T Rowe Price's Best-Performing Stocks

- By Tiziano Frateschi

T Rowe Price Equity Income Fund bought shares in four new stocks in the third quarter and now the fund is composed of 110 stocks for a total value of $21.024 billion. The following are the ones with the best performances since that buy.

KeyCorp (KEY)

The firm acquired 9.2 million shares in KeyCorp for an average price of $11.97 per share during the third quarter; since then, the stock price has risen by 6%.


It has a market cap of $13.67 billion and an enterprise value of $18.94 billion. It is a bank holding company that through its subsidiaries provides retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to its clients.

The stock price has risen by 85% during the last five years but has dropped by 3% since the beginning of the year and by 3% during the last 12 months. The stock is now 9.85% below its 52-week high and 27.83% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. Its ROE of 7.46% and ROA of 0.86% are underperforming 57% of the companies in the Global Banks - Regional - US industry.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 0.96% of outstanding shares followed by Richard Pzena (Trades, Portfolio) with 0.66%, Jim Simons (Trades, Portfolio) with 0.42% and Richard Snow (Trades, Portfolio) with 0.4%.

Norfolk Southern Corp. (NSC)

The guru acquired 200,000 shares in Norfolk Southern for an average price of $91.01 per share during the third quarter; since then, the stock price has risen by 4%.

The company has a market cap of $27.88 billion and an enterprise value of $37.11 billion. It is engaged in the rail transportation of raw materials, intermediate products and finished goods in the Southeast, East and Midwest and, via interchange with rail carriers, to and from the rest of the U.S.

The stock price has risen by 38% during the last five years, by 16% since the beginning of the year and by 22% during the last 12 months. The stock is now 3.82% below its 52-week high and 47.23% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. Its ROE of 13.11% and ROA of 4.74% are outperforming 66% of the companies in the Global Railroads industry.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder among the gurus with 0.91% of outstanding shares followed by Simons with 0.24%, PRIMECAP Management (Trades, Portfolio) with 0.14%, Caxton Associates (Trades, Portfolio) with 0.13% and Tom Gayner (Trades, Portfolio) with 0.08%.

Citigroup Inc. (C)

The guru increased its shares in Citigroup by 4.07% during the third quarter and now holds 5,750,000 shares. Since then, the stock price has risen by 8%.

The company has a market cap of $142.33 billion and an enterprise value of $238.44 billion. It is a financial services holding company. It provides financial products and services including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.

The stock price has risen by 63% during the last five years but dropped by 4% since the beginning of the year and by 7% during the last 12 months. The stock is now 13.23% below its 52-week high and 41.92% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. Its ROE of 6.06% and ROA of 0.82% are underperforming 66% of the companies in the Global Banks - Global industry.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 0.72% of outstanding shares followed by HOTCHKIS & WILEY with 0.62%, First Pacific Advisors (Trades, Portfolio) with 0.5%, Ken Fisher (Trades, Portfolio) with 0.41%, Steven Romick (Trades, Portfolio) with 0.36% and Diamond Hill Capital (Trades, Portfolio) with 0.35%.

Southwest Airlines Co. (LUV)

The firm raised its shares in Southwest Airlines by 10.33% during the third quarter and now holds 1.7 million shares. Since then, the stock price has risen by 10%.

The company has a market cap of $25.85 billion and an enterprise value of $25.94 billion. It is an operator of a passenger airline that provides scheduled air transportation in the U.S. and international markets.

The stock price has risen by 358% during the last five years while it was flat over the last 12 months. The stock is now 18.82% below its 52-week high and 22.73% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. Its ROE of 33.30% and ROA of 11.32% are outperforming 71% of the companies in the Global Airlines industry.

The largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 11.83% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.58% and David Tepper (Trades, Portfolio) with 0.56%.

MetLife Inc. (MET)

The guru increased its shares in MetLife by 1.37% during the third quarter and now holds 7,425,000 shares. Since then, the stock price has risen by 11%.

The company has a market cap of $51.43 billion and an enterprise value of $44.57 billion. It is a provider of insurance, annuities and employee benefit programs in the U.S., Japan, Latin America, Asia, Europe and the Middle East.

The stock price has risen by 46% during the last five years but is almost flat over the last 12 months. The stock is now 10.77% below its 52-week high and 33.71% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. Its ROE of 5.85% and ROA of 0.48% are underperforming 68% of the companies in the Global Insurance - Life industry.

The largest shareholder among the gurus is Dodge & Cox with 3.56% of outstanding shares followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.68%, Diamond Hill Capital (Trades, Portfolio) with 0.67%, Pzena with 0.56%, NWQ Managers (Trades, Portfolio) with 0.13% and Snow with 0.12%.

PNC Financial Services Group Inc. (PNC)

The firm raised its shares in PNC Financial Services Group by 1.45% during the third quarter and now holds 1.75 million shares. Since then, the stock price has risen by 5%.

The company has a market cap of $44.16 billion and an enterprise value of $67.3 billion. It is a financial services company. It operates in six segments: Retail Banking; Corporate & Institutional Banking; Asset Management Group; Residential Mortgage Banking; BlackRock; and Non-Strategic Assets Portfolio.

The stock price has risen by 69% during the last five years but dropped by 4% during the last 12 months. The stock is now 7.84% below its 52-week high and 16.10% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. Its ROE of 8.04% is underperforming and ROA of 1.07% is outperforming 65% of the companies in the Global Banks - Regional - US industry.

The largest shareholder among the gurus is Barrow, Hanley, Mewhinney & Strauss with 3.77% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.51%, Pzena with 0.44%, T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.36% and Charles Brandes (Trades, Portfolio) with 0.3%.

Microsoft Corp. (MSFT)

The guru increased its shares in Microsoft by 0.63% during the third quarter and now holds 8,025,000 shares. Since then, the stock price has risen by 2%.

The company has a market cap of $449.32 billion and an enterprise value of $389.76 billion. It is engaged in designing, manufacturing, selling devices and online advertising. Its products include operating systems for computing devices, servers, phones and other devices.

The stock price has risen by 113% during the last five years, by 5% since the beginning of the year and by 21% during the last 12 months. The stock is now 1.77% below its 52-week high and 22.63% above its 52-week low.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. Its ROE of 21.64% and ROA of 9.13% are outperforming 78% of the companies in the Global Software - Infrastructure industry.

The largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 0.75% of outstanding shares followed by Jeff Ubben (Trades, Portfolio) with 0.73%, Dodge & Cox with 0.66%, Barrow, Hanley, Mewhinney & Strauss with 0.32%, First Eagle Investment (Trades, Portfolio) with 0.3% and Fisher with 0.23%.

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

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This article first appeared on GuruFocus.