6 Stocks Beating the Market

According to GuruFocus’ All-in-One Guru Screener, the following are some of the stocks that have outperformed the Standard & Poor’s 500 Index over the last 12 months and were bought by gurus during the last quarter.

With a market cap of $398.5 billion, Alibaba Group Holding Ltd. ADR (NYSE:BABA) has outperformed the S&P 500 Index by 75.7% over the last 12 months.

It is an online and mobile commerce company that operates China’s most popular online marketplaces, including Taobao (C2C), Tmall (B2C) and Juhuasuan. It is also involved in advertising, digital media and cloud computing.

Its shares are trading with a price-book (P/B) ratio of 9.65. According to the discounted cash flow (DCF) calculator, the stock is overpriced by 478% at $157.56 per share. The price is 88.10% above its 52-week low and 3.89% below its 52-week high.

The company has a profitability and growth rating of 8 out of 10. Its return on equity (ROE) of -17.52% and return on assets (ROA) of 9.68% are outperforming 81% of other companies in the Global Specialty Retail industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 1.64 is above the industry median of 0.95.

The company’s largest shareholder among the gurus is Frank Sands (Trades, Portfolio) with 0.68% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.62%, Ken Fisher (Trades, Portfolio) with 0.41%, Steve Mandel (Trades, Portfolio) with 0.39% and Spiros Segalas (Trades, Portfolio) with 0.3%.

With a market cap of $237.3 billion, Bank of America Corp. (NYSE:BAC) has outperformed the S&P 500 Index by 51.8% over the last 12 months.

The bank provides financial products and services to people, companies and institutional investors.

Its shares are trading with a P/B ratio of 0.97. According to the DCF calculator, the stock is overpriced by 34% at $24.03 per share. The price is 71.11% above its 52-week low and 6.55% below its 52-week high.

The company has a profitability and growth rating of 2 out of 10. Its ROE of -6.72% and ROA of 0.89% are underperforming 67% of other companies in the Global Banks – Global industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.65 is below the industry median of 2.09.

Dodge & Cox is the largest shareholder of the company among the gurus with 1.88% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.66%, Hotchkis & Wiley with 0.3%, First Pacific Advisors (Trades, Portfolio) with 0.25%, Richard Pzena (Trades, Portfolio) with 0.22% and Bill Nygren (Trades, Portfolio) with 0.2%.

With a market cap of $9.62 billion, Braskem SA (NYSE:BAK) has outperformed the S&P 500 Index by 104.8% over the last 12 months.

The petrochemical company produces a diversified portfolio of petrochemical and thermoplastic products and thermoplastic resins.

Its shares are trading with a P/B ratio of 10.46. The price is 118.55% above its 52-week low and 5.85% below its 52-week high.

The company has a profitability and growth rating of 7 out of 10. Its ROE of -13.53% and ROA of -1.00% are underperforming 91% of other companies in the Global Chemicals industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.32 is below the industry median of 0.76.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.82% of outstanding shares, followed by John Hussman (Trades, Portfolio) with 0.09%.

With a market cap of $17.8 billion, Credicorp Ltd. (NYSE:BAP) has outperformed the S&P 500 Index by 6.5% over the last 12 months.

Credicorp is a Peruvian financial services company that provides financial and health services and products. 

Its shares are trading with a P/B ratio of 2.94. According to the DCF calculator, the stock is undervalued with a margin of safety of 20% at $188.91 per share. The price is 30.38% above its 52-week low and 0.13% below its 52-week high.

The company has a profitability and growth rating of 7 out of 10. Its ROE of 24.69% and ROA of 2.84% are outperforming 91% of other companies in the Global Banks – Regional – Latin America industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 1.89 is below the industry median of 2.09.

With 1.37% of outstanding shares, Fisher is the largest guru shareholder of the company, followed by Simons with 0.36%, Sands with 0.26% and the Signature Select Canadian Fund (Trades, Portfolio) with 0.02%.

With a market cap of $33 billion, Baxter International Inc. (NYSE:BAX) has outperformed the S&P 500 Index by 13.2% over the last 12 months.

The health care company provides renal and hospital products, including infusion systems, parenteral nutrition therapies and biosurgery products.

Its shares are trading with a P/B ratio of 3.77. According to the DCF calculator, the stock is overpriced by 240% at $60.73 per share. The price is 40% above its 52-week low and 4.37% below its 52-week high.

The company has a profitability and growth rating of 5 out of 10. Its ROE of 21.50% and ROA of 11.56% are outperforming 83% of other companies in the Global Medical Instruments and Supplies industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 1.03 is below the industry median of 1.55.

The company’s largest shareholder among the gurus is Daniel Loeb (Trades, Portfolio) with 8.46% of outstanding shares, followed by Nygren with 0.97%, the Vanguard Health Care Fund (Trades, Portfolio) with 0.57%, Simons with 0.35%, Mairs and Power (Trades, Portfolio) with 0.3% and Tweedy Browne (Trades, Portfolio) with 0.29%.

With a market cap of $5.13 billion, BlackBerry Ltd. (NASDAQ:BBRY) has outperformed the S&P 500 Index by 13.7% over the last 12 months.

The Canadian company designs, manufactures and markets wireless solutions for the mobile communications market. It also owns QNX, a leader in software used in automotive infotainment systems.

Its shares are trading with a P/B ratio of 1.77. The price 46.47% above its 52-week low and 17.04% below its 52-week high.

The company has a profitability and growth rating of 3 out of 10. Its ROE of 8.29% and ROA of 4.84% are outperforming 59% of other companies in the Global Communication Equipment industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 2.73 is above the industry median of 2.11.

The company’s largest shareholder among the gurus is Prem Watsa (Trades, Portfolio) with 8.79% of outstanding shares, followed by Simons with 2.53%, First Eagle Investment (Trades, Portfolio) with 1.16%, Kahn Brothers (Trades, Portfolio) with 0.85% and Francis Chou (Trades, Portfolio) with 0.1%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

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