6 Stocks Beating the Market

Several pharmaceutical companies make the list

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Jan 17, 2019
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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 third quarter.

BeiGene Ltd. (BGNE, Financial) has a market cap of $8.29 billion. It has outperformed the S&P 500 Index by 39.9% over the past 12 months.

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The stock is trading with a price-book ratio of 4.17. The share price is 50.86% above its 52-week low and 34.65% below its 52-week high.

The biopharmaceutical company has a profitability and growth rating of 3 out of 10. The return on equity of -42.44% and return on assets of -32.09% are outperforming 58% of the companies in the Global Biotechnology industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 10.38 is below the industry median of 64.02.

The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 1.47% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 0.51%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.24% and Frank Sands (Trades, Portfolio) with 0.16%.

With a market cap of $120.37 billion, BHP Group Ltd. (BHP) has outperformed the S&P 500 by 8.4% over the past 12 months.

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The stock is trading with a price-earnings ratio of 35.93. According to the DCF calculator, the stock is overpriced by 78% at $47.53 per share. The share price is currently 10.28% above its 52-week low and 9.67% below its 52- week high.

The company, which produces iron ore and coal, has a profitability and growth rating of 6 out of 10. The return on equity of 6.54% and return of assets of 3.25% are outperforming 80% of companies in the Global Industrial Metals and Minerals industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.59 is below the industry median of 69.61.

Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder with 0.24% of outstanding shares, followed by Simons’ firm with 0.01%.

Biogen Inc. (BIIB, Financial) has a market cap of $68.01 billion. It has outperformed the S&P 500 by 5% over the past 12 months.

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The stock is trading with a price-earnings ratio of 21.79. According to the DCF calculator, the stock is undervalued with a 23% of margin of safety at $330 per share. The share price is currently 35.47% above its 52-week low and 13.16% below its 52-week high.

The company, which develops therapies to treat neurological diseases, has a profitability and growth rating of 10 out of 10. The return on equity of 24.30% and return of assets of 13.03% are outperforming 93% of companies in the Global Biotechnology industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.75 is above the industry median of 64.02.

The company’s largest guru shareholder is PRIMECAP Management with 7.38% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.83% and Pioneer Investments (Trades, Portfolio) with 0.13%.

With a market cap of $7.13 billion, Class B shares of Bio-Rad Laboratories Inc. (BIO) have outperformed the S&P 500 by 6.6% over the past 12 months.

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The stock is trading with a price-earnings ratio of 5.63. According to the DCF calculator, the stock is undervalued with a 62% of margin of safety at $238 per share. The share price is currently 7.73% above its 52-week low and 26.60% below its 52-week high.

The company, which provides systems used to separate and analyze chemical and biological materials, has a profitability and growth rating of 5 out of 10. The return on equity of 32.10% and return on assets of 22.89% are outperforming 61% of companies in the Global Diagnostics and Research industry. Its financial strength is rated 8 out of 10. The cash-debt ratio of 1.95 is below the industry median of 3.52.

Biomarin Pharmaceutical Inc. (BMRN, Financial) has a market cap of $16.9 billion. It has outperformed the S&P 500 by 9.9% over the past 12 months.

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The stock is trading with a price-book ratio of 5.80. The share price is currently 25.22% above its 52-week low and 11.06% below its 52-week high.

The company, which develops pharmaceutical products for serious diseases and medical conditions, has a profitability and growth rating of 4 out of 10. The return on equity of -4.39% and return on assets of -2.70% are outperforming 74% of companies in the Global Biotechnology industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 1.20 is below the industry median of 64.02.

The company’s largest guru shareholder is PRIMECAP Management with 7.98% of outstanding shares, followed by Sands with 3.62%, Andreas Halvorsen (Trades, Portfolio) with 2.32% and Spiros Segalas (Trades, Portfolio) with 1.92%.

With a market cap of $11.68 billion, Broadridge Financial Solutions Inc. (BR, Financial) has outperformed the S&P 500 Index by 13.7% over the past 12 months.

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The stock is trading with a price-earnings ratio of 26.47. According to the DCF calculator, the stock is overpriced by 79% at $100 per share. The share price is currently 14.32% above its 52-week low and 27.63% below its 52-week high.

The company, which supplies communication and technology-driven solutions, has a profitability and growth rating of 8 out of 10. The return on equity of 40.58% and return on assets of 13.66% are outperforming 88% of companies in the Global Business Services industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.18 is below the industry median of 0.97.

With 0.45% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 0.27% and Joel Greenblatt (Trades, Portfolio) with 0.11%.

Disclosure: I do not own any stocks mentioned.

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