5 Stocks With High Business Predictability Ratings

Kroger makes the list

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Apr 01, 2019
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According to the GuruFocus All-in-One Screener, the following companies have high business predictability ratings and a wide margin of safety.

IRSA Propiedades Comerciales SAÂ (IRCP, Financial)

The company has a four out of five-star business predictability rank and, according to the discounted cash flow calculator, a 93% margin of safety at $20.76 share.

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The real estate company has a market cap of $606 million and an enterprise value of $908 million. Over the last five years, its revenue has grown 30.70% and its earnings per share have increased 117.90%.

Shares have fallen 53% over the last 12 months and are currently trading with a price-earnings ratio of 1.16. The price has been as high as $47.05 and as low as $16.82 in the last 52 weeks. As of Monday, the stock was trading 55.90% below its 52-week high and 23.36% above its 52-week low.

The Kroger Co. (KR)

The company has a five-star business predictability rank and, according to the DCF calculator, a 77% margin of safety at $24.6 per share.

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The grocery store chain has a market cap of $19.62 billion. Over the last five years, its revenue has increased 8.80% and its earnings per share have grown 16.50%.

Shares have risen 6% over the last 12 months and are currently trading with a price-earnings ratio of 6.65 and a price-book ratio of 2.50. The price has been as high as $32.74 and as low as $23.15 in the last 52 weeks. As of Monday, the stock was trading 24.86% below its 52-week high and 6.29% above its 52-week low.

With 0.52% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by the Smead Value Fund (Trades, Portfolio) with 0.15%, Lee Ainslie (Trades, Portfolio) with 0.05% and Jeff Auxier (Trades, Portfolio) with 0.05%.

Encore Capital Group Inc. (ECPG, Financial)

The company has a five-star business predictability rank and, according to the DCF calculator, a 66% margin of safety at $27.23 per share.

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The consumer banking company has an $840.98 million market cap. Over the last five years, its revenue has grown 8.50% and its earnings per share have increased 4.10%.

Shares have tumbled 39% over the last 12 months; they are currently trading with a price-earnings ratio of 6.77 and a price-book ratio of 1.04. The price has been as high as $47.80 and as low as $20.38 in the last 52 weeks. The stock is currently trading 43.03% below its 52-week high and 33.61% above its 52-week low.

With 0.14% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder.

Micron Technology Inc. (MU, Financial)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 59% margin of safety at $41.33 per share.

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The memory and storage solutions provider has a $45.47 billion market cap. Over the last five years, its revenue has grown 18.40% and its earnings per share have not changed.

Shares have declined 17% over the last 12 months; they are currently trading with a price-earnings ratio of 4.43 and a price-book ratio of 1.36. The price has been as high as $64.66 and as low as $28.39 in the last 52 weeks. The stock is currently trading 36.08% below its 52-week high and 45.58% above its 52-week low.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 5.16% of outstanding shares, followed by David Tepper (Trades, Portfolio) with 1.43% and Donald Smith (Trades, Portfolio) with 0.69%.

Walker & Dunlop Inc. (WD)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 60% margin of safety at $50.91 per share.

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The company, which provides commercial real estate finance, has a market cap of $1.54 billion. Over the last five years, its revenue has grown 20.50% and its earnings per share have increased 39.20%.

Shares have fallen 14% over the last 12 months; they are currently trading with a price-earnings ratio of 10.31 and a price-book ratio of 1.79. The price has been as high as $61.44 and as low as $37.96 in the last 52 weeks. The stock is currently trading 17.14% below its 52-week high and 34.11% above its 52-week low.

With 10.91% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.79%.

Southwest Airlines Co. (LUV)

The company has a five-star business predictability rank and, according to the DCF calculator, a 58% margin of safety at $52 per share.

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The airline has a $28.69 billion market cap. Over the last five years, its revenue has increased 9.20% and its earnings per share have grown 36%.

Shares have fallen 4% over the last 12 months; they are currently trading with a price-earnings ratio of 12.07 and a price-book ratio of 2.91. The price has been as high as $64.02 and as low as $44.28 in the last 52 weeks. The stock is currently trading 18.92% below its 52-week high and 17.23% above its 52-week low.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 13.35% of outstanding shares, followed by Warren Buffett (Trades, Portfolio) with 9.92% and Barrow, Hanley, Mewhinney & Strauss with 0.42%.

Disclosure: I do not own any stocks mentioned.

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