6 Undervalued Companies Growing Earnings

Aircastle, Big Lots make the list

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Sep 20, 2018
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Companies growing their earnings per share are often good investments because 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 Group 1 Automotive Inc. (GPI, Financial) have grown 18% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 38% margin of safety at $73 per share. The price-earnings ratio is 6.59. The stock price has been as high as $84.47 and as low as $59.72 in the last 52 weeks; it is currently 13.85% below its 52-week high and 21.85% above its 52-week low.

The company, which sells new and used cars, has a market cap of $1.46 billion and an enterprise value of $4.26 billion.

The company’s largest shareholder among the gurus is David Abrams (Trades, Portfolio) with 2.3% of outstanding shares, followed by Hotchkis & Wiley with 1.09% and Barrow, Hanley, Mewhinney & Strauss with 0.33%.

Hisense Kelon Electrical Holdings Co. Ltd.'s (HISEF, Financial) earnings per share have grown 14% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 70% margin of safety at 78 cents per share. The price-earnings ratio is 5.28.

The company, which manufactures household electrical appliances in China, has a market cap of $1.49 billion and an enterprise value of $1.08 billion.

Universal Insurance Holdings Inc.'s (UVE, Financial) earnings per share have grown 29% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 40% margin of safety at $46.35 per share. The price-earnings ratio is 12.27. The stock price has been as high as $46.50 and as low as $20.25 in the last 52 weeks; it is currently 2.31% below its 52-week high and 124.32% above its 52-week low.

The company, which provides personal residential homeowners insurance products and services, has a market cap of $1.63 billion and enterprise value of $1.33 billion.

With 0.26% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.24%.

The earnings per share of Aircastle Ltd. (AYR, Financial) have grown 41% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 29% margin of safety at $21 per share. The price-earnings ratio is 7.52. The stock price has been as high as $25.30 and as low as $18.97 in the last 52 weeks; it is currently 16.92% below its 52-week high and 10.81% above its 52-week low.

The company, which sells commercial jets to airlines, has a market cap of $1.64 billion and an enterprise value of $5.7 billion.

The company’s largest shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio) with 3.06% of outstanding shares, followed by Donald Smith (Trades, Portfolio) with 0.7% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

Big Lots Inc.'s (BIG) earnings per share have grown 8% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 14% margin of safety at $41.01 per share. The price-earnings ratio is 10.61. The stock price has been as high as $64.42 and as low as $36.20 in the last 52 weeks; it is currently 36.36% below its 52-week high and 13.26% above its 52-week low.

The company, which operates discount retail stores, has a market cap of $1.64 billion and an enterprise value of $2.01 billion.

With 3.48% of outstanding shares, Richard Snow (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 1.27%, Lee Ainslie (Trades, Portfolio) with 0.05% and Steven Cohen (Trades, Portfolio) with 0.29%.

The earnings per share of China Lesso Group Holdings Ltd. (CUPHF, Financial) have grown 10% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 51% margin of safety at 58 cents per share. The price-earnings ratio is 5.

The Chinese manufacturer of building materials has a market cap of $1.66 billion and an enterprise value of $2.29 billion.

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