Steady and Growing EPS: Air Methods, Century Bancorp

Undervalued stocks with great potential

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Jul 20, 2016
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Companies with growing EPS are often good investments because they can return a good profit to investors. Here is a selection of the most undervalued companies, according to the DCF calculator, that have had five-year growing EPS.

Earnings per share of Discover Financial Services (DFS) grew by 25% over the last five years and according to the DCF calculator, the stock at the current price of $57.09 is undervalued and is trading with a margin of safety of 62%.

Discover Financial Services is a direct banking and payment services company. It offers credit card loans, private student loans, personal loans, home equity loans and deposit products.

The stock is trading with a PE ratio of 1.96, and has traded as high as $59.88 and as low as $42.86 in the last 52 weeks. It is currently 4.66% below its 52-week high and 33.20% above its 52-week low.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus, with 1.2% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.69%, NWQ Managers (Trades, Portfolio) with 0.54%, Pioneer Investments (Trades, Portfolio) with 0.07%, John Keeley (Trades, Portfolio) with 0.02%, Diamond Hill Capital (Trades, Portfolio) with 0.01% and Lee Ainslie (Trades, Portfolio) with 0.01%.

Earnings per share of Itau Unibanco Holding SA ADRÂ (ITUB) grew by 18% over the last five years and according to the DCF calculator, the stock at the current price of $10.46 is undervalued and is trading with a margin of safety of 44%.

The company provides financial products and services in Brazil. It provides investment banking, consumer credit card, real estate financing, leasing, foreign exchange and foreign trade financing services.

The stock is trading with a PE ratio of 6.79. It has as high as $10.51 and as low as $5.48 in the last 52 weeks. It is currently 0.48% below its 52-week high and 90.88% above its 52-week low.

Howard Marks (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 0.1% of outstanding shares followed by John Rogers (Trades, Portfolio) with 0.03% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

Earnings per share of Century Bancorp Inc. Class AÂ (CNBKA) grew by 10% over the last five years and according to the DCF calculator, the stock at the current price of $43.82 is undervalued and is trading with a margin of safety of 55%.

Century Bancorp Inc. through its subsidiary bank, Century Bank and Trust Company, offers services to commercial enterprises, state and local governments and agencies, nonprofit organizations and individuals.

The stock is trading with a PE ratio of 10.31. It as been high as $45.10 and as low as $32.54 in the last 52 weeks, and is currently 2.84% below its 52-week high and 34.67% above its 52-week low.

The largest shareholder among the gurus are Jim Simons (Trades, Portfolio) with 0.31% of outstanding shares followed by Scott Black (Trades, Portfolio) with 0.22%.

Earnings per share of Air Methods Corp.(AIRM) grew by 19% over the last five years and according to the DCF calculator, the stock at the current price of $38.01 is undervalued and is trading with a margin of safety of 54%.

The company is a provider of air medical emergency transport services and systems throughout the U.S. It also designs, manufactures and installs medical aircraft interiors and other aerospace and medical transport products..

The stock is trading with a PE ratio of 13.06. It has traded as high as $46.49 and as low as $32.72 in the last 52 weeks, and is currently 18.24% below its 52-week high and 16.17% above its 52-week low.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 1.22% of outstanding shares followed by Paul Tudor Jones (Trades, Portfolio) with 0.14% and Steven Cohen (Trades, Portfolio) with 0.04%.

Earnings per share of Telecom Argentina SA ADRÂ (TEO) grew by 13% over the last five years and according to the DCF calculator, the stock at the current price of $19.24 is undervalued and is trading with a margin of safety of 57%.

It provides fixed-line public telecommunication services, international long-distance service, data transmission and Internet services in Argentina with segments Fixed Services, Personal Mobile Services and Nucleo Mobile Services.

The stock is trading with a PE ratio of 16.81. It has traded as high as $20.28 and as low as $13.36 in the last 52 weeks, and is currently 5.13% below its 52-week high and 44.01% above its 52-week low.

The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 1.16% of outstanding shares followed by Howard Marks (Trades, Portfolio) with 0.27%.

Earnings per share of BRF SA ADRÂ (BRFS) grew by 27% over the last five years and according to the DCF calculator, the stock at the current price of $15.57 is undervalued and is trading with a margin of safety of 30%.

The company is a producers of fresh and frozen protein foods. It includes marinated, frozen, whole and cutChester rooster and turkey meats, specialty meats, frozen processed meats, frozen prepared entrees and portioned products.

The stock is trading with a PE ratio of 15.82. It has traded as high as $21.72 and as low as $11.05 in the last 52 weeks, and is currently 28.31% below its 52-week high and 40.90% above its 52-week low.

Jim Simons (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 1.15% of outstanding shares followed by Howard Marks (Trades, Portfolio) with 0.35% and Sarah Ketterer (Trades, Portfolio) with 0.01%.

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

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