6 Companies With High Business Predictability

Ecolab, Estee Lauder top the list

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Apr 16, 2018
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According to the GuruFocus All-in-One Screener, the following stocks have high business predictability ratings and positive total returns over the past six months. At least five gurus are shareholders of these companies.

Ecolab Inc. (ECL, Financial)

The company, which produces and markets cleaning and sanitation products, has a market cap of $40.77 billion. GuruFocus gives the company a business predictability rating of 3.5 out of five stars.

The stock has gained 5.7% over the past six months and is trading with a price-earnings ratio of 27.51. The price has been as high as $142.64 and as low as $124.46.86 over the past 52 weeks. It is currently 0.88% below its 52-week high and 13.59% above its 52-week low. According to the discounted cash flow calculator, the stock is overpriced by 64% at $141.38.

Among the gurus invested in Ecolab, Bill Gates (Trades, Portfolio) has the largest position with 1.51% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.96% and Pioneer Investments (Trades, Portfolio) with 0.75%.

The Estee Lauder Companies Inc. (EL, Financial)

The beauty products manufacturer has a market cap of $55.71 billion. GuruFocus gives the company a business predictability rating of 4.5 out of five stars.

The stock has risen 19.4% over the past six months and is trading with a price-earnings ratio of 52.60. The price has been as high as $153.59 and as low as $84.70 over the past 52 weeks. It is currently 1.37% below its 52-week high and 78.85% above its 52-week low. According to the DCF calculator, the stock is overpriced by 139% at $151.49.

Of the gurus invested in the company, the largest shareholder is Spiros Segalas (Trades, Portfolio) with 1.11% of outstanding shares, followed by Pioneer Investments with 0.14%, Jeremy Grantham (Trades, Portfolio) with 0.03% and Jim Simons (Trades, Portfolio) with 0.03%.

Eastman Chemical Co. (EMN, Financial)

The advanced materials and specialty additives company has a market cap of $15.16 billion. GuruFocus gives the company a business predictability rating of 3.5 out of five stars.

The stock has gained 15.3% over the past six months and is trading with a price-earnings ratio of 11.20. The price has been as high as $112.45 and as low as $90.89 over the past 52 weeks. It is currently 5.55% below its 52-week high and 16.86% above its 52-week low. According to the DCF calculator, the stock is undervalued with a 57% margin of safety at $106.21.

With 0.82% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 0.33% and Pioneer Investments with 0.2%.

Edwards Lifesciences Corp. (EW, Financial)

The company, which manufactures tissue hart valves and repair products, has a market cap of $29.32 billion. It has a perfect GuruFocus business predictability rating of 5 out of five stars.

The stock has risen 37.1% over the past six months and is trading with a price-earnings ratio of 51.59. The price has been as high as $143.22 and as low as $92.90 over the past 52 weeks. It is currently 2.75% below its 52-week high and 49.92% above its 52-week low. According to the DCF calculator, the stock is overpriced by 81% at $139.28.

Of the gurus invested in Edward Lifesciences, the largest shareholder is Frank Sands (Trades, Portfolio) with 3.3% of outstanding shares, followed by David Rolfe (Trades, Portfolio) with 0.64%.

F5 Networks Inc. (FFIV, Financial)

The company, which develops application software, has a market cap of $9.17 billion. GuruFocus gives the company a business predictability rating of 3.5 out of five stars.

The stock has gained 13.1% over the past six months and is trading with a price-earnings ratio of 22.89. The price has been as high as $153.91 and as low as $114.63 over the past 52 weeks. It is currently 3.61% below its 52-week high and 29.42% above its 52-week low. According to the DCF calculator, the stock is undervalued with a 20% margin of safety at $148.35.

With 3.55% of outstanding shares, Simons is the company's largest guru shareholder, followed by Joel Greenblatt (Trades, Portfolio) with 0.2%, Ray Dalio (Trades, Portfolio) with 0.08% and Pioneer Investments (Trades, Portfolio) with 0.05%.

Fair Isaac Corp. (FICO, Financial)

The data analytics company has a market cap of $5.14 billion. GuruFocus gives the company a business predictability rating of 4 out of five stars.

The stock has gained 11.6% over the past six months and is trading with a price-earnings ratio of 46.58. The price has been as high as $179.58 and as low as $125.88 over the past 52 weeks. It is currently 4.76% below its 52-week high and 35.87% above its 52-week low. According to the DCF calculator, the stock is overpriced by 216% at $171.03.

Among the gurus invested in the company, the largest shareholder is Chuck Royce (Trades, Portfolio) with 1.5% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.91%.

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

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