Bargain Stocks With Growing Earnings

DCF calculator identifies undervalued investment opportunities

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Aug 08, 2016
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Companies with growing EPS are often good investments 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 Signature Bank (SBNY) grew by 23% over the last five years and according to the DCF calculator, the stock at the price of $124.13 is undervalued and is trading with a margin of safety of 43%.

The company is a full-service commercial bank that offers business and personal banking products and services as well as investment, brokerage, asset management and insurance products and services through its subsidiary.

The stock is trading with a price-earnings (PE) ratio of 16.40; its price has been as high as $163.15 and as low as $114.36 in the last 52 weeks and is 23.92% below its 52-week high and 8.54% above its 52-week low.

Columbia Wanger (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.73% of outstanding shares followed by Ken Heebner (Trades, Portfolio) with 0.61%, Jim Simons (Trades, Portfolio) with 0.41%, Pioneer Investments (Trades, Portfolio) with 0.07% and RS Investment Management (Trades, Portfolio) with 0.06%.

Earnings per share of Hibbett Sports Inc. (HIBB) grew by 12% over the last five years and according to the DCF calculator, the stock at the price of $35.57 is undervalued and is trading with a margin of safety of 41%.

The company is an operator of sporting goods retail stores in small to mid-sized markets mainly in the Southeast, Southwest, Mid-Atlantic and the Midwest.

The stock is trading with a PE ratio of 11.77, has been as high as $46.18 and as low as $27.58 in the last 52 weeks and is Ă‚ 22.98% below its 52-week high and 28.97% above its 52-week low.

Barrow, Hanley, Mewhinney & Strauss is the company's largest shareholder among the gurus, with 0.64% of outstanding shares followed by Robert Olstein (Trades, Portfolio) with 0.23%, Joel Greenblatt (Trades, Portfolio) with 0.19% and Jeremy Grantham (Trades, Portfolio) with 0.04%.

Earnings per share of ConnectOne Bancorp Inc.(CNOB) grew by 18% over the last five years and according to the DCF calculator, the stock at the price of $17.26 is undervalued and trading with a margin of safety of 39%.

The company is a holding company for Union Center National Bank. It offers lending, depository and related financial services to commercial, industrial and governmental customers.

The stock is trading with a PE ratio of 12.55, its price has been as high as $21.60 and as low as $14.86 in the last 52 weeks, and it is currently 20.09% below its 52-week high and 16.15% above its 52-week low.

The largest shareholder among the gurus is Simons with 2.55% of outstanding shares.

Earnings per share of Super Micro Computer Inc.(SMCI) grew by 19% over the last five years and according to the DCF calculator, the stock at the price of $21.48 is undervalued and trading with a margin of safety of 38%.

It is a server technology and green computing company. It develops and provides high performance server solutions based upon a modular and open-standard architecture.

The stock is trading with a PE ratio of 11.80, has been as high as $34.69 and as low as $18.60 in the last 52 weeks and is currently 38.08% below its 52-week high and 15.48% above its 52-week low.

Chuck Royce (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.02% of outstanding shares followed by Greenblatt with 0.24%, Scott Black (Trades, Portfolio) with 0.13% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

Earnings per share of Jacksonville Bancorp Inc. (JXSB) grew by 6% over the last five years and according to the DCF calculator, the stock at the price of $28.36 is undervalued and trading with a margin of safety of 41%.

It is a holding company for Jacksonville Savings Bank, which is engaged mainly in the business of attracting retail deposits from the general public in its market area.

The stock is trading with a PE ratio of 16.48, has been as high as $33.08 and as low as $23.19 in the last 52 weeks and is 14.27% below its 52-week high and 22.29% above its 52-week low.

Earnings per share of Packaging Corp. of America (PKG) grew by 25% over the last five years and according to the DCF calculator, the stock at the price of $74.63 is undervalued and trading with a margin of safety of 40%.

The company is a producer of container board and corrugated products in the U.S. It also produces multicolor boxes and displays, as well as meat boxes and wax-coated boxes for the agricultural industry.

The stock is trading with a PE ratio of 15.99, has been as high as $76.00 and as low as $44.32 in the last 52 weeks and is 1.80% below its 52-week high and 68.39% above its 52-week low.

First Eagle Investment (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.76% of outstanding shares followed by HOTCHKIS & WILEY with 0.99%, Greenblatt with 0.46%, Olstein with 0.14%, Pioneer Investments (Trades, Portfolio) with 0.1% and Steven Cohen (Trades, Portfolio) with 0.06%.

Earnings per share of Outerwall Inc.(OUTR) grew by 9% over the last five years and according to the DCF calculator, the stock at the price of $52.58 is undervalued and trading with a margin of safety of 37%.

It is a provider of automated retail solutions offering convenient products and services that benefit consumers and drive incremental retail traffic and revenue for retailers.

The stock is trading with a PE ratio of 6.80, has been as high as $68.93 and as low as $24.81 in the last 52 weeks and is 23.72% below its 52-week high and 11.93% above its 52-week low.

The largest shareholder among the gurus is Greenblatt with 3.05% of outstanding shares followed by Simons with 1.87%, Cohen with 0.87% and Mario Gabelli (Trades, Portfolio) with 0.05%.

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

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