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Tiziano Frateschi
Tiziano Frateschi
Articles (1890)  | Author's Website |

6 Predictable Stocks With Margin of Safety

The Interpublic Group of Companies makes the list

January 07, 2019 | About:

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

Grupo Aeroportuario del Centro Norte SAB de CV (OMAB)

The company has a business predictability rating of three out of five stars and, according to the discounted cash flow calculator, a 49% margin of safety at $42 per share.

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The company, which maintains and develops 13 airports in Mexico, has a market cap of $2.22 million. Over the last five years, its revenue has grown 18.20% and earnings per share have grown 20.10%.

The stock has fallen 6% over the last 12 months and is currently trading with a price-earnings ratio of 14.84 and a price-book ratio of 5.82. The price has been as high as $58.10 and as low as $33.39 in the last 52 weeks. As of Monday, it was 29.88% below its 52-week high and 22.10% above its 52-week low.

The company's largest guru shareholder is Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.96% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.06%.

Hub Group Inc. Class A (HUBG)

The company has a 3.5 out of 5-star business predictability rating and, according to the DCF calculator, a 48% margin of safety at $37.07 per share.

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The asset-light freight transportation management company has a market cap of $1.27 billion. Over the last five years, its revenue has grown 6.70%, and its earnings per share have grown 14.70%.

The stock has fallen 26% over the last 12 months and is currently trading with a price-earnings ratio of 4.92 and a price-book ratio of 1.37. The price has been as high as $56.60 and as low as $34.02 in the last 52 weeks. As of Monday, it was 34.51% below its 52-week high and 8.97% above its 52-week low.

With 8.63% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder followed by Ken Fisher (Trades, Portfolio) with 4.15% and Mairs and Power (Trades, Portfolio) with 0.6%.

The Interpublic Group of Companies Inc. (IPG)

The company has a three-star business predictability rating and, according to the DCF calculator, a 45% margin of safety at $21.14 per share.

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The marketing and advertising service company has a $7.97 billion market cap. Over the last five years, its revenue has grown 6.10% and its earnings per share have grown 14.90%.

The stock has risen 2% over the last 12 months; it is currently trading with a price-earnings ratio of 14.40 and a price-book ratio of 3.76. The price has been as high as $26.01 and as low as $19.61 in the last 52 weeks. It is currently 20.30% below its 52-week high and 5.71% above its 52-week low.

With 4.34% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by John Rogers (Trades, Portfolio) with 1.92%, Pioneer Investments (Trades, Portfolio) with 1.08% and Hotchkis & Wiley with 0.76%.

MTY Food Group Inc. (MTYFF)

The company has a five-star business predictability rating and, according to the DCF calculator, a 49% margin of safety at $46.14 per share.

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The Canadian franchisor has a $1.15 billion market cap. Over the last five years, its revenue has grown 21.20% and its earnings per share have raised 17.60%.

The stock has raised 7% over the last 12 months; it is currently trading with a price-earnings ratio of 13.30. The price has been as high as $54.40 and as low as $35.33 in the last 52 weeks. It is currently 15.20% below its 52-week high and 30.58% above its 52-week low.

Universal Health Services Inc Class B. (UHS)

The company has a four-star business predictability rating and, according to the DCF calculator, a 46% margin of safety at $118.56 per share.

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The company, which operates acute care hospital services and behavioral health services, has a market cap of $10.97 billion. Over the last five years, its revenue has grown 9.10% and its earnings per share have increased 11.90%.

The stock has increased 8% over the last 12 months; it is currently trading with a price-earnings ratio of 13.32 and a price-book ratio of 2.06 The price has been as high as $139.63 and as low as $108.62 in the last 52 weeks. It is currently 15.09% below its 52-week high and 9.15% above its 52-week low.

The company's largest guru shareholder is Vanguard Health Care Fund (Trades, Portfolio) with 4.92% of outstanding shares followed by Larry Robbins (Trades, Portfolio) Glenview Capital Management with 3.02%, First Eagle Investment (Trades, Portfolio) with 3.01% and Lee Ainslie (Trades, Portfolio)’s Maverick Capital Ltd. with 2.61%.

L Brands Inc. (LB)

The company has a 3.5-star business predictability rating and, according to the DCF calculator, a 41% margin of safety at $29 per share.

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The company, which retails women's intimate and beauty, has a market cap of $7.62 billion. Over the last five years, its revenue has grown 5.0% and its earnings per share have climbed 7.3%.

The stock has fallen 43% over the last 12 months; it is currently trading with a price-earnings ratio of 10.77. The price has been as high as $53.39 and as low as $23.71 in the last 52 weeks. It is currently 48.10% below its 52-week high and 16.87% above its 52-week low.

With 6.99% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.09% and Ainslie’s firm with 0.26%.

Disclosure: I do not own any stocks mentioned.

Read more here: 

5 Energy Stocks Gurus Are Buying

6 Stocks With Positive Earnings Growth Estimates and Margin of Safety

6 of the Worst-Performing Stocks in Gurus' Portfolios

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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