6 Quality Stocks in Gurus' Portfolios

Bank of Nova Scotia, Comcast top the list

Author's Avatar
Jan 04, 2018
Article's Main Image

According to the GuruFocus All-in-One Screener, the following stocks have high business predictability ratings and positive total returns since the beginning of the year.

Bank of Nova Scotia (BNS, Financial)

The international bank has a market cap of $77.3 billion. GuruFocus gives the company a business predictability rating of 5 out of 5 stars.

The stock has gained 10.4% over the past six months and is trading with a price-earnings (P/E) ratio of 12.75. The price has been as high as $66.78 and as low as $53.86 over the past 52 weeks. It is currently 2.46% below its 52-week high and 20.94% above its 52-week low. According to the discounted cash flow (DCF) calculator, the stock is overvalued by 7% at $65.14.

Of the gurus invested in the bank, Jim Simons (Trades, Portfolio) has the largest holding with 0.06% of outstanding shares, followed by Ray Dalio (Trades, Portfolio) with 0.02%.

Comcast Corp. (CMCSA, Financial)

The media and technology company has a market cap of $191.95 billion. GuruFocus gives the company a business predictability rating of 4.5 stars.

The stock price has risen 6.3% over the past six months and is trading with a P/E ratio of 19.73. The price has been as high as $42.18 and as low as $34.12 over the past 52 weeks. It is currently 2.63% below its 52-week high and 20.39% above its 52-week low. According to the DCF calculator, the stock is undervalued with a 28% margin of safety at $41.07.

Among the gurus invested in Comcast, the largest shareholder is Dodge & Cox with 1.13% of outstanding shares, followed by Steve Mandel (Trades, Portfolio) with 0.48%, First Eagle Investment (Trades, Portfolio) with 0.47% and Ken Fisher (Trades, Portfolio) with 0.2%.

Costco Wholesale Corp. (COST, Financial)

The retailer has a market cap of $82.69 billion. GuruFocus gives the company a business predictability rating of 4.5 stars.

The stock has gained 18.4% over the past six months and is trading with a P/E ratio of 29.91. The price has been as high as $195.35 and as low as $150 over the past 52 weeks. It is currently 3.60% below its 52-week high and 25.55% above its 52-week low. According to the DCF calculator, the stock is overpriced by 99% at $188.32.

With 0.99% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.32% and Chris Davis (Trades, Portfolio) with 0.32%.

Copart Inc. (CPRT, Financial)

The online auto auctioneer has a market cap of $10.08 billion. GuruFocus gives the company a business predictability rating of 5 stars.

The stock price has risen 37.1% over the past six months and is trading with a P/E ratio of 34.30. The price has been as high as $44.76 and as low as $27.56 over the past 52 weeks. It is currently 2.60% below its 52-week high and 57.72% above its 52-week low. According to the DCF calculator, the stock is 78% overvalued at $43.6.

Copart's largest guru shareholder is Chuck Royce (Trades, Portfolio) with 1.51% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.65% and John Hussman (Trades, Portfolio) with 0.09%.

Cognizant Technology Solutions Corp. (CTSH, Financial)

The information technology services provider has a market cap of $41.84 billion. GuruFocus gives the company a business predictability rating of 4 stars.

The stock has gained 7.3% over the past six months and is trading with a P/E ratio of 21.90. The price has been as high as $76.51 and as low as $51.52 over the past 52 weeks. It is currently 7.27% below its 52-week high and 37.71% above its 52-week low. According to the DCF calculator, the stock is undervalued with a 23% margin of safety at $70.95.

With 1.14% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by Grantham with 0.66%, Pioneer Investments (Trades, Portfolio) with 0.58% and Matthews Pacific Tiger Fund (Trades, Portfolio) with 0.36%.

Discover Financial Services (DFS, Financial)

The financial services company has a market cap of $27.95 billion. GuruFocus gives the company a business predictability rating of 4.5 stars.

The stock price has risen 24.8% over the past six months and is trading with a P/E ratio of 13.22. The price has been as high as $76.88 and as low as $57.50 over the past 52 weeks. It is currently 1.13% below its 52-week high and 33.76% above its 52-week low. According to the DCF calculator, the stock is undervalued with a 31% margin of safety at $76.91.

Of the gurus invested in Discover Financial, PRIMECAP Management (Trades, Portfolio) has the largest position with 2.04% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.47% and Hotchkis & Wiley with 1.24%.

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