5 Bargain Stocks Boosting Earnings

Undervalued stocks with raising earnings per share

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Jun 11, 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 discounted cash flow calculator, the following undervalued companies have grown their earnings over a five-year period.

The earnings per share of Leggett & Platt Inc. (LEG) has 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 17.9% margin of safety at $43.64 per share. The price-earnings ratio is 20.98. The stock price has been as high as $53.96 and as low as $39.57 in the last 52 weeks; it is currently 19.13% below its 52-week high and 10.29% above its 52-week low.

The company designs engineered components and products for homes and automobiles. It has a market cap of $5.73 billion and an enterprise value of $6.63 billion.

The company’s largest shareholder among the gurus is Columbia Wanger (Trades, Portfolio) with 0.31% of outstanding shares followed by Jim Simons (Trades, Portfolio) with 0.21% and Joel Greenblatt (Trades, Portfolio) with 0.07%.

Genpact Ltd.'s (G) earnings per share has 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 12.3% margin of safety at $30.66 per share. The price-earnings ratio is 21.59. The stock price has been as high as $34.79 and as low as $26.83 in the last 52 weeks; it is currently 11.87% below its 52-week high and 14.28% above its 52-week low.

The company provides finance and accounting service, together with insurance services and enterprise application services. It has a market cap of $5.84 billion and enterprise value of $6.73 billion.

Richard Pzena (Trades, Portfolio) with 1.58% of outstanding shares is the largest investor among the gurus followed by Ken Fisher (Trades, Portfolio) with 0.24%, Simons with 0.23% and Third Avenue Management (Trades, Portfolio) with 0.09%.

The earnings per share of Gildan Activewear Inc. Class A (GIL) has grown 22% 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 12.7% margin of safety at $28.93 per share. The price-earnings ratio is 18.72. The stock price has been as high as $34.19 and as low as $3.73 in the last 52 weeks; it is currently 15.38% below its 52-week high and 3.73% above its 52-week low.

The company manufactures basic apparel including T-shirts, socks and underwear. It has a market cap of $6.14 billion and an enterprise value of $6.86 billion.

The company’s largest shareholder among the gurus is Sarah Ketterer (Trades, Portfolio) with 6.82% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.7% and Private Capital (Trades, Portfolio) with 0.34%.

Service Corp. International's (SCI) earnings per share has grown 26% 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 margin of safety of 12.8% at $36.66 per share. The price-earnings ratio is 15.53. The stock price has been as high as $40.28 and as low as $31.53 in the last 52 weeks; it is currently 8.99% below its 52-week high and 16.27% above its 52-week low.

The company provides funeral and cemetery services. It has a market cap of $6.72 billion and an enterprise value of $9.91 billion.

Simons with 0.4% of outstanding shares is the largest investor among the gurus followed by Jeremy Grantham (Trades, Portfolio) with 0.07% and Paul Tudor Jones (Trades, Portfolio) with 0.03%.

The earnings per share of Grupo Financiero Galicia SA ADR (GGAL) has 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 41.5% margin of safety at $49.98 per share. The price-earnings ratio is 19.02. The stock price has been as high as $73.45 and as low as $36.09 in the last 52 weeks; it is currently 31.95% below its 52-week high and 38.49% above its 52-week low.

The company provides general banking services, insurance and other services. It has a market cap of $6.79 billion and an enterprise value of $4.09 billion.

The company’s largest shareholder among the gurus is Daniel Loeb (Trades, Portfolio) with 1.25% of outstanding shares followed by Manning & Napier Advisors, Inc with 0.08% and Pioneer Investments (Trades, Portfolio) with 0.06%.

Amerco Inc.'s (UHAL) earnings per share has grown 19% 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 69.8% margin of safety at $346.68 per share. The price-earnings ratio is 20.85. The stock price has been as high as $400.99 and as low as $317.42 in the last 52 weeks; it is currently 13.54% below its 52-week high and 9.22% above its 52-week low.

The company provides rental trucks to household movers. It has a market cap of $6.8 billion and an enterprise value of $7.62 billion.

David Abrams (Trades, Portfolio) with 2.51% of outstanding shares is the largest investor among the gurus followed by Barrow, Hanley, Mewhinney & Strauss with 2.07% and Robert Bruce (Trades, Portfolio) with 0.95%.

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