6 Predictable Stocks With Wide Margins of Safety

Express Scripts, L Brands, Berkshire Hathaway make the list

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Oct 01, 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.

CAI International Inc. (CAI, Financial)

The company has a three-star business predictability rating and, according to the discounted cash flow calculator, has a 53% margin of safety at $22.87 per share.

The logistics company has a market cap of $441.54 million. Over the last five years, its revenue has increased 15.70% but its earnings per share have fallen 17.40%.

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The stock has fallen 26% over the last 12 months and it is currently trading with a price-earnings ratio of 5.03 and a price-book ratio of 0.77. The price has been as high as $40.11 and as low as $19.35 in the past 52 weeks. It is currently 42.98% below its 52-week high and 18.19% above its 52-week low.

With 2.92% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder.

Brembo SpA (BRBOF, Financial)

The company has a three-star business predictability rating and, according to the DCF calculator, a 51% margin of safety at $13.64 per share.

With a market cap of $4.39 billion, the company develops technology for automotive vehicles. Over the last five years, its revenue has grown by 12.50% and its earnings per share have increased 31.10%.

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The stock has fallen 20% over the last 12 months and it is currently trading with a price-earnings ratio of 13.76 and a price-book ratio of 3.35. The price has been as high as $14.24 and as low as $13.39 in the past 52 weeks. It is currently 4.24% below its 52-week high and 1.90% above its 52-week low.

Berkshire Hathaway Inc. (BRK.B, Financial)

The company has a four-star business predictability rating and, according to the DCF calculator, a 49% margin of safety at $214.11 per share.

The insurance conglomerate has a market cap of $527.49 billion. Over the last five years, its revenue has increased 8.10% and its earnings per share have grown 20%.

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The stock has climbed 15% over the last 12 months and it is currently trading with a price-earnings ratio of 11.08. The price has been as high as $223 and as low as $180.44 in the last 52 weeks. It is currently 3.99% below its 52-week high and 18.66% above its 52-week low.

With 2.16% of outstanding shares, Bill Gates (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.13%, Tom Russo (Trades, Portfolio) with 0.1% and Diamond Hill Capital (Trades, Portfolio) with 0.09%.

Express Scripts Holding Co. (ESRX, Financial)

The company has a three-star business predictability rating and, according to the DCF calculator, a 50% margin of safety at $95.01 per share.

The pharmacy benefits manager has a $53.41 billion market cap. Over the last five years, its revenue has grown 6.90% and its earnings per share have grown 33.60%.

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The stock has climbed 49% over the last 12 months and it is currently trading with a price-earnings ratio of 11.69 and a price-book ratio of 2.76. The price has been as high as $96.45 and as low as $55.80 in the last 52 weeks. It is currently 1.49% below its 52-week high and 70.27% above its 52-week low.

The company's largest guru shareholder is Dodge & Cox with 7.38% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.45%, Larry Robbins (Trades, Portfolio) with 1.24% and Richard Pzena (Trades, Portfolio) with 0.55%.

L Brands Inc. (LB, Financial)

The company has a 3.5-star business predictability rating and, according to the DCF calculator, a 50% margin of safety at $30.30 per share.

The company, which owns a variety of retail brands, has a market cap of $8.33 billion. Over the last five years, its revenue has grown 5% and its earnings per share have increased 7.30%.

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The stock has fallen 28% over the last 12 months and it is currently trading with a price-earnings ratio of 9.65. The price has been as high as $63.10 and as low as $25.89 in the last 52 weeks. It is currently 51.98% below its 52-week high and 17.03% above its 52-week low.

With 7.06% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.99%, Barrow, Hanley, Mewhinney & Strauss with 0.92% and Jim Simons (Trades, Portfolio) with 0.58%.

Unipres Corp. (UPRZF, Financial)

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

The company, which manufactures press-formed automotive parts, has a market cap of $932.84 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 has fallen 20% over the last 12 months and it is currently trading with a price-earnings ratio of 7.27 and a price-book ratio of 0.73.

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