6 Stocks Beating the Market

Activision Blizzard, American Express, Boeing among outperforming companies

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Jul 24, 2017
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According to GuruFocus' All-in-One Screener, the following are some of the stocks that have outperformed the Standard & Poor's 500 Index over the last 12 months and were bought by gurus during the last quarter.

With a market cap of $45.9 billion,Ă‚ Activision Blizzard Inc. (ATVI, Financial) has outperformed the S&P 500 Index by 34.2% over the last 12 months.

The company is a video game publisher. Its gaming portfolio includes the "World of Warcraft" and "Call of Duty" franchises.

Its shares are trading with a price-book (P/B) ratio of 4.90. According to the discounted cash flow (DCF) calculator, the stock is overpriced by 62% at $60.93 per share. The price is 74.63% above its 52-week low and 0.41% below its 52-week high.

The company has a profitability and growth rating of 9 out of 10. Its return on equity (ROE) of -11.34% and return on assets (ROA) of 5.80% are outperforming 62% of other companies in the Global Electronic Gaming and Multimedia industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.74 is below the industry median of 7.63.

The company’s largest shareholder among the gurus is Steve Mandel (Trades, Portfolio) with 3.52% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.34%, Spiros Segalas (Trades, Portfolio) with 0.86%, Caxton Associates (Trades, Portfolio) with 0.43% and Jim Simons (Trades, Portfolio) with 0.18%.

With a market cap of $102.9 billion,Ă‚ Broadcom Ltd.Ă‚ (AVGO, Financial) has outperformed the S&P 500 Index by 45.8% over the last 12 months.

The company manufactures analog and digital semiconductor connectivity solutions. Its product portfolio serves wired infrastructure, wireless communications, enterprise storage and industrial and other end markets.

Its shares are trading with a P/B ratio of 5.24. The price is 61.54% above its 52-week low and 1.43% below its 52-week high.

The company has a profitability and growth rating of 8 out of 10. Its ROE of –1.30% and ROA of -0.50% are underperforming 70% of other companies in the Global Semiconductors industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.33 is below the industry median of 1.76.

Mandel is the largest shareholder of the company among the gurus with 1.31% of outstanding shares, followed by Andreas Halvorsen (Trades, Portfolio) with 0.87%, Segalas with 0.43%, Pioneer Investments (Trades, Portfolio) with 0.3%, Louis Moore Bacon (Trades, Portfolio) with 0.06% and Steven Cohen (Trades, Portfolio) with 0.05%.

With a market cap of $8.3 billion,Ă‚ Avery Dennison Corp. (AVY, Financial) has outperformed the S&P 500 Index by 17.9% over the last 12 months.

The company manufactures miscellaneous business equipment, including pressure-sensitive materials, office products and a variety of tickets, tags, labels and other converted products.

Its shares are trading with a P/B ratio of 58.17. According to the DCF calculator, the stock is overpriced by 130% at $93.8 per share. The price is 36.25% above its 52-week low and 0.96% below its 52-week high.

The company has a profitability and growth rating of 8 out of 10. Its ROE of -34.98% and ROA of 7.69% are outperforming 78% of other companies in the Global Business Equipment industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.19 is below the industry median of 1.01.

The company’s largest shareholder among the gurus is Simons with 10.46% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.13% and Mariko Gordon (Trades, Portfolio) with 0.04%.

With a market cap of $75.4 billion,Ă‚ American Express Co.Ă‚ (AXP, Financial) has outperformed the S&P 500 Index by 22.8% over the last 12 months.

The payments company provides charge and credit card products, travel services, network services, stored value products, loans and other products and services to businesses and individuals.

Its shares are trading with a P/B ratio of 3.68. According to the DCF calculator, the stock is overpriced by 10% at $85.59 per share. The price is 43.73% above its 52-week low and 0.42% below its 52-week high.

The company has a profitability and growth rating of 6 out of 10. Its ROE of 24.53% and ROA of 3.29% are outperforming 57% of other companies in the Global Credit Services industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.53 is below the industry median of 1.44.

Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder with 16.96% of outstanding shares, followed by Dodge & Cox with 3.14%, Barrow, Hanley, Mewhinney & Strauss with 1.9%, First Eagle Investment (Trades, Portfolio) with 1.82%, Chris Davis (Trades, Portfolio) with 1.32% and Ken Fisher (Trades, Portfolio) with 1.26%.

With a market cap of $5.49 billion,Ă‚ Axis Capital Holdings Ltd. (AXS, Financial) has outperformed the S&P 500 Index by 11.3% over the last 12 months.

Axis is a global property and casualty insurance company. It provides its clients and distribution partners with various products and services around the world.

Its shares are trading with a P/B ratio of 1.09. According to the DCF calculator, the stock is overpriced by 25% at $65 per share. The price is 21.04% above its 52-week low and 10.29% below its 52-week high.

The company has a profitability and growth rating of 6 out of 10. While its ROE of 7.10% is underperforming the sector, the ROA of 2.30% is outperforming 54% of other companies in the Global Insurance - Property and Casualty industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.17 is below the industry median of 2.41.

With 5.6% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by NWQ Managers (Trades, Portfolio) with 0.95%, Donald Smith (Trades, Portfolio) with 0.48%, Simons with 0.2%, John Buckingham (Trades, Portfolio) with 0.11% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

With a market cap of $128 billion,Ă‚ Boeing Co. (BA, Financial) has outperformed the S&P 500 Index by 48.4% over the last 12 months.

The company manufactures commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services.

Its shares are trading with a P/B ratio of 1,334.87. According to the DCF calculator, the stock is overpriced by 69% at $212.14 per share. The price 64.86% above its 52-week low and 0.71% below its 52-week high.

The company has a profitability and growth rating of 8 out of 10. Its ROE of 335.69% and ROA of 5.70% are outperforming 71% of other companies in the Global Aerospace and Defense industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.85 is above the industry median of 0.54.

The company’s largest shareholder among the gurus is Segalas with 0.38% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.36%, Hotchkis & Wiley with 0.26%, PRIMECAP Management with 0.17%, Joel Greenblatt (Trades, Portfolio) with 0.08% and Fisher with 0.05%.

Disclosure: I do not own any shares of any stocks mentioned in this article.