Murray Stahl (Trades, Portfolio) is the chairman of Horizon Asset Management Inc. He is also director of Research and co-portfolio manager of the Small Cap Opportunities Fund and the Paradigm Fund.
The following are the most undervalued stocks in his portfolio that have growing EPS over the last five years.
Brookfield Asset Management Inc. (BAM)’s EPS has grown by 35.20% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $33.7 and is trading with a margin of safety of 21%.
The company owns and operates assets with a focus on property, renewable energy, infrastructure and private equity. Its segments include Asset management, Property, Renewable energy, Infrastructure, Private equity, Residential development, Service and Corporate.
Brookfield’s businesses are performing well and are expanding their global real asset management franchise with the major developments and significant transactions across all its platforms. During the last quarter, net income continues to benefit from favorable operating results and increases in the value of commercial property assets, but gains in the third quarter were lower than those experienced in the year-ago quarter.
Brookfield Asset Management is trading with a P/E ratio of 11.09. During the last 12 months, the price has risen by 1% and is now trading 14.51% below its 52-week high and 11.77% above its 52-week low.
The company's main shareholder among the gurus is Lou Simpson (Trades, Portfolio) with a stake of 1.11%, followed by Murray Stahl (Trades, Portfolio) with 0.63% and Glenn Greenberg (Trades, Portfolio) who holds 0.57% of outstanding shares.
Biogen Inc. (BIIB)’s EPS has grown by 28.3% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $295.55 and is trading with a margin of safety of 32%.
The company is a biotechnology company. It discovers, develops, manufactures and markets therapies for the treatment of autoimmune disorders, neurodegenerative diseases and hemophilia. It also collaborates on the development and commercialization of RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia and other conditions.
During the last quarter, revenue grew by 11% and non-GAAP diluted EPS had a growth of 18% compared to the same quarter of 2014. Biogen reported an increase of 16% for GAAP net income attributable to Biogen over the third quarter of 2014.
Biogen is trading with a P/E ratio of 19.46. During the last 12 months, the price has dropped by 8% and is now trading at 38.10% below its 52-week high and 17.02% above its 52-week low.
The firm PRIMECAP Management (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake of 7.4%, followed by the investor Frank Sands (Trades, Portfolio) with 2.12%, and the mutual fund Vanguard Health Care Fund (Trades, Portfolio), which holds 1.65% of outstanding shares.
AmTrust Financial Services Inc. (AFSI)’s EPS has grown by 27.70% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $61 and is trading with a margin of safety of 63%.
AmTrust is a multinational specialty property and casualty insurer focused on generating consistent underwriting profits. It has operations in four business segments: Small Commercial Business, Specialty Risk and Extended Warranty, Specialty Program and Personal Lines Reinsurance.
During the last quarter, the company reported a growth of 17% for gross written premium and 14% for net earned premium compared to the same quarter of a year before. Gross written premium had 12% year over year growth and net earned premium had growth of 13% year over year.
AmTrust Financial Services is trading with a P/E ratio of 11.60. During the last 12 months, the price has risen by 31% and is now trading 7.37% below its 52-week high and 36.27% above its 52-week low.
Murray Stahl (Trades, Portfolio) is the main shareholder, holding 0.39% of outstanding shares of the company, followed by Chuck Royce (Trades, Portfolio) with 0.06% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.
Fossil Group Inc. (FOSL)’s EPS has grown by 25.70% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $52.12 and is trading with a margin of safety of 73%.
The company designs, markets and distributes consumer fashion accessories. For the second quarter of fiscal 2015, due to the negative impact of changes in foreign currency, the company saw a 4% reduction for worldwide net sales and diluted EPS declined by 30 cents.
Fossil Group is trading with a P/E ratio of 7.95. During the last 12 months, the price has dropped by 52% and is now trading at 52.86% below its 52-week high and 5.27% above its 52-week low.
Columbia Wanger (Trades, Portfolio) is the main guru shareholder with a stake of 2.66%, followed by Larry Robbins (Trades, Portfolio) with 1.84% and Joel Greenblatt (Trades, Portfolio) with 1.82%.
Qualcomm Inc. (QCOM)’s EPS has grown by 11.50% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $52.88 and is trading with a margin of safety of 7%.
The company develops and commercializes digital communication technology called CDMA (Code Division Multiple Access), and owns intellectual property applicable to products that implement any version of CDMA including patents, patent applications and trade secrets.
Third quarter revenues, MSM chip shipments and EPS were within the company’s guidance. Revenue had a growth of 15% and operating income grew by 8% over the second quarter.Â
Qualcomm is trading with a P/E ratio of 16.31. During the last 12 months, the price has dropped by 25% and is now trading 30.97% below its 52-week high and 4.71% above its 52-week low.
Jana Partners (Trades, Portfolio) is the main guru shareholder of the company with a stake of 1.92%, followed by the investor James Barrow (Trades, Portfolio) with 1.26% and the firm PRIMECAP Management (Trades, Portfolio) with 1.13% of outstanding shares.
