Growing EPS, Margin of Safety: Herbalife, Viacom

GuruFocus' DCF calculator identifies bargains

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Jun 09, 2016
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Companies with growing EPS are often a good investment as they can return a good profit to investors. Here is a selection of the most undervalued companies, according to the DCF calculator, that have a five-year growing EPS.

Earnings per share of Silicom Ltd.Ă‚ (SILC, Financial) grew by 23% over the last five years and according to the DCF calculator, the stock at Thursday's price of $28.4 is undervalued and trading with a margin of safety of 52%.

Silicom is engaged in the design, manufacture, marketing and support of high performance networking and data infrastructure solutions for servers, server-based systems and communications devices.

The stock is trading with a PE ratio of 13.52, has been as high as $41.43 and as low as $24.86 in the last 52 weeks and is currently 31.50% below its 52-week high and 14.16% above its 52-week low.

Earnings per share of Bed Bath & Beyond Inc. (BBBY) grew by 17% over the last five years and according to the DCF calculator, the stock at Thursday's price of $44.01 is undervalued and is trading with a margin of safety of 53%.

Bed Bath & Beyond operates a chain of retail stores. It operates under the names Bed Bath & Beyond, Christmas Tree Shops, Harmon and Harmon Face Values, buybuy BABY and World Market or Cost Plus World Market.

The stock is trading with a PE ratio of 8.89, has been as high as $71.68 and as low as $41.26 in the last 52 weeks and is currently 36.48% below its 52-week high and 10.35% above its 52-week low.

The largest shareholder among the gurus is HOTCHKIS & WILEY with 4.87% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 2.71%, Jeremy Grantham (Trades, Portfolio) with 1.12%, Chuck Royce (Trades, Portfolio) with 0.99%, Ray Dalio (Trades, Portfolio) with 0.3%, Meridian Funds (Trades, Portfolio) with 0.28% Joel Greenblatt (Trades, Portfolio) with 0.14% and Robert Olstein (Trades, Portfolio) with 0.13%.

Earnings per share of Polaris Industries Inc.Ă‚ (PII) grew by 26% over the last five years and according to the DCF calculator, the stock at Thursday's price of $84.53 is undervalued and trading with a margin of safety of 51%.

Polaris Industries designs, engineers and manufactures off-road vehicles, which includes all terrain vehicles and side-by-side vehicles for recreational and utility use, snowmobiles and motorcycles.

The stock is trading with a PE ratio of 13.92, has been as high as $156.35 and as low as $67.80 in the last 52 weeks and is currently 45.05% below its 52-week high and 26.73% above its 52-week low.

Columbia Wanger (Trades, Portfolio) is thecompany's largest shareholder among the gurus, with 1.93% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.35%, Meridian Funds (Trades, Portfolio) with 0.23% and Mairs and Power (Trades, Portfolio) with 0.01%.

Earnings per share of Agrium Inc.Ă‚ (AGU) grew by 6% over the last five years and according to the DCF calculator, the stock at Thursday's price of $94.73 is undervalued and trading with a margin of safety of 52%.

Agrium is a retail supplier of agricultural products and services in North and South America and producer and marketer of agricultural nutrients and industrial products.

The stock is trading with a PE ratio of 14.08, has been as high as $109.46 and as low as $79.94 in the last 52 weeks, and is currently 12.44% below its 52-week high and 19.89% above its 52-week low.

The largest shareholders among the gurus are Jeff Ubben (Trades, Portfolio) with 2.29% of outstanding shares followed by Dodge & Cox with 2.01%, NWQ Managers (Trades, Portfolio) with 0.7%, Jim Simons (Trades, Portfolio) with 0.13%, Greenblatt with 0.12%, Dalio with 0.08%, Westport Asset Management (Trades, Portfolio) with 0.05% and John Buckingham (Trades, Portfolio) with 0.01%.

Earnings per share of Herbalife Ltd. (HLF) grew by 9% over the last five years and according to the DCF calculator, the stock at Thursday's price of $62.49 is undervalued and trading with a margin of safety of 47%.

Herbalife along with its subsidiaries sells weight management, targeted nutrition, energy, sports and fitness and outer nutrition products.

The stock is trading with a PE ratio of 14.81, has been as high as $66.26 and as low as $42.26 in the last 52 weeks and is currently 6.88% below its 52-week high and 46.00% above its 52-week low.

Carl Icahn (Trades, Portfolio) is the company's largest shareholder among the gurus with 18.32% of outstanding shares followed by Simons with 3.01% and Paul Singer (Trades, Portfolio) with 0.05%.

Earnings per share of Syntel Inc.Ă‚ (SYNT) grew by 19% over the last five years and according to the DCF calculator, the stock at Thursday's price of $46.49 is undervalued and trading with a margin of safety of 48%.

Syntel along with its subsidiaries is engaged in providing digital transformation, information technology, and knowledge process outsourcing services. Its services include programming, systems integration, outsourcing and overall project management.

The stock is trading with a PE ratio of 14.84, has been as high as $50.92 and as low as $41.07 in the last 52 weeks and is currently 8.25% below its 52-week high and 13.76% above its 52-week low.

The largest shareholder among the gurus is Simons with 0.94% of outstanding shares followed by Third Avenue Management (Trades, Portfolio) with 0.13%, Paul Tudor Jones (Trades, Portfolio) with 0.01% and Murray Stahl (Trades, Portfolio) with 0.01%.

Earnings per share of Viacom Inc. (VIAB) grew by 11% over the last five years and according to the DCF calculator, the stock at Thursday's price of $44.45 is undervalued and trading with a margin of safety of 53%.

Viacom connects with audiences in 165 countries and territories and creates television programs, motion pictures, applications, games, consumer products, social media and other entertainment content.

The stock is trading with a PE ratio of 8.73, has been as high as $68.47 and as low as $30.11 in the last 52 weeks and is currently 34.91% below its 52-week high and 48.02% above its 52-week low.

Donald Yacktman (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.12% of outstanding shares followed by Yacktman Fund (Trades, Portfolio) with 0.91%, NWQ Managers (Trades, Portfolio) with 0.71%, John Rogers (Trades, Portfolio) with 0.57%, Stahl with 0.23%, Mario Gabelli (Trades, Portfolio) with 0.06%, Richard Snow (Trades, Portfolio) with 0.06% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.06%.

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