6 Predictable Guru Stocks

Alliance Data Systems makes the list

Author's Avatar
Jun 18, 2019
Article's Main Image

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

Rush Enterprises Inc. (RUSHA, Financial)

The company has a three-star business predictability rank and, according to the discounted cash flow calculator, a 63% margin of safety at $35.47 per share.

765512273.png

The company, which operates a network of commercial vehicle dealerships, has a market cap of $1.31 billion and an enterprise value of $3.03 billion. Over the last five years, its revenue has grown 6.80% and its earnings per share have increased 22.20%.

Over the last 12 months, the stock has fallen 21% and is currently trading with a price-earnings ratio of 9.03. The share price has been as high as $46.34 and as low as $31.53 in the last 52 weeks. As of Tuesday, the stock was trading 23.46% below its 52-week high and 12.50% above its 52-week low.

With 2.47% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 2.28% and Ronald Muhlenkamp (Trades, Portfolio) with 0.68%.

Alliance Data Systems Corp. (ADS, Financial)

The company has a five-star business predictability rank and, according to the DCF calculator, a 68% margin of safety at $140 per share.

828753713.png

The company, which operates in the credit services industry, has a market cap of $7.32 billion and an enterprise value of $16.62 billion. Over the last five years, its revenue has increased 17.10% and its earnings per share have grown 18.20%.

Shares have fallen 40% over the last 12 months and are currently trading with a price-earnings ratio of 8.05 and a price-book ratio of 3.32. The price has been as high as $250.27 and as low as $135.64 in the last 52 weeks. As of Tuesday, the stock was trading 44.14% below its 52-week high and 3.07% above its 52-week low.

With 9.75% of outstanding shares, Jeff Ubben (Trades, Portfolio)’s ValueAct Holdings is the company's largest guru shareholder, followed by Glenn Greenberg (Trades, Portfolio) with 2.11% and the Parnassus Endeavor Fund (Trades, Portfolio) with 1.87%.

Miller Industries Inc. (MLR, Financial)

The company has a 4.5-star business predictability rank and, according to the DCF calculator, a 64% margin of safety at $28.29 per share.

1848246258.png

The company, which manufactures towing and recovery equipment, has a $322.51 million market cap and an enterprise value of $336.05 billion. Over the last five years, its revenue has grown 10.70% and its earnings per share have risen 25.40%.

Shares have risen 11% over the last 12 months; the stock is currently trading with a price-earnings ratio of 9.01 and a price-book ratio of 1.37. The price has been as high as $35.26 and as low as $22.80 in the last 52 weeks. The stock is currently trading 19.77% below its 52-week high and 24.08% above its 52-week low.

With 11.27% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Hotchkis & Wiley with 8.53% and Simons' firm with 1.03%.

Sally Beauty Holdings Inc. (SBH, Financial)

The company has a four-star business predictability rank and, according to the DCF calculator, a 63% margin of safety at $14.76 per share.

291347796.png

The professional beauty products retailer has a $1.78 billion market cap. Over the last five years, its revenue has grown 8.70% and its earnings per share have risen 5.30%.

Shares have fallen 5.32% over the last 12 months; the stock is currently trading with a price-earnings ratio of 7.31 and a price-book ratio of 6.66. The price has been as high as $23.61 and as low as $13.72 in the last 52 weeks. The stock is currently trading 37.48% below its 52-week high and 7.58% above its 52-week low.

The company's largest guru shareholder is Lee Ainslie (Trades, Portfolio) with 0.75% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.69% and Steven Cohen (Trades, Portfolio) with 0.14%.

Encore Capital Group Inc. (ECPG, Financial)

The company has a five-star business predictability rank and, according to the DCF calculator, a 61% margin of safety at $35.64 per share.

2106831787.png

The consumer banking company has a market cap of $1.1 billion. Over the last five years, its revenue has grown 8.50% and its earnings per share have increased 4.10%.

Shares have fallen 7% over the last 12 months; the stock is currently trading with a price-earnings ratio of 7.49 and a price-book ratio of 1.28. The price has been as high as $41.50 and as low as $20.38 in the last 52 weeks. The stock is currently trading 14.12% below its 52-week high and 74.99% above its 52-week low.

With 0.16% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Paul Tudor Jones (Trades, Portfolio) with 0.03%.

Walker & Dunlop Inc. (WD, Financial)

The company has a 3.5-star business predictability rank and, according to the DCF calculator, a 61% margin of safety at $53.43 per share.

1575251554.png

The commercial real estate finance company has a $1.64 billion market cap. Over the last five years, its revenue has increased 21.90% and its earnings per share have grown 39.20%.

Shares have fallen 8% over the last 12 months; the stock is currently trading with a price-earnings ratio of 10.12 and a price-book ratio of 1.78. The price has been as high as $60.67 and as low as $37.96 in the last 52 weeks. The stock is currently trading 11.93% below its 52-week high and 40.75% above its 52-week low.

The company's largest guru shareholder is Royce with 0.87% of outstanding shares, followed by Simons’ firm with 0.51%.

Disclosure: I do not own any stocks mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.