In the wake of a volatile 2018, investors are approaching the New Year with caution. Value opportunities may be found among companies that outperformed the Standard & Poor’s 500 Index over the year. As of Dec. 28, the GuruFocus All-in-One Screener discovered several stocks with a market cap over $5 billion that had a higher return compared to the index and were trading below Peter Lynch value.
The screener identified value opportunities within the consumer defensive industry. Companies in this industry are often considered good investments because the products they produce are consistently in demand, regardless of economic conditions.
One such company is an Illinois-based food distribution company, which GuruFocus rated 6 out of 10 for financial strength. Despite weak interest coverage and declining revenue per share in recent years, the company’s Altman Z-Score of 3.65 indicates it is financially healthy. US Foods’ profitability and growth received a 5 out of 10 rating, boosted by an expanding operating margin and a high Piotroski F-Score of 7.
Notably, Mario Cibelli (Trades, Portfolio) holds the largest guru shareholder position with 0.68% of outstanding shares. Other guru investors include Simons’ firm, Grantham, Cohen, and Greenblatt.
In other news, Andreas Halvorsen recently invested in biotech company Moderna and took a large stake in Axovant Sciences. Meanwhile, Walgreens’ shares declined following the announcement of a $1 billion cost-savings program.
Please note that the information provided does not include any specific positions held.