Guru Stocks With Steady Returns, Profitability

Companies with 10 years of strong returns and no debt

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Apr 12, 2016
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According to GuruFocus'Â All-in-One Screener, the following stocks have had strong performance over the last 10 years with high and steady returns, as well as profitability. EPS has also grown steadily with the company’s revenue. Most of these companies have a great cash-to-debt ratio.

Baidu Inc. (BIDU)

Over the 10 years, the company has had an average ROE of 44.52% and an average ROA of 30.13%. EPS had a strong performance, reporting a 10-year growth rate of 91%, supported by revenue that has grown by 75%.

The last reported ROE of 22.43% is outperforming 78% of its competitors, while ROA of 11.24% is outperforming 75% of other companies in the industry. Financial strength is rated by GuruFocus as 9/10 with a cash to debt of 1.87 that is below the industry median of 22.40.

The company is a Chinese language internet search provider. It provides a platform for businesses to reach customers and offers its products and services to users through Baidu.com free of charge.

The main investors among the gurus are Frank Sands (Trades, Portfolio) who holds 1.89% of outstanding shares of the company, Dodge & Cox with 1.09%, Jeremy Grantham (Trades, Portfolio) with 0.72%, David Herro (Trades, Portfolio) with 0.37%, Manning & Napier Advisors with 0.28% and Matthews Pacific Tiger Fund (Trades, Portfolio) with 0.21%.

Sturm Ruger & Co. Inc. (RGR)

Over the past 10 years, the company has had an average ROE of 30.14% and an average ROA of 21.88%. EPS had a strong performance, reporting a 10-year growth rate of 59%, supported by revenue that has grown by 22%.

The last reported ROE of 30.14% is outperforming 90% of its competitors, while ROA of 21.83% is outperforming 97% of other companies in the Global Aerospace & Defense industry. Financial strength is rated by GuruFocus as 9/10 with no debt.

The company offers products in four industry product categories: rifles, shotguns, pistols, and revolvers. The company's firearms are sold through independent wholesale distributors, principally to the commercial sporting market.

Jim Simons (Trades, Portfolio), who holds 0.98% of outstanding shares of the company, is the main guru shareholder followed by Joel Greenblatt (Trades, Portfolio) with 0.54%, Paul Tudor Jones (Trades, Portfolio) with 0.02% and Chuck Royce (Trades, Portfolio) with 0.02%.

MercadoLibre Inc. (MELI)

Over the last 10 years, the company has had an average ROE of 30.50% and an average ROA of 10.50%. EPS had a strong performance, reporting a 10-year growth rate of 59%, supported by revenue that has grown by 21%.

The last reported ROE is 30.50% that is outperforming 92% of its competitors while ROA of 10.50% is outperforming 84% of other companies in the Global Specialty Retail industry. Financial strength is rated by GuruFocus as 8/10 with a cash to debt of 1.25 that is above the industry median of 1.

The company together with its subsidiaries hosts the online commerce platform in Latin America, which is focused on enabling e-commerce and its related services. Its platforms are designed to provide its users a portfolio of services facilitating e-commerce transactions.

The main guru shareholders are Frank Sands (Trades, Portfolio) who holds 3.23% of outstanding shares of the company, Manning & Napier Advisors with 0.3%, Jim Simons (Trades, Portfolio) with 0.03% and Ken Fisher (Trades, Portfolio) with 0.01%.

Keurig Green Mountain Inc. (GMCR)

Over the last 10 years, the company has had an average ROE of 16.51% and an average ROA of 11.28%. EPS had a strong performance, reporting a 10-year growth rate of 57%, supported by revenue that has grown by 39%.

The last reported ROE of 16.51% is outperforming 79% of its competitors, while ROA of 11.28% is outperforming 86% of other companies in the Global Packaged Foods industry. Financial strength is rated by GuruFocus as 8/10 with a cash to debt of 0.36 that is below the industry median of 0.65.

The company is engaged in the coffee and coffeemaker businesses in the U.S. and Canada. It sells Keurig Single Cup brewers and roast high-quality Arabica bean coffees including single-origin, Fair Trade Certified, certified organic, flavored, limited edition and proprietary blends offered in K-Cup and Vue packs for use with its Keurig Single Cup brewers.

Eric Mindich (Trades, Portfolio), who holds 0.73% of outstanding shares of the company, is the main investor of the company among the gurus followed by Joel Greenblatt (Trades, Portfolio) with 0.63%, Mario Gabelli (Trades, Portfolio) with 0.18%, Pioneer Investments (Trades, Portfolio) with 0.16%, Paul Tudor Jones (Trades, Portfolio) with 0.04% and George Soros (Trades, Portfolio) with 0.01%.

Lululemon Athletica Inc. (LULU)

Over the past 10 years, the company has had an average ROE of 24.55% and an average ROA of 20.27%. EPS had a strong performance, reporting a 10-year growth rate of 56%, supported by revenue that has grown by 34%.

The last reported ROE of 24.55% is outperforming 88% of its competitors, while ROA of 20.27% is outperforming 95% of other companies in the Global Apparel Stores industry. Financial strength is rated by GuruFocus as 9/10 with no debt.

The company is engaged in the design, manufacture and distribution of healthy lifestyle inspired athletic apparel, sold through a chain of corporate-owned and operated retail stores, direct to consumer through e-commerce and through a network of wholesale accounts.

The main guru shareholderes are Manning & Napier Advisors, which holds 7.26% of outstanding shares of the company, Steve Mandel (Trades, Portfolio) with 5.06%, Louis Moore Bacon (Trades, Portfolio) with 0.12% and Ron Baron (Trades, Portfolio) with 0.01%.

Apple Inc. (AAPL)

Over the past 10 years, Apple has had an average ROE of 42.94% and an average ROA of 10.47%. EPS had a strong performance, reporting a 10-year growth rate of 47%, supported by revenue that has grown by 35%.

The last reported ROE of 42.94% is outperforming 98% of its competitors, while ROA of 19.47% is outperforming 97% of other companies in the Global Consumer Electronics industry. Financial strength is rated by GuruFocus as 6/10 with a cash to debt of 0.61 that is below the industry median of 1.44.

The company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players, and sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications.

Carl Icahn (Trades, Portfolio), who holds 0.83% of outstanding shares of the company, is the main investor of the company among the gurus followed by Ken Fisher (Trades, Portfolio) with 0.2%, Chase Coleman (Trades, Portfolio) with 0.19%, Pioneer Investments (Trades, Portfolio) with 0.19%, Jeremy Grantham (Trades, Portfolio) with 0.13%, David Einhorn (Trades, Portfolio) with 0.11%, David Rolfe (Trades, Portfolio) with 0.09% and Jim Simons (Trades, Portfolio) with 0.08%.

NetEase Inc. (NTES)

During the last 10 years, the company has had an average ROE of 29.21% and an average ROA of 22.06%. EPS had a strong performance, reporting a 10-year growth rate of 45%, supported by revenue that has grown by 49%.

The last reported ROE of 29.21% is outperforming 86% of its competitors, while ROA of 22.06% is outperforming 95% of other companies in the Global Internet Content & Information industry. Financial strength is rated by GuruFocus as 9/10 with a cash to debt of 4.79 that is below the industry median of 22.40.

The company operates an interactive online community in China and is a provider of Chinese language content and services through its online games, internet portal, e-mail and wireless value-added services businesses.

The main guru shareholders are Jim Simons (Trades, Portfolio) who holds 1.53% of outstanding shares of the company, Value Partners (Trades, Portfolio) with 0.32%, Sarah Ketterer (Trades, Portfolio) with 0.2%, Matthews China Fund (Trades, Portfolio) with 0.09% and Pioneer Investments (Trades, Portfolio) with 0.03%.