6 Cheap Stocks With Growing Earnings

DCF calculator gives wide margins of safety

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Jun 16, 2017
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Companies with growing earnings per share (EPS) are often good investments as they can return a solid profit to investors. Here is a selection of the most undervalued companies that have five-year growing EPS, according to the DCF calculator.

The EPS of Heartland Financial USA Inc. (HTLF) grew by 15% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 35.9% at $47.80. The price-earnings (P/E) ratio is 15.55; the price has been as high as $52.65 and as low as $32.41 in the last 52 weeks. It is 9.21% below its 52-week high and 47.49% above its 52-week low.

Heartland Financial USA has a market cap of $1.28 billion and is a multibank holding company. Through its subsidiaries it provides commercial and retail banking in the communities in which it is located.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.63% of outstanding shares followed by Paul Tudor Jones (Trades, Portfolio) with 0.02%.

The EPS of Ebix Inc. (EBIX) grew by 10% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 35.9% at $55.30. The P/E ratio is 18.28; the price has been as high as $65.10 and as low as $44.80 in the last 52 weeks. It is 15.05% below its 52-week high and 33.44% above its 52-week low.

Ebix has a market cap of $1.74 billion and provides software and e-commerce solutions to the insurance, finance and health care industries.

The company’s largest shareholder among the gurus is John Hussman (Trades, Portfolio) with 0.4% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 0.17%, Jones with 0.07%, Simons with 0.06% and Caxton Associates (Trades, Portfolio) with 0.02%.

The EPS of NeuStar Inc. (NSR) grew by 12% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 64.2% at $33.30. The P/E ratio is 10.19; the price has been as high as $34.40 and as low as $21.10 in the last 52 weeks. It is 3.20% below its 52-week high and 57.82% above its 52-week low.

NeuStar has a market cap of $1.86 billion and offers authoritative, hard-to-replicate data sets and proprietary analytics that provide insights to help clients promote and protect their businesses.

PRIMECAP Management (Trades, Portfolio) with 13.12% of outstanding shares is the largest investor among the gurus followed by John Paulson (Trades, Portfolio) with 0.36%, Mario Gabelli (Trades, Portfolio) with 0.07%, Jones with 0.05% and David Dreman (Trades, Portfolio) with 0.03%.

The EPS of GATX Corp. (GATX) grew by 21% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 24.7% at $64.65. The P/E ratio is 10.63; the price has been as high as $66.30 and as low as $40.66 in the last 52 weeks. It is 2.24% below its 52-week high and 59.41% above its 52-week low.

GATX has a market cap of $2.53 billion and leases, operates, manages and remarkets long-lived used assets in the rail and marine market. It also provides leasing, shipping, asset remarketing and asset management services.

The company’s largest shareholder among the gurus is Gabelli with 7.17% of outstanding shares followed by Joel Greenblatt (Trades, Portfolio) with 0.35%, John Hussman (Trades, Portfolio) with 0.15% and Jones with 0.01%.

The EPS of Telecom Argentina SA ADRÂ (TEO) grew by 10% over the last five years.

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 45% at $25.58. The P/E ratio is 15.67; the price has been as high as $26.17 and as low as $17.04 in the last 52 weeks. It is 3.21% below its 52-week high and 48.65% above its 52-week low.

Telecom Argentina SA ADR has a market cap of $2.63 billion and provides fixed-line telecommunications services in Argentina. It also provides international long-distance service, data transmission, IT solutions outsourcing and internet services; and mobile telecommunications services

George Soros (Trades, Portfolio) with 0.12% of outstanding shares is the largest investor among the gurus.

The EPS of 51job Inc. ADRÂ (JOBS) grew by 6% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 5.4% at $43.34. The P/E ratio is 26.95; the price has been as high as $45.36 and as low as $28.02 in the last 52 weeks. It is 5.62% below its 52-week high and 52.78% above its 52-week low.

51job has a market cap of $2.65 billion and is a provider of integrated human resource services in China. It provides these services in two categories including Recruitment Advertising Services & Other Human Resource Related Services.

The company’s largest shareholder among the gurus is Columbia Wanger (Trades, Portfolio) with 0.45% of outstanding shares followed by Simons with 0.15% and Ken Fisher (Trades, Portfolio) with 0.12%.

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