6 Stocks Beating the Market

Morningstar, Merck on the list

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Oct 31, 2018
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According to the GuruFocus All-in-One Screener, the following stocks have outperformed the Standard & Poor's 500 index over the past 12 months and were bought by gurus during the last quarter.

MarketAxess Holdings Inc. (MKTX, Financial) has a market cap of $7.95 billion. It has outperformed the S&P 500 index by 21.3% over the past 12 months.

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Shares are trading with a price-earnings ratio of 51.34. According to the DCF calculator, the stock is overpriced by 82% at $211 per share. It is currently 26.66% above its 52-week low and 5.47% below its 52-week high.

The electronic fixed-income trading platform has a profitability and growth rating of 9 out of 10. The return on equity of 29.73% and return on assets of 26.78% are outperforming 90% of companies in the Global Capital Markets industry. Its financial strength is rated 10 out of 10 with no debt.

The company’s largest shareholder among the gurus is the PRIMECAP Management (Trades, Portfolio) with 2.22% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.82%, Ron Baron (Trades, Portfolio) with 0.73% and Columbia Wanger (Trades, Portfolio) with 0.44%.

With a market cap of $7.77 billion, Molina Healthcare Inc. (MOH, Financial) has outperformed the S&P 500 index by 83.5% over the past 12 months.

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The stock price is currently 89.50% above its 52-week low and 18.34% below its 52- week high.

The health care company has a profitability and growth rating of 7 out of 10. The return on equity of -3.33% and return on assets of -0.57% are underperforming 92% of companies in the Global Health Care Plans industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 3.32 is above the industry median of 1.15.

Simons is the company's largest guru shareholder with 4.54% of outstanding shares, followed by Andreas Halvorsen (Trades, Portfolio) with 2.71% and Jana Partners (Trades, Portfolio) with 1.44%.

Morningstar Inc. (MORN, Financial) has a market cap of $5.21 billion. It has outperformed the S&P 500 index by 40.1% over the past 12 months.

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Shares are trading with a price-earnings ratio of 33.55. According to the DCF calculator, the stock is overpriced by 157% at $126 per share. It is currently 43.96% above its 52-week low and 15.39% below its 52-week high.

The company, which provides independent investment research services, has a profitability and growth rating of 9 out of 10. The return on equity of 21.16% and return on assets of 12.65% are outperforming 79% of companies in the Global Business Services industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 4.07 is above the industry median of 0.97.

The company’s largest guru shareholder is Baron with 3.42% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 1.41%, Ken Fisher (Trades, Portfolio) with 0.07% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

With a market cap of $12 billion, The Mosaic Co. (MOS, Financial) has outperformed the S&P 500 index by 41.3% over the past 12 months.

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Shares are trading with a price-book ratio of 1.15. The stock is currently 38.74% above its 52-week low and 10.50% below its 52-week high.

The company, which produces potach and phosphate fertilizer, has a profitability and growth rating of 5 out of 10. The return on equity of -0.93% and return on assets of -0.49% are underperforming 78% of companies in the Global Agricultural Inputs industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.21 is below the industry median of 0.62.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.65% of outstanding shares, followed by Alan Fournier (Trades, Portfolio) with 0.1%, John Rogers (Trades, Portfolio) with 0.07% and Caxton Associates (Trades, Portfolio) with 0.05%.

Marathon Petroleum Corp. (MPC, Financial) has a market cap of $47.53 billion. It has outperformed the S&P 500 index by 14.3% over the past 12 months.

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Shares are trading with a price-earnings ratio of 8.51. According to the DCF calculator, the stock is undervalued with a 21% of margin of safety at $71 per share. The price is currently 16.95% above its 52-week low and 22.22% below its 52-week high.

The company, which operates in the oil and gas sector, has a profitability and growth rating of 6 out of 10. The return on equity of 28.82% and return on assets of 8.38% are outperforming 62% of companies in the Global Oil and Gas Refining and Marketing industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.29 is below the industry median of 0.61.

The company’s largest guru shareholder is Steven Cohen (Trades, Portfolio) with 0.51% of outstanding shares, followed by Daniel Loeb (Trades, Portfolio) with 0.45% and the First Eagle Investment (Trades, Portfolio) with 0.15%.

With a market cap of $193.8 billion, Merck & Co. Inc. (MRK, Financial) has outperformed the S&P 500 Index by 31.5% over the past 12 months.

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Shares are trading with a price-earnings ratio of 145.74. According to the DCF calculator, the stock is overpriced by 1,262% at $72.87 per share. The price is currently 37.93% above its 52-week low and 0.84% below its 52-week high.

The pharmaceutical company has a profitability and growth rating of 6 out of 10. The return on equity of 9.39% and return on assets of 3.77% are underperforming 57% of companies in the Global Drug Manufacturers - Major industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.38 is below the industry median of 0.64.

With 0.87% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Fisher with 0.3%, Pioneer Investments with 0.25% and Barrow, Hanley, Mewhinney & Strauss with 0.24%.

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

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