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Tiziano Frateschi
Tiziano Frateschi
Articles (1855)  | Author's Website |

6 Undervalued Stocks With Predictable Business

Alliance Data Systems tops the list

December 30, 2018 | About:

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

Alliance Data Systems Corp. (ADS)

The company has a business predictability rating of five out of five stars and, according to the discounted cash flow calculator, a 61% margin of safety at $150 per share.

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The company, which provides marketing and credit solutions, has a market cap of $8.27 million. Over the last five years, its revenue has grown 20.50% and earnings per share have grown 11.80%.

The stock has fallen 40% over the last 12 months and is currently trading with a price-earnings ratio of 8.86 and a price-book ratio of 3.64. The price has been as high as $278.33 and as low as $142.58 in the last 52 weeks. As of Friday, it was 45.43% below its 52-week high and 6.53% above its 52-week low.

The company's largest guru shareholder is Jeff Ubben (Trades, Portfolio)’s ValueAct Holdings LP with 11.17% of outstanding shares, followed by Glenn Greenberg (Trades, Portfolio)’s Brave Warrior Advisors LLC with 3.18%, Jerome Dodson (Trades, Portfolio)’s Parnassus Fund with 0.45% and Ray Dalio (Trades, Portfolio)’s Bridgewater Associates with 0.18%.

Genesee & Wyoming Inc. Class A (GWR)

The company has a three star business predictability rating and, according to the DCF calculator, a 60% margin of safety at $73.8 per share.

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The company, which owns and leases freight railroads, has a market cap of $4.34 billion. Over the last five years, its revenue has grown 13.70% and its earnings per share have grown 27.70%.

The stock has fallen 7% over the last 12 months and is currently trading with a price-earnings ratio of 7.42 and a price-book ratio of 1.26. The price has been as high as $92.91 and as low as $67.61 in the last 52 weeks. As of Friday, it was 20.82% below its 52-week high and 8.82% above its 52-week low.

With 0.03% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder.

Ever-Glory International Group Inc. (EVK)

The company has a four-star business predictability rating and, according to the DCF calculator, a 60% margin of safety at $4 per share.

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The retailor of branded fashion apparel has a $59 million market cap. Over the last five years, its revenue has grown 6.10% and its earnings per share have fallen 4.90%.

The stock has climbed 70% over the last 12 months; it is currently trading with a price-earnings ratio of 4.76 and a price-book ratio of 0.60. The price has been as high as $4.50 and as low as $2.20 in the last 52 weeks. It is currently 11.11% below its 52-week high and 81.82% above its 52-week low.

Sally Beauty Holdings Inc. (SBH)

The company has a four-star business predictability rating and, according to the DCF calculator, a 59% margin of safety at $17 per share.

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The company, which retails professional beauty products, has a $2.03 billion market cap. Over the last five years, its revenue has grown 8.70% and its earnings per share have raised 5.30%.

The stock has fallen 10% over the last 12 months; it is currently trading with a price-earnings ratio of 8.12. The price has been as high as $23.61 and as low as $13.72 in the last 52 weeks. It is currently 28.50% below its 52-week high and 23.03% above its 52-week low.

With 0.73% of outstanding shares, Lee Ainslie (Trades, Portfolio)’s Maverick Capital Ltd. is the company's largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 0.73%, Royce with 0.35%, Jeff Auxier (Trades, Portfolio) with 0.1% and Coatue Management LLC with 0.01%.

Multi-Color Corp. (LABL)

The company has a four-star business predictability rating and, according to the DCF calculator, a 58% margin of safety at $34 per share.

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The label solutions provider has a market cap of $700 million. Over the last five years, its revenue has grown 10.70% and its earnings per share have increased 18.50%.

The stock has fallen 55% over the last 12 months; it is currently trading with a price-earnings ratio of 7.97 and a price-book ratio of 0.94. The price has been as high as $89.70 and as low as $29.95 in the last 52 weeks. It is currently 61.53% below its 52-week high and 15.21% above its 52-week low.

The company's largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.13% of outstanding shares.

Credit Acceptance Corp. (CACC)

The company has a 4.5-star business predictability rating and, according to the DCF calculator, a 57% margin of safety at $378 per share.

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The consumer finance company has a market cap of $7.2 billion. Over the last five years, its revenue has grown 19.00% and its earnings per share have climbed 20.90%.

The stock has risen 15% over the last 12 months; it is currently trading with a price-earnings ratio of 12.15 and a price-book ratio of 3.67. The price has been as high as $467.26 and as low as $297.63 in the last 52 weeks. It is currently 20.16% below its 52-week high and 25.34% above its 52-week low.

With 5.63% of outstanding shares, Ruane Cunniff (Trades, Portfolio) is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.24%, Ainslie’s firm with 0.07% and David Dreman (Trades, Portfolio) with 0.01%.

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

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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