6 Cheap Stocks Boosting Earnings

Companies increasing their profitability

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Jan 23, 2018
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Companies growing their earnings per share 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 earnings over a five-year period.

The earnings per share of Tractor Supply Co. (TSCO, Financial) have grown 17% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 14.1% margin of safety at $82.39 per share. The price-earnings ratio is 24.45. The stock price has been as high as $82.68 and as low as $49.87 in the last 52 weeks; it is currently 0.06% below its 52-week high and 65.21% above its 52-week low.

The farm and ranch retail chain has a market cap of $10.35 billion and an enterprise value of $10.82 billion.

The company’s largest shareholder among the gurus is David Rolfe (Trades, Portfolio) with 2.2% of outstanding shares, followed by Columbia Wanger (Trades, Portfolio) with 0.23%, Mario Gabelli (Trades, Portfolio) with 0.09% and John Rogers (Trades, Portfolio) with 0.07%.

L Brands Inc.'s (LB, Financial) earnings per share have grown 11% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 18.3% margin of safety at $50.69 per share. The price-earnings ratio is 15.45. The stock price has been as high as $63.10 and as low as $35 in the last 52 weeks; it is currently 19.67% below its 52-week high and 44.83% above its 52-week low.

The company, which owns brands like Victoria's Secret, Bath & Body Works and Henri Bendel, has a market cap of $14.31 billion and an enterprise value of $19.36 billion.

With 6.85% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 1.47% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.33%.

The EPS of CGI Group Inc.Ă‚ (GIB) have grown 43% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 18.4% margin of safety at $54.06 per share. The price-earnings ratio is 19.81. The stock price has been as high as $54.99 and as low as $45.81 in the last 52 weeks; it is currently 1.69% below its 52-week high and 18.01% above its 52-week low.

The information technology services provider has a market cap of $15.51 billion and an enterprise value of $16.47billion.

The company’s largest shareholder among the gurus is Ray Dalio (Trades, Portfolio) with 0.02% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.01% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

Skyworks Solutions Inc.'s (SWKS, Financial) earnings per share have grown 43% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 35% margin of safety at $99.45 per share. The price-earnings ratio is 18.34. The stock price has been as high as $117.65 and as low as $87.72 in the last 52 weeks; it is currently 15.68% below its 52-week high and 17.13% above its 52-week low.

The semiconductor manufacturer has a market cap of $18.17 billion and an enterprise value of $16.56 billion.

The company's largest guru shareholder is Manning & Napier Advisors Inc. with 1.2% of outstanding shares, followed by Richard Snow (Trades, Portfolio) with 0.18% and Greenblatt with 0.16%.

The EPS of Credicorp Ltd. (BAP, Financial) have grown 15% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 10.6% margin of safety at $229.99 per share. The price-earnings ratio is 17.93. The stock price has been as high as $230.34 and as low as $150.71 in the last 52 weeks; it is currently 52.60% above its 52-week low.

The Peruvian financial services company has a market cap of $21.71 billion and an enterprise value of $18.11 billion.

The company’s largest shareholder among the gurus is Ken Fisher (Trades, Portfolio) with 1.33% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 0.28%, Grantham with 0.27% and Jim Simons (Trades, Portfolio) with 0.13%.

AutoZone Inc.'s (AZO, Financial) earnings per share have grown 14% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 33% margin of safety at $793.80 per share. The price-earnings ratio is 26.44. The stock price has been as high as $797.89 and as low as $491.13 in the last 52 weeks; it is currently 0.51% below its 52-week high and 61.63% above its 52-week low.

The auto parts retailer has a market cap of $21.71 billion and an enterprise value of $26.44 billion.

With 0.38% of outstanding shares, Manning & Napier Advisors is the company's largest guru shareholder, followed by Tweedy Browne (Trades, Portfolio) with 0.37% and Simons with 0.21%.

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