of 8.86 and the price-sales ratio is 4.11 versus the industry median of 1.15.
Wall Street sell-side analysts issued a median recommendation rating of overweight for the stock with an average target price of $167.36 per share.
