There is a general perception that investing in stocks is all about the products and services that companies provide. That, of course, is true but not exclusively. It is also true that investing is about the companies whose products and services contribute to other companies’ success.
For example, a company may manufacture and sell recreational clothing, but other companies are behind the fabrics, inks, dyes and other materials that make the final products possible. Still other companies are involved in the transportation and distribution of those products.
With that in mind, I used the All-In-One Screener to identify the undervalued industrial stocks in the U.S. that have been given 5-star business predictability ratings. I selected North America as the region and USA as the country, then I selected the Industrial sector and let the Screener do the rest.
Here is what I found:
W. W. Grainger Inc.
W. W. Grainger Inc. (GWW, Financial), a Lake Forest, Ill.-based industrial supply company, sold for $212.04 per share late Friday.
It has a market cap of $13.31 billion and an enterprise value of $14.95 billion. It has a P/E of 18.6, a forward P/E of 16.6, a P/B of 5.6 and a P/S of 1.4. GuruFocus has given W. W. Grainger a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.
First Eagle Investment (Trades, Portfolio) is W. W. Grainger’s leading shareholder among the gurus with 714,596 shares in his portfolio. Jeremy Grantham (Trades, Portfolio), Jim Simons (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Chuck Royce (Trades, Portfolio), John Rogers (Trades, Portfolio), Westport Asset Management (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Chris Davis (Trades, Portfolio) and First Pacific Advisors (Trades, Portfolio) also have shares of W. W. Grainger in their portfolios.
Middleby Corp.
Middleby Corp. (MIDD, Financial) is an Elgin, Ill.-based cooking and industrial process equipment company. Its shares sold for $119.42 apiece late Friday.
The Middleby Corp. has a market cap of $6.84 billion and an enterprise value of $7.37 billion. It has a P/E of 33.4, a forward P/E of 23.9, a P/B of 6.3 and a P/S of 4.0. GuruFocus has given Middleby a Financial Strength rating of 8/10 and a Profitability and Growth rating of 9/10.
Ron Baron (Trades, Portfolio) is Middleby’s leading shareholder among the gurus with 4,167,999 shares in his portfolio. Alan Fournier (Trades, Portfolio), Columbia Wanger (Trades, Portfolio), John Rogers (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Jim Simons (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) also have shares of Middleby in their portfolios.
Alliance Data Systems Corp.
Alliance Data Systems Corp. (ADS, Financial) is a Plano, Texas-based provider of loyalty marketing services. Alliance Data Systems sold for $297.95 per share late Friday.
Alliance Data Systems has a market cap of $18.32 billion and an enterprise value of $27.58 billion. It has a P/E of 36.1, a forward P/E of 17.4, a P/B of 9.5 and a P/S of 3.1. GuruFocus has given Alliance Data Systems a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10.
Ronald Muhlenkamp (Trades, Portfolio) is Alliance Data Systems’ leading shareholder among the gurus with 121,215 shares in his portfolio. Joel Greenblatt (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio) also have shares of Alliance Data Systems in their portfolios.
Synnex Corp.
Synnex Corp. (SNX, Financial) is a Fremont, Calif.-based supply chain services company. Its shares sold for $95.45 apiece late Friday.
Synnex has a market cap of $3.78 billion and an enterprise value of $4.2 billion. It has a P/E of 18.4, a forward P/E of 13.5, a P/B of 2.2 and a P/S of 0.3. GuruFocus has given Synnex a Financial Strength rating of 7/10 and a Profitability and Growth rating of 7/10.
Sarah Ketterer (Trades, Portfolio) is Synnex’s leading shareholder among the gurus with 873,671 shares in her portfolio. Jim Simons (Trades, Portfolio), Scott Black (Trades, Portfolio), James Barrow (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Synnex in their portfolios.
Heico Corp.
Heico Corp. (HEI, Financial) (HEI.A, Financial) is based in Hollywood, Fla. It makes and sells products for the aerospace, defense and electronics industries. Shares of Heico (HEI) sold for $51.86 apiece late Friday.
Heico (HEI, Financial) has a market cap of $3.47 billion and an enterprise value of $4.03 billion. It has a P/E of 23.9, a forward P/E of 23.9, a P/B of 3.8 and a P/S of 3.0. GuruFocus has given Heico (HEI) a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
Ken Fisher (Trades, Portfolio) is Heico’s leading shareholder among the gurus with 1,011,693 shares in his portfolio. Chuck Royce (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Mario Gabelli (Trades, Portfolio) and Jim Simons (Trades, Portfolio) have shares of Heico (HEI, Financial) in their portfolios.
Heico (HEI.A, Financial) has a market cap of $3.08 billion and an enterprise value of $3.43 billion. It has a P/E of 24.4, a forward P/E of 21.1, a P/B of 4.0 and a P/S of 2.7. GuruFocus has given Heico (HEI.A) a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.
Columbia Wanger (Trades, Portfolio) is the leading shareholder among the gurus with 4,646,138 shares in its portfolio. RS Investment Management (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Murray Stahl (Trades, Portfolio) and Jim Simons (Trades, Portfolio) have shares of Heico (HEI.A, Financial) in their portfolios.
That stock sold for $46.04 per share late Friday.
Westinghouse Air Brake Technologies Corp.
Westinghouse Air Brake Technologies Corp. (WAB, Financial) makes products for the railway industry. Based in Wilmerding, Pa., it sold for $77.6 per share late Friday.
Westinghouse Air Brake Technologies has a market cap of $7.49 billion and an enterprise value of $7.73 billion. It has a P/E of 19.3, a forward P/E of 16.8, a P/B of 3.8 and a P/S of 2.3. GuruFocus has given Westinghouse Air Brake Technologies a Financial Strength rating of 4/10 and a Profitability and Growth rating of 9/10.
Columbia Wanger (Trades, Portfolio) is Westinghouse Air Brake Technologies’ leading shareholder among the gurus with 662,474 shares in its portfolio. Ron Baron (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Jim Simons (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), John Keeley (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and First Pacific Advisors (Trades, Portfolio) also have shares of Westinghouse Air Brake Technologies in their portfolios.
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