6 Stocks Outperforming the Market

Amazon tops the list

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Dec 20, 2018
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According to the GuruFocus All-in-One Guru 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.

Amazon.com Inc. (AMZN, Financial) has a market cap of $709 billion. It has outperformed the S&P 500 index by 34.8% over the past 12 months.

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The stock is trading with a price-earnings ratio of 81.26. According to the DCF calculator, the stock is overpriced by 710% at $1,450 per share. As of Thursday, the share price is 33.68% above its 52-week low and 24.34% below its 52-week high.

The e-commerce company has a profitability and growth rating of 9 out of 10. The return on equity of 28.18% and return on assets of 6.84% are outperforming 65% of companies in the Global Specialty Retail industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.21 is above the industry median of 0.99.

The company’s largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 0.32% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 0.3% and Chase Coleman (Trades, Portfolio) with 0.24%.

With a market cap of $7.84 billion, ANGI Homeservices Inc. (ANGI, Financial) has outperformed the S&P 500 index by 50.1% over the past 12 months.

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The stock is trading with a forward price-earnings ratio of 113.11. The share price is currently 1.95% above its 52-week low and 34.27% below its 52- week high.

The company, which creates a digital marketplace that connects homeowners, has a profitability and growth rating of 3 out of 10. The return on equity of -1.68% and return on assets of -1.18% are underperforming 85% of companies in the Global Internet Content and Information industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.19 is below the industry median of 7.46.

Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder with 0.03% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.03% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Anthem Inc. (ANTM, Financial) has a market cap of $67.08 billion. It has outperformed the S&P 500 index by 20.1% over the past 12 months.

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The stock is trading with a price-earnings ratio of 15.04. According to the DCF calculator, the stock is overpriced by 20% at $259.36 per share. The share price is currently 20.34% above its 52-week low and 13.71% below its 52-week high.

The health benefits company has a profitability and growth rating of 5 out of 10. While the return on equity of 16.60% is underperforming the sector, the return on assets of 6.31% is outperforming 57% of companies in the Global Health Care Plans industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.22 is below the industry median of 1.15.

The company’s largest guru shareholder is Andreas Halvorsen (Trades, Portfolio) with 1.85% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 1.14%, Barrow, Hanley, Mewhinney & Strauss with 0.9% and the Vanguard Health Care Fund (Trades, Portfolio) with 0.76%.

With a market cap of $36.2 billion, Aon PLC (AON, Financial) has outperformed the S&P 500 index by 15.2% over the past 12 months.

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The stock is trading with a price-earnings ratio of 48.18. According to the DCF calculator, the stock is overpriced by 325% at $150.31 per share. The share price is currently 14.85% above its 52-week low and 9.75% below its 52-week high.

The company, which offers risk management services and insurance and reinsurance brokerage, has a profitability and growth rating of 7 out of 10. The return on equity of 16.13% and return on assets of 2.90% are underperforming 59% of companies in the Global Insurance Brokers industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.10 is below the industry median of 5.11.

First Pacific Advisors (Trades, Portfolio) is the company's largest guru shareholder with 1.28% of outstanding shares, followed by the Steven Romick (Trades, Portfolio) with 1.01% and  Bill Nygren (Trades, Portfolio) with 0.78%.

Ares Capital Corp. (ARCC, Financial) has a market cap of $6.53 billion. It has outperformed the S&P 500 index by 11.2% over the past 12 months.

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The stock is trading with a price-earnings ratio of 6.93. According to the DCF calculator, the stock is undervalued with a 35% margin of safety at $15.32 per share. The share price is currently 1.93% above its 52-week low and 13.10% below its 52-week high.

The specialty finance company has a profitability and growth rating of 7 out of 10. The return on equity of 13.05% and return on assets of 7.60% are outperforming 69% of companies in the Global Asset Management industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.18 is below the industry median of 85.28.

The company’s largest guru shareholder is NWQ Managers (Trades, Portfolio) with 0.13% of outstanding shares, followed by Scott Black (Trades, Portfolio) with 0.03% and Murray Stahl (Trades, Portfolio) with 0.01%.

With a market cap of $5.26 billion, ARRIS International PLC (ARRS, Financial) has outperformed the S&P 500 Index by 21.9% over the past 12 months.

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The stock is trading with a price-earnings ratio of 67.19. According to the DCF calculator, the stock is overpriced by 527% at $30.23 per share. The share price is currently 40.28% above its 52-week low and 2.66% below its 52-week high.

The company, which provides media entertainment and data communications solutions, has a profitability and growth rating of 8 out of 10. The return on equity of 2.63% and return on assets of 1.10% are underperforming 58% of companies in the Global Communication Equipment industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.24 is below the industry median of 2.00.

With 9.62% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by NWQ Managers with 1.17%, Steven Cohen (Trades, Portfolio) with 0.92% and First Pacific Advisors with 0.9%.

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

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