5 Undervalued Stocks Boosting Earnings

Amerco makes the list

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Jan 19, 2021
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The following industrial companies have grown their earnings per share over a five-year period. According to the GuruFocus discounted cash flow calculator as of Jan. 19, all of them also trade with a margin of safety.

Amerco

Amerco Inc.'s (UHAL) earnings per share have grown 2.70% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with an 30.44% margin of safety at $437.17 per share. The price-earnings ratio is 18.29. The share price has been as high as $487.32 and as low as $222.34 in the last year; it is currently 2.90% below its 52-week high and 112.81% above its 52-week low.

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The U.S. company, which provides rental trucks to household movers, has a market cap of $9.28 billion and an enterprise value of $12.87 billion.

The company's largest guru shareholder is David Abrams (Trades, Portfolio) with 2.87% of outstanding shares, followed by Yacktman Asset Management (Trades, Portfolio) with 1.30% and Barrow, Hanley, Mewhinney & Strauss with 1.18%.

Snap-on

The earnings per share of Snap-on Inc. (SNA) have climbed 11.90% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 32.07% margin of safety at $168.57 per share. The price-earnings ratio is 15.57. The share price has been as high as $183.23 and as low as $90.72 in the last year; it is currently 8% below its 52-week high and 85.81% above its 52-week low.

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The company, which provides premium tools and software for professional technicians, has a market cap of $9.14 billion and an enterprise value of $9.89 billion.

The company's largest guru shareholder is John Rogers (Trades, Portfolio) with 1.85% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.11% and Richard Pzena (Trades, Portfolio) with 0.47%.

Robert Half

Robert Half International Inc.'s (RHI) earnings per share have grown 10.30% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 21.37% margin of safety at $63.79 per share. The price-earnings ratio is $22.38. The share price has been as high as $67.23 and as low as $32.38 in the last year; it is currently 5.12% below its 52-week high and 97% above its 52-week low.

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The U.S. company, which operates in the business services industry, has a market cap of $16.66 billion and an enterprise value of $18.96 billion.

With a 1.08% stake, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.33% and Ron Baron (Trades, Portfolio) with 0.09%.

Simpson Manufacturing

The earnings per share of Simpson Manufacturing Co. Inc. (SSD) have climbed 19.60% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with an 15.53% margin of safety at $99.49 per share. The price-earnings ratio is 23.58 The share price has been as high as $104.35 and as low as $47.02 in the last year; it is currently 4.64% below its 52-week high and 11.59% above its 52-week low.

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The company, which manufactures wood construction products, has a market cap of $4.32 billion and an enterprise value of $4.13 billion.

The company's largest guru shareholder is Rogers with 1.34% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 1% and Ken Fisher (Trades, Portfolio) with 0.37%.

Insperity

Insperity Inc.'s (NSP) earnings per share have climbed 50.20% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 24.12% margin of safety at $84.90 per share. The price-earnings ratio is $21.60. The share price has been as high as $95.78 and as low as $22.59 in the last year; it is currently 11.36% below its 52-week high and 275.83% above its 52-week low.

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The company, which provides human resources and business solutions, has a market cap of $3.26 billion and an enterprise value of $3.28 billion.

With a 0.54% stake, Simons' firm is the company's largest guru shareholder, followed by Jerome Dodson (Trades, Portfolio) with 0.32% and Steven Cohen (Trades, Portfolio) with 0.02%.

Disclosure: I do not own any stocks mentioned.

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