5 Cheap and Predictable Stocks

Companies have wide margins of safety and high business predictability ratings

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Aug 09, 2018
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According to the GuruFocus All-in-One Screener, the following stocks have high business predictability ratings and a wide margin of safety.

Reinsurance Group of America Inc. (RGA, Financial)

The company has a 4.5-star business predictability rating and, according to the discounted cash flow calculator, has a 74% margin of safety at $143 per share.

The insurance holding company has a market cap of $9.1 billion. Over the last five years, its revenue has increased 7.3% and its earnings per share have grown 23.9%.

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The stock price has increased 3% over the last 12 months and is currently trading with a price-earnings ratio of 5.36 and a price-book ratio of 1.06. The price has been as high as $165.12 and as low as $126.62 in the past 52 weeks. It is currently 13.34% below its 52-week high and 13.01% above its 52-week low.

With 0.69% of outstanding shares,Ă‚ Diamond Hill Capital (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies and Chuck Royce (Trades, Portfolio) with 0.26%.

The Kroger Co. (KR, Financial)

The company has a five-star business predictability rating and, according to the DCF calculator, has a 74% margin of safety at $30.50 per share.

With a market cap of $24.31 billion, the company operates grocery stores. Over the last five years, its revenue and earnings per share have grown by 8.3% and 9.8%.

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The stock price has increased 27% over the last 12 months and is currently trading with a price-earnings ratio of 7.4 and a price-book ratio of 3.55. The price has been as high as $31.45 and as low as $19.69 in the last 52 weeks. It is currently 2.8% below its 52-week high and 55.26% above its 52-week low.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.27% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.23%.

Sally Beauty Holdings Inc. (SBH, Financial)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, has a 71% margin of safety at $14.45 per share.

The professional beauty products retailer has a market cap of $1.74 billion. Over the last five years, its revenue has increased 8.7% and its earnings per share have grown 3.4%.

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The stock price has fallen 30% over the last 12 months and is currently trading with a price-earnings ratio of 7.6. The price has been as high as $20.92 and as low as $13.72 in the last 52 weeks. It is currently 30.9% below its 52-week high and 5.36% above its 52-week low.

With 0.75% of outstanding shares, Mario Gabelli (Trades, Portfolio) is the company's largest guru shareholder, followed by Royce with 0.48% and Greenblatt with 0.43%

Amerco Inc. (UHAL, Financial)

The company has a five-star business predictability rating and, according to the DCF calculator, has a 67% margin of safety at $380 per share.

The company, which rents and leases trucks, trailers and towing devices, has a market cap of $7.45 billion. Over the last five years, its revenue has grown 6.80% and its earnings per share have grown 19.40%.

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The stock price has declined 3% over the last 12 months and is currently trading with a price-earnings ratio of 9.41 and a price-book ratio of 2.18. The price has been as high as $400.99 and as low as $317.42 in the last 52 weeks. It is currently 5.57% below its 52-week high and 19.29% above its 52-week low.

David Abrams (Trades, Portfolio) is the company's largest guru shareholder with 2.51% of outstanding shares.

Allegiant Travel Co. (ALGT, Financial)

The company has a five-star business predictability rating and, according to the DCF calculator, has a 65% margin of safety at $128.95 per share.

The travel services company has a market cap of $2.09 billion. Over the last five years, its revenue has grown 15.20% and its earnings per share have climbed by 30.8%.

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The stock price has increased 3% over the last 12 months and is currently trading with a price-earnings ratio of 9.94 and a price-book ratio of 3.24. The price has been as high as $181.45 and as low as $111.54 in the last 52 weeks. It is currently 28.8% below its 52-week high and 15.83% above its 52-week low.

With 3.38% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Diamond Hill Capital with 2.59% and First Pacific Advisors (Trades, Portfolio) with 2.18%.

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