5 Undervalued Stocks With Growing Earnings

Old Dominion Freight tops the list

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Aug 01, 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 Old Dominion Freight Lines Inc. (ODFL, Financial) have grown 22% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 28% margin of safety at $142.15 per share. The price-earnings ratio is 20.4. The stock price has been as high as $164.10 and as low as $93.29 in the last 52 weeks; it is currently 13.27% below its 52-week high and 52.57% above its 52-week low.

With a market cap of $11.7 billion, it offers regional, national less-than-truckload services and value-added logistic services.

The company’s largest guru shareholder is Columbia Wanger (Trades, Portfolio) with 0.65% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.25%.

JB Hunt Transport Services Inc.'s (JBHT, Financial) earnings per share 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 18% margin of safety at $119.21 per share. The price-earnings ratio is 17.47. The stock price has been as high as $131.74 and as low as $88.91 in the last 52 weeks; it is currently 9.44% below its 52-week high and 34.19% above its 52-week low.

The company provides surface transportation and delivery services to customers and consumers. It has a market cap of $13.03 billion and an enterprise value of $14.02 billion.

With 0.57% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Columbia Wanger with 0.35% and Joel Greenblatt (Trades, Portfolio) with 0.03%.

The earnings per share of CarMax Inc.(KMX, 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% margin of safety at $73.19 per share. The price-earnings ratio is 19.29. The stock price has been as high as $81.67 and as low as $57.05 in the last 52 weeks; it is currently 10.32% below its 52-week high and 28.38% above its 52-week low.

The auto dealer has a market cap of $12.92 billion and an enterprise value of $26.1 billion.

The largest guru shareholder of the company is PRIMECAP Management with 7.45% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 6.77% and Chuck Akre (Trades, Portfolio) with 2.92%.

Westlake Chemical Corp.'s (WLK, Financial) earnings per share 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% margin of safety at $107.28 per share. The price-earnings ratio is 9.67. The stock price has been as high as $124.29 and as low as $68.60 in the last 52 weeks; it is currently 13.56% below its 52-week high and 56.62% above its 52-week low.

With a market cap of $12.53 billion, the company manufacturers chemicals, polymers and fabricated products. It has an enterprise value of $23.19 billion.

With 0.33% of outstanding shares,Ă‚ Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Heebner (Trades, Portfolio) with 0.28%, Greenblatt with 0.23% and Jim Simons (Trades, Portfolio) with 0.21%.

The earnings per share of Eastman Chemical Co. (EMN, Financial) have grown 16% 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 61% margin of safety at $101.6 per share. The price-earnings ratio is 10.17. The stock price has been as high as $112.45 and as low as $82.33 in the last 52 weeks; it is currently 9.56% below its 52-week high and 23.53% above its 52-week low.

The company produces and sells chemicals, plastics and fibers. It has a market cap of $14.51 billion and an enterprise value of $21.29 billion.

The company’s largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 0.82% of outstanding shares, followed by Leon Cooperman (Trades, Portfolio) with 0.24% and Pioneer Investments with 0.19%.

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