Companies with growing earnings per share (EPS) are often good investments as they can return a solid profit to investors. According to the discount cash flow (DCF) calculator, the following are undervalued companies that have grown EPS over a five-year period.
The EPS of Allegiant Travel Co. (ALGT) grew 40% over the last five years.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 55.9% at $143.20. The price has been as high as $182.25 and as low as $121.70 in the last 52 weeks. It is 21.43% below its 52-week high and 17.67% above its 52-week low.
Allegiant Travel has a market cap of $2.38 billion and provides travel services in the U.S. It sells air transportation on a stand-alone basis or bundled with air-related and third-party services and products.
The largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 7.14% of outstanding shares followed by FPA Capital Fund (Trades, Portfolio) with 0.39%, PRIMECAP Management (Trades, Portfolio) with 0.25%, Ronald Muhlenkamp (Trades, Portfolio) with 0.09%, Chuck Royce (Trades, Portfolio) with 0.07%, Steven Cohen (Trades, Portfolio) with 0.07% and Diamond Hill Capital (Trades, Portfolio) with 0.01%.
Pricesmart Inc. (PSMT) is another company with a high EPS growth rate of 8% over the last five years.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 5.5% at $82.55. The price has been as high as $94.40 and as low as $75.80 in the last 52 weeks. It is 12.55% below its 52-week high and 8.91% above its 52-week low.
With a market cap of $2.51 billion, the company through its subsidiaries is engaged in the ownership and operation of membership shopping warehouse clubs under the trade name PriceSmart in Central America and the Caribbean.
Simons with 1.85% of outstanding shares is the largest investor among the gurus followed by Cohen with 0.38%, Royce with 0.04% and Murray Stahl (Trades, Portfolio) with 0.01%.
The EPS of Home BancShares Inc. (HOMB) grew 23% over the last five years.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 33.2% at $24.54. The price-earnings (P/E) ratio is 19.02, and the price has been as high as $29.69 and as low as $19.74 in the last 52 weeks. It is 17.35% below its 52-week high and 24.32% above its 52-week low.
Home BancShares has a market cap of $3.52 billion and is active in the financial services sector in the U.S. The bank provides a broad range of commercial and retail banking as well as related financial services.
Grand Canyon Education Inc. (LOPE)’s EPS grew 23% over the last five years.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 15.9% at $76.90. The P/E ratio is 22.75, and the price has been as high as $83.00 and as low as $39.07 in the last 52 weeks. It is 7.35% below its 52-week high and 96.83% above its 52-week low.
With a market cap of $3.68 billion the company is an American for-profit educational firm that operates a private university in Phoenix as well as online educational programs.
Simons with 1.71% of outstanding shares is the largest investor among the gurus followed by Ken Heebner (Trades, Portfolio) with 0.34% and Jeremy Grantham (Trades, Portfolio) with 0.1%.
The EPS of Credit Acceptance Corp. (CACC) grew 18% over the last five years.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 51.1% at $242.16. The P/E ratio is 13.93, and the price has been as high as $264.43 and as low as $160.63 in the last 52 weeks. It is 8.42% below its 52-week high and 50.76% above its 52-week low.
The company has a market cap of $4.7 billion. It is a consumer finance company that offers automobile dealers financing programs that enable them to sell vehicles to consumers regardless of their credit history.
The company’s largest shareholder among the gurus is Ruane Cunniff (Trades, Portfolio) with 4.98% of outstanding shares followed by Seth Klarman (Trades, Portfolio) with 1.26%, Grantham with 1.05%, Columbia Wanger (Trades, Portfolio) with 0.51%, George Soros (Trades, Portfolio) with 0.24% and Mario Gabelli (Trades, Portfolio) with 0.02%.
The EPS of Hexcel Corp. (HXL) grew 15% over the last five years.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 14.1% at $54.25. The P/E ratio is 19.64, and the price has been as high as $55.91 and as low as $41.03 in the last 52 weeks. It is 2.97% below its 52-week high and 32.22% above its 52-week low.
Hexcel has a market cap of $4.93 billion and is a composites company. It develops, manufactures and markets composites, including carbon fibers, reinforcements, honeycomb, adhesives and composite structures, for use in Commercial Aerospace, Space and Defense and Industrial markets.
Lou Simpson (Trades, Portfolio) with 2.16% of outstanding shares is the largest investor among the gurus followed by Cohen with 0.85%, Robert Karr (Trades, Portfolio) with 0.43% and Tom Gayner (Trades, Portfolio) with 0.04%.
Banco Macro SA ADRÂ (BMA)’s EPS grew 44% over the last five years.
According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 55.2% at $90.00. The P/E ratio is 5.26, and the price has been as high as $97.86 and as low as $61.12 in the last 52 weeks. It is 8.03% below its 52-week high and 47.25% above its 52-week low.
Banco Macro has a market cap of $5.26 billion and is a commercial bank with standard banking products and services. It provides its services to retail customers and small to medium-size businesses.
The company’s largest shareholder among the gurus is Simons with 0.1% of outstanding shares followed by Manning & Napier Advisors Inc. with 0.07%, Caxton Associates (Trades, Portfolio) with 0.05% and Ken Fisher (Trades, Portfolio) with 0.01%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
