As investors prepare for Berkshire Hathaway Inc.’s (BRK.A, Financial)(BRK.B, Financial) shareholder meeting, which takes place on Saturday, five stocks meeting Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio)’s key investing criteria as of Friday include Toll Brothers Inc. (TOL, Financial), Winnebago Industries Inc. (WGO, Financial), Nextstar Media Group Inc. (NXST, Financial), P.A.M. Transportation Services Inc. (PTSI, Financial) and Thor Industries Inc. (THO, Financial) according to the Buffett-Munger Screener, a Premium feature of GuruFocus.
Buffett built the Omaha, Nebraska-based company from a textile business in the 1960s to an insurance conglomerate that has a market cap of over $707 billion as of Friday. Berkshire seeks to invest in companies based on a four-criteria investing approach: understandable business, favorable growth prospects, shareholder-oriented management and attractive valuations.
GuruFocus’ Buffett-Munger Screener applies Buffett’s investing approach by looking for companies with a high business predictability rank, increasing profit margins, incurring little debt while growing business and a low price-earnings-to-growth ratio.
As of Friday, the Top 25 Buffett-Munger Companies model portfolio has returned a cumulative 340% since its inception in December 2008, compared to the Standard & Poor’s 500 index return of 357.93% over the same period. Over the past 10 years, the model portfolio has returned an annualized 8.13% per year, compared to the S&P 500 return of an annualized 9.66% per year.
Toll Brothers
Shares of Toll Brothers (TOL, Financial) traded around $62.57 on Friday, showing that the stock is fairly valued based on its price-to-GF-Value ratio of 0.96. The stock’s price-earnings-to-growth ratio of 0.22 outperforms approximately 65% of global competitors.
The Washington, Pennsylvania-based luxury homebuilding company has a GF Score of 94 out of 100 based on a rank of 10 out of 10 for profitability and growth, a GF Value rank of 5 out of 10 and a rank of 6 out of 10 for momentum and financial strength.
Toll Brothers’ positive investing signs include a 4.5-star business predictability rank, a high Piotroski F-score of 8 out of 9 and an operating margin that has increased by approximately 3.7% per year on average over the past five years.
Winnebago Industries
Shares of Winnebago Industries (WGO, Financial) traded around $59.05 on Friday, showing that the stock is significantly undervalued based on its price-to-GF-Value ratio of 0.70. The stock’s price-earnings-to-growth ratio of 0.22 outperforms approximately 94% of global competitors.
The Eden Prairie, Minnesota-based recreational vehicle company has a GF Score of 99 out of 100 based on a momentum rank of 8 out of 10, a financial strength rank of 7 out of 10 and a rank of 10 out of 10 for GF Value, profitability and growth.
Winnebago Industries’ positive investing signs include a 4.5-star business predictability rank and an operating margin that has increased by approximately 10.6% per year on average over the past five years and is outperforming more than 80% of global competitors.
Nextstar Media Group
Shares of Nextstar Media Group (NXST, Financial) traded around $165.23 on Friday, showing that the stock is modestly undervalued based on its price-to-GF-Value ratio of 0.86. The stock’s price-earnings-to-growth ratio of 0.26 outperforms approximately 90% of global competitors.
The Irving, Texas-based television station operating company has a GF Score of 94 out of 100 based on a rank of 10 out of 10 for profitability and growth, a momentum rank of 8 out of 10, a GF Value rank of 6 out of 10 and a financial strength rank of 4 out of 10.
Nextstar Media Group’s positive investing signs include a five-star business predictability rank, a high Piotroski F-score of 9 out of 9, and an operating margin that has increased by approximately 6.5% per year on average over the past five years and is outperforming more than 93% of global competitors.
P.A.M. Transportation Services
Shares of P.A.M. Transportation Services (PTSI, Financial) traded around $23.80 on Friday, showing that the stock is modestly undervalued based on its price-to-GF-Value ratio of 0.78. The stock’s price-earnings-to-growth ratio of 0.26 outperforms approximately 79% of global competitors.
The Tontitown, Arkansas-based truck loading company has a GF Score of 96 out of 100 based on a rank of 10 out of 10 for growth and GF Value, a profitability rank of 9 out of 10, and a rank of 7 out of 10 for momentum and financial strength.
P.A.M. Transportation Services’ positive investing signs include a four-star business predictability rank and an operating margin that has increased by over 34% per year on average over the past five years.
Thor Industries
Shares of Thor Industries (THO, Financial) traded around $82.28 on Friday, showing that the stock is modestly undervalued based on its price-to-GF-Value ratio of 0.72. The stock’s price-earnings-to-growth ratio of 0.28 outperforms approximately 92% of global competitors.
The Elkhart, Indiana-based recreational vehicle company has a GF Score of 97 out of 100 based on a rank of 10 out of 10 for growth and GF Value, a profitability rank of 9 out of 10, a momentum rank of 8 out of 10 and a financial strength rank of 7 out of 10.
Thor Industries’ positive investing signs include a 4.5-star business predictability rank and an operating margin that has increased by approximately 2.7% per year on average over the past five years.
