High-Quality Stocks: Priceline, Nike, Novo Nordisk

These 7 companies receive high predictability ratings

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Jul 28, 2017
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According to GuruFocus’ All-in-One Screener, the following stocks have high business predictability ratings, and total returns since the beginning of the year are positive. At least five gurus are shareholders in the companies.

Morningstar Inc. (MORN)

The company is a provider of independent investment research in North America, Europe, Australia and Asia. It offers products and services for financial advisers, asset managers, retirement plan providers and sponsors and individual investors.

GuruFocus gives the company a business predictability rating of 5 out of 5 stars. The stock has risen by 13.4% since the beginning of the year.

The stock is trading with a price-earnings (P/E) ratio of 23.77. The price has been as high as $85.43 and as low as $67.74 over the last 52 weeks. It is 73.16% below its 52-week high and 22.13% above its 52-week low. According to the discounted cash flow (DCF) calculator, the stock is overpriced by 70% at $82.73.

Three hedge funds hold the company for a total of 2.2 million shares. Ron Baron (Trades, Portfolio) is the largest shareholder among the gurus with 3.57% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 1.54%, Jim Simons (Trades, Portfolio) with 1.37% and Murray Stahl (Trades, Portfolio) with 0.01%.

MasTec Inc. (MTZ)

It is an infrastructure construction company engaged in engineering, building, installation, maintenance and upgrade of communications, energy and utility infrastructure. The company offers its services under the MasTec service mark.

GuruFocus gives the company a business predictability rating of 3.5 out of 5 stars. The stock has risen by 20.8% since the beginning of the year.

The stock is trading with a P/E ratio of 21.61. The price has been as high as $47.90 and as low as $23.86 the last 52 weeks. It is 3.55% below its 52-week high and 93.63% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 102% at $46.2.

Four gurus are holding a total of 335,034 shares. The largest shareholder among the gurus is Royce with 0.36% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 0.3%, Paul Tudor Jones (Trades, Portfolio) with 0.03%, Jeremy Grantham (Trades, Portfolio) with 0.03%, Stahl with 0.01% and Barrow, Hanley, Mewhinney & Strauss with 0.01%.

Nike Inc. Class BĂ‚ (NKE)

The company designs, develops and markets footwear, apparel, equipment and accessory products. It is a seller of athletic footwear and athletic apparel. It sells its products through NIKE-owned in-line and factory retail stores and internet Web sites.

GuruFocus gives the company a business predictability rating of 5 out of 5 stars. The stock has risen by 15.5% year to date.

The stock is trading with a P/E ratio of 23.25. The price has been as high as $60.33 and as low as $49.01 the last 52 weeks. It is 3.27% below its 52-week high and 19.08% above its 52-week low. According to the DCF calculator, the stock is overpriced by 31% at $58.36.

Eight gurus are holding 7.8 million shares. Steve Mandel (Trades, Portfolio) is the largest shareholder among the gurus with 1.17% of outstanding shares followed by Spiros Segalas (Trades, Portfolio) with 0.57%, Frank Sands (Trades, Portfolio) with 0.35%, John Griffin (Trades, Portfolio) with 0.33%, Pioneer Investments (Trades, Portfolio) with 0.19%, Grantham with 0.11% and Manning & Napier Advisors Inc. with 0.06%.

NetEase Inc. ADRĂ‚ (NTES)

The company functions in the internet content market. Through online communities, it provides Chinese language content and value-added services.

GuruFocus gives the company a business predictability rating of 5 out of 5 stars. The stock has risen by 45.9% since the start of the year.

The stock is trading with a P/E ratio of 21.48. The price has been as high as $337.55 and as low as $197 the last 52 weeks. It is 7.52% below its 52-week high and 58.45% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 24% at $312.15.

Four gurus are holding a total of 1.1 million shares. The largest shareholder among the gurus is Simons with 1.73% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.25%, Sarah Ketterer (Trades, Portfolio) with 0.25%, Chase Coleman (Trades, Portfolio) with 0.21%, Manning & Napier Advisors with 0.19% and Ken Heebner (Trades, Portfolio) with 0.18%.

Novo Nordisk A/S ADRĂ‚ (NVO)

It is a health care company. It is engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The company's business segments include diabetes and obesity care and biopharmaceuticals.

GuruFocus gives the company a business predictability rating of 5 out of 5 stars. The stock has risen by 18.9% since the beginning of the year.

The stock is trading with a P/E ratio of 17.43. The price has been as high as $57.41 and as low as $30.89 the last 52 weeks. It is 26.86% below its 52-week high and 35.93% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 34% at $41.99.

Three gurus are holding a total of 11.7 million shares of the company. Simons is the largest shareholder among the gurus with 0.64% of outstanding shares followed by Fisher with 0.46% and Tom Gayner (Trades, Portfolio) with 0.04%.

Old Dominion Freight Lines Inc. (ODFL)

The company is a less-than-truckload, union-free motor carrier providing regional, interregional and national LTL service and value-added logistics services. It offers logistics services to its customers.

GuruFocus gives the company a business predictability rating of 3.5 out of 5 stars. The stock has risen by 17.3% since the start of the year.

The stock is trading with a P/E ratio of 27.58. The price has been as high as $100.71 and as low as $66.33 the last 52 weeks. It is 0.31% below its 52-week high and 51.36% above its 52-week low. According to the DCF calculator, the stock is undervalued with a margin of safety of 4% at $100.4.

Three gurus are holding a total of 445,012 shares. The largest shareholder among the gurus is Columbia Wanger (Trades, Portfolio) with 0.49% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 0.14%, Simons with 0.06%, Royce with 0.04% and Fisher with 0.01%.

The Priceline Group Inc. (PCLN)

The company is one of the largest online travel agencies. Through its branded sites it offers booking services for hotel and vacation rooms, airline tickets, rental cars, restaurant reservations, cruises and other vacation packages.

GuruFocus gives the company a business predictability rating of 5 out of 5 stars. The stock has risen by 38.7% since the beginning of the year.

The stock is trading with a P/E ratio of 45.90. The price has been as high as $2,037 and as low as $1,310 the last 52 weeks. It is 0.19% below its 52-week high and 55.21% above its 52-week low. According to the DCF calculator, the stock is overpriced by 61% at $2,033.21.

Nine gurus are holding a total of 2.4 million shares. Sands is the largest shareholder among the gurus with 2.44% of outstanding shares followed by Coleman with 2.16%, Dodge & Cox with 1.67%, Segalas with 0.67%, Mandel with 0.6%, Simons with 0.41% and Manning & Napier Advisors with 0.36%.

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