6 Guru Stocks That Could Grow Fast

Baidu is expecting to boost its earnings

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Oct 18, 2019
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According to the GuruFocus All-in-One Screener as of Oct. 9, while most of the following companies are trading at a discount, all have positive three- to five-year future earnings estimates.

Baidu Inc.

Shares of Baidu Inc. (BIDU) were trading around $107 per share on Friday.

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The Chinese Internet search engine has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have risen 11.50% over the last five years. Analysts project a three-year to five-year earnings growth rate of 1.55%. The return on equity of 10.18% and return on assets of 5.51% are underperforming 66% of companies in the online media industry.

With 2.37 % of outstanding shares, Dodge & Cox (Trades, Portfolio) is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 1.52%, David Herro (Trades, Portfolio) with 1.01% and First Pacific Advisors (Trades, Portfolio) with 0.68%.

China Telecom Corp. Ltd

On Friday, China Telecom Corp. Ltd. (CHA) is trading around $46 per share.

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With a market cap of $37 billion, the Chinese fixed-line operator has a GuruFocus profitability and growth rating of 6 out of 10. Its earnings per share have grown 0.10% over the last five years. Analysts project a three-year to five-year earnings growth rate of 8.84%. The return on equity of 6.22% and return on assets of 3.12% are outperforming 51% of companies in the communication services industry.

Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder with 0.03% of outstanding shares.

Cognizant Technology Solutions Corp.

Cognizant Technology Solutions Corp. (CTSH) is trading around $61.34 per share.

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With a market cap of $33.87 billion, the IT services company has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 9.20% over the last five years. Analysts project a three-year to five-year earnings growth rate of 10.10%. As of Friday, the return on equity of 18.95% and return on assets of 13.37% are outperforming 81% of the companies in the application software industry.

With 3.12% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Al Gore (Trades, Portfolio) with 1.89% and the Richard Pzena (Trades, Portfolio)’s Pzena Investment Management with 1.34%.

Energy Transfer LP

Energy Transfer LP (ET) is trading around $12.49 per share on Friday.

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The company has a market cap of $33 billion and a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have climbed 35.30% over the last five years. Analysts project a three-year to five-year earnings growth rate of 4.92%. While the return on equity of 22.84% is outperforming the sector, return on assets of 3.08% is underperforming 55% of companies in the Oil and Gas – Midstream industry.

With 0.22% of outstanding shares, David Tepper (Trades, Portfolio)’s Appaloosa is the company's largest guru shareholder, followed by Simons’ firm with 0.14% and Leon Cooperman (Trades, Portfolio)’s Omega Advisors with 0.12%.

Equity ResidentialÂ

Equity Residential (EQR) is trading around $87.56 per share on Friday.

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With a market cap of $32.47 billion, the company has a GuruFocus profitability and growth rating of 7 out of 10. Analysts project a three-year to five-year earnings growth rate of 11.87%. The return on equity of 7.31% and return on assets of 3.62% are outperforming 55% of companies in the REITs industry.

With 0.65% of outstanding shares, T Rowe Price Equity Income Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by the Pioneer Investments (Trades, Portfolio) with 0.11%, Chris Davis (Trades, Portfolio) with 0.06% and Paul Tudor Jones (Trades, Portfolio) with 0.06%.

O'Reilly Automotive Inc.Ă‚

O'Reilly Automotive Inc. (ORLY) is trading around $407 per share on Friday.

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The company, which provides aftermarket automotive parts and accessories, has a GuruFocus profitability and growth rating of 10 out of 10. Its earnings per share have climbed 21.10% over the last five years. Analysts project a three-year to five-year earnings growth rate of 15.46%. The return on equity of 382.35% and return on assets of 15.28% are outperforming 93% of companies in the Retail - Apparel and Specialty industry.

With 2.47% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.98% and Abrams Capital Management’s David Abrams (Trades, Portfolio) with 0.68%.

Disclosure: I do not own any stocks mentioned.

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