6 Stocks With Margins of Safety and Growing Earnings

Guru's stocks with growing EPS

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Oct 30, 2017
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Companies growing their 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 undervalued companies have grown their EPS over a five-year period.

The EPS of Credicorp Ltd. (BAP) has grown 15% over the past five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 13.9% at $210.66 per share. The price-earnings (P/E) ratio is 17.25. The stock price has been as high as $213.82 and as low as $146.03 in the past 52 weeks; it is 3.47% below its 52-week high and 41.35% above its 52-week low.

The financial services company with headquarters in Peru has a market cap of $19.48 billion and enterprise value of $15.05 billion.

The largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 1.33% of outstanding shares followed by Frank Sands (Trades, Portfolio) with 0.27%, Jim Simons (Trades, Portfolio) with 0.18% and Jeremy Grantham (Trades, Portfolio) with 0.11%.

WPP PLC ADR’s (WPPGY) EPS has grown 11% over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 43.8% at $85.20 per share. The P/E ratio is 9.76. The stock price has been as high as $119.12 and as low as $86.81 in the past 52 weeks; it is 26.45% below its 52-week high and 0.92% above its 52-week low.

The advertising agency has a market cap of $22.04 billion and enterprise value of $28.81 billion.

Fisher with 0.18% of outstanding shares is the largest investor among the gurus followed by Simons with 0.05% and Scott Black (Trades, Portfolio) with 0.02%.

Over the last five years, EPS of Ross Stores Inc. (ROST) has grown 14%.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 25.5% for $63.82 per shares. The P/E ratio is 21.07. The stock price has been as high as $69.81 and as low as $52.82 in the past 52 weeks; it is 8.55% below its 52-week high and 20.79% above its 52-week low.

The company which owns home fashion chains in the U.S., has a market cap of $24.62 billion and enterprise value of $23.86 billion.

PRIMECAP Management (Trades, Portfolio) with 3.78% of outstanding shares is the largest investor among the gurus followed by Pioneer Investments (Trades, Portfolio) with 0.83%, David Rolfe (Trades, Portfolio) and Simons with 0.41%.

McKesson Corp.’s (MCK) EPS has grown 30% over the past five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 73.1% at $135.62 per share. The P/E ratio is 6.94. The stock price has been as high as $169.29 and as low as $114.53 in the past 52 weeks; it is 10.58% below its 52-week high and 32.17% above its 52-week low.

The provider of medicines and pharmaceutical supplies has a market cap of $31.83 billion and enterprise value of $37.65 billion operates in the medical distribution industry.

Vanguard Health Care Fund (Trades, Portfolio) with 3.81% of outstanding shares is the largest investor among the gurus followed by Richard Pzena (Trades, Portfolio) with 1%, Larry Robbins (Trades, Portfolio) with 0.48%, Simons with 0.48% and Charles Brandes (Trades, Portfolio) with 0.47%.

Over the last five years, EPS of Infosys Ltd. ADR (INFY) has grown 12%.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 22.4% at $15.01 per share. The P/E ratio is 27.33. The stock price has been as high as $16.15 and as low as $13.42 in the past 52 weeks; it is 7.03% below its 52-week high and 11.85% above its 52-week low.

The information technology company has a market cap of $33 billion and enterprise value of $27.33 billion.

The company’s largest shareholder among the gurus is Fisher with 0.98% of outstanding shares followed by Grantham with 0.51% and Donald Yacktman (Trades, Portfolio) with 0.17%.

The EPS of Aflac Inc. (AFL) has grown 6% over the past five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 18.3% at $83.94 per share. The P/E ratio is 12.70. The stock price has been as high as $85.24 and as low as $66.50 in the past 52 weeks; it is 1.37% below its 52-week high and 26.42% above its 52-week low.

The insurance and general business holding company has a market cap of $33.23 billion and enterprise value of $34.21 billion.

Bill Nygren (Trades, Portfolio) with 1.24% of outstanding shares is the largest investor among the gurus followed by Andreas Halvorsen (Trades, Portfolio) with 0.54%, Grantham with 0.09%, Simons with 0.08% and Jeff Auxier (Trades, Portfolio) with 0.02%.

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