Cheap and Predictable Stocks: Dollar Tree, Viacom

Margin of safety and a high business predictability rating

Author's Avatar
Jul 29, 2018
Article's Main Image

According to the GuruFocus All-in-One Screener, the following stocks have high business predictability ratings and a wide margin of safety.

WPP PLC ADR (WPP)

The company has a four-star business predictability rating and, according to the discounted cash flow calculator, has a 58% margin of safety at $77.32 per share.

2044474450.png

It is an advertising agency in the U.K. It has a market cap of $19.62 billion. Over the past five years, its revenue has increased 9.70% and its earnings per shares have grown 17%.

and is trading with a price-earnings ratio of 8.28 and a price-book ratio of 1.59. The stock price has fallen 24% over the past 12 months and has been as high as $103.53 and as low as $73.66 in the past 52 weeks. It is currently 25.32% below its 52-week high and 4.97% above its 52-week low.

With 0.26% of outstanding shares, Charles Brandes (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio) with 0.17% and Tweedy Browne (Trades, Portfolio) with 0.09%.

Rush Enterprises Inc. Class B (RUSHB)

The company has a four-star business predictability rating, and according to the discounted cash flow calculator, has a 57% margin of safety at $44.25 per share.

With a market cap of $1.71 billion, the company sells buses and trucks of various brands. Over the past five years, its revenue and earnings pers shares have grown by 7.90% and 12.50%.

1577025300.png

The stock price has increased 15% over the past 12 months and is trading with a price-earnings ratio of 9.66 and a price-book ratio of 1.67. The price has been as high as $52.75 and as low as $37.75 in the past 52 weeks. It is currently 16.13% below its 52-week high and 23.78% above its 52-week low.

Mario Gabelli (Trades, Portfolio) with 1.55% of outstanding shares is the largest investor among the gurus followed by Simons with 0.65% and Ronald Muhlenkamp (Trades, Portfolio) with 0.01%.

Express Scripts Holding Co. (ESRX)

The company has a three-star business predictability rating, and according to the discounted cash flow calculator, has a 57% margin of safety at $79.48 per share.

The company provides healthcare management and administration services. It has a market cap of $386.84 million. Over the past five years, its revenue has increased 6.90% and its earnings per share have grown 33.60%.

2010172330.png

The stock price has risen 28% over the past 12 months and is trading with a price-earnings ratio of 9.99 and a price-book ratio of 2.43. The price has been as high as $85.07 and as low as $55.80 in the past 52 weeks. It is currently 6.57% below its 52-week high and 42.44% above its 52-week low.

With 6.23% of outstanding shares, Dodge & Cox is the company's largest guru shareholder followed by Barrow, Hanley, Mewhinney & Strauss with 2.56%.

Viacom Inc. Class A (VIA)

The company has a three-star business predictability rating, and according to the discounted cash flow calculator, has a 56% margin of safety at $33.15 per share.

It creates television programs, motion pictures and games. It has a market cap of $11.75 billion. Over the past five years, its revenue has increased 4.80%.

442456544.png

The stock price has fallen 19% over the past 12 months and is trading with a price-earnings ratio of 6.18 and a price-book ratio of 1.97. The price has been as high as $42.55 and as low as $28.20 in the past 52 weeks. It is currently 22.09% below its 52-week high and 17.55% above its 52-week low.

Gabelli with 0.48% of outstanding shares is the largest investor among the gurus.

Kansas City Southern (KSU)

The company has a five-star business predictability rating, and according to the discounted cash flow calculator, has a 56% margin of safety at $116.19 per share.

With a market cap of $11.87 billion, it develops roadways and railways. Over the past five years, its revenue has increased 2.70% and its earnings per shares have climbed by 18.30%.

425831704.png

The stock price has risen 14% over the past 12 months and is trading with a price-earnings ratio of 12.42 and a price-book ratio of 2.53. The price has been as high as $116.92 and as low as $99.47 in the past 52 weeks. It is currently 0.62% below its 52-week high and 16.81% above its 52-week low.

With 1.95% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.55% and Simons with 0.47%.

Dollar Tree Inc. (DLTR)

The company has a 4.5-stars business predictability rating, and according to the discounted cash flow calculator, has a 53% margin of safety at $89.22 per share.

The discount retailer in the U.S. has a market cap of $21.21 billion. Over the past five years, its revenue has grown 27.70% and its earnings per shares have increased 15.70%.

587228120.png

The stock price has climbed 24% over the past 12 months and is trading with a price-earnings ratio of 12.71 and a price-book ratio of 2.89. The price has been as high as $116.65 and as low as $70.37 in the past 52 weeks. It is currently 23.51% below its 52-week high and 26.79% above its 52-week low.

Steve Mandel (Trades, Portfolio) with 2.67% of outstanding shares is the largest investor among the gurus followed by Chuck Akre (Trades, Portfolio) with 2.03% and Steven Cohen (Trades, Portfolio) with 0.22%.

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