6 Undervalued Stocks With High Predictability

WPP, FedEx make the list

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Sep 20, 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.

WPP PLCÂ (WPP)

The company has a four-star business predictability rating and, according to the discounted cash flow calculator, has a 62% margin of safety at $74.55 per share.

The advertising agency has a market cap of $18.93 billion. Over the last five years, its revenue has increased 10.30% and its earnings per share have grown 17%.

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The stock price has fallen 20% over the last 12 months and it is currently trading with a price-earnings ratio of 7.73 and a price-book ratio of 1.61. The price has been as high as $103.53 and as low as $73.05 in the past 52 weeks. It is currently 27.99% below its 52-week high and 2.05% above its 52-week low.

With 0.32% of outstanding shares, Charles Brandes (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 0.15% and Tweedy Browne (Trades, Portfolio) with 0.09%.

Beijing Enterprises Holdings Ltd. (BJINF, Financial)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, has a 64% margin of safety at $4.62 per share.

With a market cap of $6.56 billion, the investment holding company is involved in piped natural gas distribution, natural gas transmission and beer production. Over the last five years, its revenue and earnings per share have grown by 8.90% and 13.80%.

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The stock price has declined 11% over the last 12 months and it is currently trading with a price-earnings ratio of 7.48 and a price-book ratio of 0.76.

Dollar Tree Inc. (DLTR)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, has a 56% margin of safety at $85.21 per share.

The company, which operates discount retail stores, has a market cap of $20.27 billion. Over the last five years, its revenue has increased 27.70% and its earnings per share have grown 15.70%.

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The stock price has risen 2% over the last 12 months and it is currently trading with a price-earnings ratio of 11.83. The price has been as high as $116.65 and as low as $79.17 in the last 52 weeks. It is currently 26.95% below its 52-week high and 7.63% above its 52-week low.

With 3.04% of outstanding shares, Steve Mandel (Trades, Portfolio) is the company's largest guru shareholder, followed by Chuck Akre (Trades, Portfolio) with 2.12%, Lee Ainslie (Trades, Portfolio) with 1.79% and Simons with 0.25%.

Union Pacific Corp. (UNP)

The company has a three-star business predictability rating and, according to the DCF calculator, has a 55% margin of safety at $163.7 per share.

The company, which operates in the rail transport industry, has a market cap of $121.06 billion. Over the last five years, its revenue has grown 2.70% and its earnings per share have grown 18.80%.

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The stock price has climbed 42% over the last 12 months and it is currently trading with a price-earnings ratio of 11.48 and a price-book ratio of 6.08. The price has been as high as $164.58 and as low as $108.71 in the last 52 weeks. It is currently 0.53% below its 52-week high and 50.58% above its 52-week low.

The company's largest guru shareholder is Dodge & Cox with 1.37% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.85%, PRIMECAP Management (Trades, Portfolio) with 0.35% and Pioneer Investments (Trades, Portfolio) with 0.34%.

Unipres Corp. (UPRZF, Financial)

The company has a three-star business predictability rating and, according to the DCF calculator, has a 54% margin of safety at $18.6 per share.

The company, which manufactures press-formed automotive parts in the design process of vehicles, has a market cap of $940 million. Over the last five years, its revenue has grown 6% and its earnings per share have increased 11.30%.

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The stock price has fallen 20% over the last 12 months and it is currently trading with a price-earnings ratio of 6.99 and a price-book ratio of 0.70.

FedEx Corp. (FDX)

The company has a three-star business predictability rating and, according to the DCF calculator, has a 52% margin of safety at $241.58 per share.

The world's largest express courier delivery company has a market cap of $63.66 billion. Over the last five years, its revenue has grown 12.30% and its earnings per share have climbed 15.80%.

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The stock price has risen 10% over the last 12 months and it is currently trading with a price-earnings ratio of 13.66 and a price-book ratio of 3.39. The price has been as high as $274.66 and as low as $214.17 in the last 52 weeks. It is currently 12.04% below its 52-week high and 12.80% above its 52-week low.

With 5.75% of outstanding shares, PRIMECAP Management is the company's largest guru shareholder, followed by Dodge & Cox with 3.09%, Bill Gates (Trades, Portfolio) with 1.14% and Mason Hawkins (Trades, Portfolio) with 1.01%.

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