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Tiziano Frateschi
Tiziano Frateschi
Articles (2644)  | Author's Website |

6 Predictable Stocks With Wide Margins of Safety

Torchmark tops the list

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

Torchmark Corp. (TMK)

The company has a business predictability rating of four out of five stars and, according to the discounted cash flow calculator, a 69% margin of safety at $76 per share.

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The company, which provides life and health insurance, has a market cap of $8.46 million. Over the last five years, its revenue has grown 7.80% and earnings per share have grown 21.20%.

The stock has fallen 16% over the last 12 months and is currently trading with a price-earnings ratio of 5.72 and a price-book ratio of 1.54. The price has been as high as $93.60 and as low as $75.62 in the last 52 weeks. As of Tuesday, it was 18.92% below its 52-week high and 0.36% above its 52-week low.

The company's largest guru shareholder is Warren Buffett (Trades, Portfolio) with 5.7% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.25%, Ken Fisher (Trades, Portfolio) with 0.15% and Tweedy Browne (Trades, Portfolio) with 0.1%.

Thor Industries Inc. (NYSE:THO)

The company has a 3.5-star business predictability rating and, according to the DCF calculator, a 68% margin of safety at $54 per share.

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The company, which manufactures recreational vehicles, has a market cap of $2.84 billion. Over the last five years, its revenue has grown 22.40% and its earnings per share have grown 24.90%.

The stock has fallen 56% over the last 12 months and is currently trading with a price-earnings ratio of 9 and a price-book ratio of 1.47. The price has been as high as $161.48 and as low as $53.45 in the last 52 weeks. As of Tuesday, it was 66.75% below its 52-week high and 0.45% above its 52-week low.

With 0.97% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.44%, Steven Cohen (Trades, Portfolio) with 0.26% and Joel Greenblatt (Trades, Portfolio) with 0.12%.

United Natural Foods Inc. (NYSE:UNFI)

The company has a five-star business predictability rating and, according to the DCF calculator, a 67% margin of safety at $10.84 per share.

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The wholesale distributor of natural, organic and specialty foods and nonfood products has a $550.83 million market cap. Over the last five years, its revenue has grown 10.20% and its earnings per share have grown 5.80%.

The stock has fallen 79% over the last 12 months; it is currently trading with a price-earnings ratio of 4.76 and a price-book ratio of 0.30. The price has been as high as $52.55 and as low as $10.38 in the last 52 weeks. It is currently 79.37% below its 52-week high and 4.43% above its 52-week low.

The company's largest guru shareholder is Royce with 1.36% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.78% and Fisher with 0.77%.

Kansas City Southern (NYSE:KSU)

The company has a five-star business predictability rating and, according to the DCF calculator, a 66% margin of safety at $97 per share.

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The company, which develops roadways and railways, has a $9.75 billion market cap. Over the last five years, its revenue has grown 2.70% and its earnings per share have climbed 18.30%.

The stock has fallen 14% over the last 12 months; it is currently trading with a price-earnings ratio of 9.75 and price-book ratio of 2.05. The price has been as high as $120.34 and as low as $94.63 in the last 52 weeks. It is currently 20.35% below its 52-week high and 1.29% above its 52-week low.

With 1.87% of outstanding shares, Pioneer Investments is the company's largest guru shareholder, followed by Fisher with 0.29%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.28% and Stanley Druckenmiller (Trades, Portfolio) with 0.04%.

Hawaiian Holdings Inc. (NASDAQ:HA)

The company has a three-star business predictability rating and, according to the DCF calculator, a 65% margin of safety at $28 per share.

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The provider of air transportation for passengers and cargo has a market cap of $1.4 billion. Over the last five years, its revenue has grown 5.50% and its earnings per share have increased 53.60%.

The stock has fallen 30% over the last 12 months; it is currently trading with a price-earnings ratio of 3.81 and a price-book ratio of 1.42. The price has been as high as $44.25 and as low as $27.69 in the last 52 weeks. It is currently 36.79% below its 52-week high and 1.01% above its 52-week low.

The company's largest guru shareholder is Royce with 2.03% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.8%, Third Avenue Management (Trades, Portfolio) with 1.16% and the Third Avenue Value Fund (Trades, Portfolio) with 0.93%.

FedEx Corp. (NYSE:FDX)

The company has a three-star business predictability rating and, according to the DCF calculator, a 64% margin of safety at $170 per share.

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The world's largest express courier delivery company has a market cap of $44 billion. Over the last five years, its revenue has grown 13.80% and its earnings per share have climbed 15.80%.

The stock has risen 25% over the last 12 months; it is currently trading with a price-earnings ratio of 10.30 and a price-book ratio of 2.50. The price has been as high as $274.66 and as low as $181.28 in the last 52 weeks. It is currently 33.67% below its 52-week high and 0.50% above its 52-week low.

With 5.73% of outstanding shares, PRIMECAP Management is the company's largest guru shareholder, followed by Dodge & Cox with 4.7% and Bill Gates (Trades, Portfolio)' foundation with 1.15%.

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

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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