Morning Coffee: Most Widely Held Guru Stocks Near 52-week Lows

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Jun 06, 2014
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This morning we are going to take a look at stocks that are most widely held by the gurus and trading near their 52-week lows:

Coach Inc. (COH) closed at $39.58 on 6/5/2014 near its 52-week low of $38.68. The company is one of the most recognizable fine accessories brands in the United States and in targeted international markets. They are known for the fashionable handbags and accessories that use high quality leathers, fabrics, and materials. The stock is currently trading with an implied growth rate of 5.38 percent according to the GuruFocus DCF Calculator. Earnings have grown at an annual rate of 19.10 percent for the past ten years, but analysts are expecting a sharp decline in growth. The stock is undervalued if it can start to grow its earnings again. The stock is held by 19 gurus we follow.

Market Cap: 10.85 billion, P/E: 11.90

Business Predictability: 3.5/5, Financial Strength: 7/10, Profitability & Growth: 8/10

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Staples Inc. (SPLS) closed at $11.20 on 6/5/2014, near its 52-week low of $10.86. Staples is the world’s leading office products company. It pioneered the office products superstore in 1986 and currently serves businesses of all sizes and consumers in North America, Europe, Australia, South America, and Asia. The stock is currently trading with an implied growth rate of 6.67 percent according to the GuruFocus DCF Calculator. Analysts are expecting earnings to be flat for the next two years. The stock could make a big move if earnings begin to grow. The next earnings announcement is in August. The stock is held by 19 gurus we follow.

Market Cap: 7.24 billion, P/E: 13.20

Business Predictability: 1/5, Financial Strength: 8/10, Profitability & Growth: 6/10

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Bed Bath & Beyond Inc. (BBBY) closed at $61.33 on 6/5/2014, near its 52-week low of $60.29. The company is a retailer that operates under the names of Bed Bath & Beyond, Christmas Tree Shops andThat!, Harmon Face Values, buybuy BABY, and World Market. It sells a wide assortment of domestics merchandise and home furnishings. The stock is trading with an implied growth rate of 7.81 percent according to the GuruFocus DCF Calculator. Analysts are estimating an annual growth rate of about 10 percent for the next five years making the stock a bargain. Fair value with a 10 percent growth rate is $70.66. The stock is held by 16 gurus we follow.

Market Cap: 12.51 billion, P/E: 12.50

Business Predictability: 4/5, Financial Strength: 7/10, Profitability & Growth: 7/10

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Gaming and Leisure Properties Inc. (GLPI) closed at $33.90 on 6/5/2014, near its 52-week low of $33.20. The company is a recent spin-off from Penn National Gaming. It now owns the properties of Penn National and is collecting lease payments. The now independent company is looking to acquire more gaming real estate and is open to lease the properties to other casino operators. Gaming and Leisure is also interested in expanding outside of casino gaming. Analysts are expecting the new company to earn $2.54 per share for 2014, and then grow at a rate of 5.1 percent. It is overpriced if those estimates are correct. The stock is held by 12 gurus we follow.

Market Cap: 3.8 billion, P/E: 69.90

Business Predictability: Not Rated, Financial Strength: 5/10, Profitability & Growth: 4/10

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Sally Beauty Holdings Inc. (SBH) closed at $25.14 on 6/5/2014, near its 52-week low of $24.38. The company is an international specialty retailer and distributor of professional beauty supplies with operations primarily in North America, South America, and Europe. It is the largest distributor of professional beauty supplies in the United States based on store count. The stock is currently trading with an implied growth rate of 12.17 percent according to the GuruFocus DCF Calculator. Analysts are estimating and annual growth rate of 10.4 percent for the next five years. According to the analyst estimates, the stock is overvalued. The stock is held by 10 gurus we follow.

Market Cap: 4.07 billion, P/E: 17.10

Business Predictability: Not Rated, Financial Strength: 8/10, Profitability & Growth: 7/10

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For the complete list of Guru owned stocks that have reached their 52-week lows, go to: GuruFocus list of 52-week lows.