6 Undervalued Stocks Boosting Earnings

Home BancShares tops the list

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Apr 13, 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 calculator, the following undervalued companies have grown their earnings over a five-year period.

The earnings per share of Home BancShares Inc. (HOMB, Financial) have grown 15% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 9.6% margin of safety at $22.91 per share. The price-earnings ratio is 25.71. The stock price has been as high as $26.53 and as low as $20.82 in the last 52 weeks; it is currently 13.64% below its 52-week high and 10.04% above its 52-week low.

The financial services company has a market cap of $3.98 billion and an enterprise value of $5.01 billion.

The company’s largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.01% of outstanding shares.

Enstar Group Ltd.'s (ESGR, Financial) earnings per share have grown 7% 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 18.2% margin of safety at $211.50 per share. The price-earnings ratio is 13.28. The stock price has been as high as $237.30 and as low as $180.50 in the last 52 weeks; it is currently 10.87% below its 52-week high and 17.17% above its 52-week low.

The diversified insurance company has a market cap of $4.11 billion and enterprise value of $4.11 billion.

With 7.45% of outstanding shares,Ă‚ Chuck Akre (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Hotchkis & Wiley with 2.68% and Diamond Hill Capital (Trades, Portfolio) with 1.35%.

The earnings per share of Synnex Corp. (SNX, Financial) have grown 17% 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 9.5% margin of safety at $104.06 per share. The price-earnings ratio is 15.83. The stock price has been as high as $141.94 and as low as $93.87 in the last 52 weeks; it is currently 26.69% below its 52-week high and 10.86% above its 52-week low.

The business process services company has a market cap of $4.17 billion and an enterprise value of $5.61 billion.

The company’s largest guru shareholder is Jim Simons (Trades, Portfolio) with 0.23% of outstanding shares, followed by Pioneer Investments with 0.07% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Genesee & Wyoming Inc.'s (GWR, Financial) earnings per share have grown 28% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 56.7% margin of safety at $70.63 per share. The price-earnings ratio is 8.05. The stock price has been as high as $84.40 and as low as $61.44 in the last 52 weeks; it is currently 16.32% below its 52-week high and 14.96% above its 52-week low.

The company, whick owns and leases short line and regional freight railroads worldwide, has a market cap of $4.37 billion and enterprise value of $6.94 billion.

With 1.94% of outstanding shares,Ă‚ Manning & Napier Advisors is the company's largest guru shareholder, followed by Simons with 0.04% and Chuck Royce (Trades, Portfolio) with 0.02%.

The earnings per share of Bbva Banco Frances,S.A. ADR (BFR, Financial) have grown 34% 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 14.4% margin of safety at $22.97 per share. The price-earnings ratio is 24.36. The stock price has been as high as $27.45 and as low as $14.55 in the last 52 weeks; it is currently 16.32% below its 52-week high and 57.87% above its 52-week low.

The banking services provider has a market cap of $4.74 billion and an enterprise value of $3.45 billion.

The company’s largest shareholder among the gurus is Simons with 0.08% of outstanding shares, followed by Pioneer Investments with 0.01% and Ken Fisher (Trades, Portfolio) with 0.01%.

Leggett & Platt Inc.'s (LEG, Financial) earnings per share have grown 13% annually 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 $44.41 per share. The price-earnings ratio is 20.85. The stock price has been as high as $54.97 and as low as $41.25 in the last 52 weeks; it is currently 19.21% below its 52-week high and 7.66% above its 52-week low.

The company, which designs and produces engineered components, has a market cap of $5.85 billion and enterprise value of $6.57 billion.

With 0.55% of outstanding shares, Simons is the company's largest shareholder among the gurus, followed by Columbia Wanger (Trades, Portfolio) with 0.31% and Royce with 0.08%.

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