Meridian Funds is a long-term small-cap investment firm with several mutual fund strategies. The firm was founded by the late Richard Aster Jr.Â
The following are the most undervalued stocks in Meridian's portfolio that have growing EPS over the last five years.
Polaris Industries Inc. (PII)’s EPS has grown by 34.80% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $98, trading with a margin of safety of 42%.
The company and its subsidiaries are engaged in the designing, engineering and manufacturing of Off-Road Vehicles (ORV), including All-Terrain Vehicles (ATV) and side-by-side vehicles for recreational and utility use, snowmobiles, and On-Road vehicles. The company reported 10% growth for net income and delivered $2.30 EPS, beating estimates by 2 cents. In the prior year period, the company earned $2.06 per share.
Polaris Industries is trading with a P/E ratio of 13.90. During the last 12 months, the price has dropped by 35% and is now trading 37.87% below its 52-week high and 2.66% above its 52-week low.
Columbia Wanger (Trades, Portfolio) is the largest shareholder among the gurus with 0.47% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.36% and Ken Fisher (Trades, Portfolio) with 0.34%.
Apple Inc. (AAPL)’s EPS has grown by 27.90% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $118 and is trading with a margin of safety of 55%.
The company designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players. In the third quarter, the company reported 33% growth for revenue and 45% growth in EPS year over year.
Apple is trading with a P/E ratio of 13.60. During the last 12 months, the price has increased by 4% and is now trading 12.55% below its 52-week high and 27.89% above its 52-week low.
The largest shareholder among the gurus is Carl Icahn (Trades, Portfolio) with 0.95% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 0.2% and Ken Fisher (Trades, Portfolio) with 0.2%.
Union Pacific Corp. (UNP)’s EPS has grown by 23.60% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $75 and is trading with a margin of safety of 54%.
Union Pacific is the operating company of Union Pacific Railroad Company, which links 23 states in the western two-thirds of the country by rail. In the third quarter, diluted EPS decreased by 2% and operating income by 5%. The company repurchased 13.8 million shares in the third quarter 2015.
Union Pacific Corp. is trading with a P/E ratio of 13.02. During the last 12 months, the price has dropped by 35% and is now trading 39.29% below its 52-week high and 1.10% above its 52-week low.
PRIMECAP Management (Trades, Portfolio) is largest shareholder of the company among the gurus with 0.55% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 0.23% and Pioneer Investments (Trades, Portfolio) with 0.19%.
BlackRock Inc. (BLK)’s EPS has grown by 22.40% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $348 and is trading with a margin of safety of 37%.
Blackrock is a publicly traded investment management firm with employees in more than 30 countries who serve clients in over 100 countries. It provides a range of investment and risk management services. In the last quarter, revenues increased by 2% from the same quarter of a year before and operating income had a 65% growth.
BlackRock is trading with a P/E ratio of 17.92. During the last 12 months, the price has dropped by 4% and is now trading 8.42% below its 52-week high and 27.49% above its 52-week low.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.11% of outstanding shares, followed by Tom Gayner (Trades, Portfolio) with 0.09% and Manning & Napier Advisors with 0.05%.
LKQ Corp. (LKQ)’s EPS has grown by 22.70% over the last five years and according to the DCF calculator, the stock is undervalued at its current price of $29 and is trading with a margin of safety of 22%.
The company provides replacement parts, components and systems needed to repair cars and trucks. It distributes products to collision and mechanical repair shops. LKQ reported third quarter revenue with a growth of 6.4%; 10.2% on a constant currency basis and net income with a growth of 10.7%.
LKQ is trading with a P/E ratio of 22.04. During the last 12 months, the price did not face any change and is now trading 9.58% below its 52-week high and 27.34% above its 52-week low.
David Rolfe (Trades, Portfolio) is largest shareholder of the company among the gurus with 3.08% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 2.51% and Alan Fournier (Trades, Portfolio) with 1.54%.
Ametek Inc. (AME)’s EPS has grown by 22.30% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $54.05 and is trading with a margin of safety of 7%.
The company is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. The company reported 3% decrease for sales from last year's third quarter, but operating income increased 3%. Operating margins were up 130 basis points to 23.8%, and diluted EPS grew by 5%.
Ametek is trading with a P/E ratio of 21.60. During the last 12 months, the price has risen by 6% and is now trading 6.66% below its 52-week high and 12.50% above its 52-week low.
The largest shareholder among the gurus is Lou Simpson (Trades, Portfolio) with 3.42% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 2.68% and Mario Gabelli (Trades, Portfolio) with 1.11%.
