6 Undervalued Stocks With Positive Earnings Growth Estimates

Fiat Chrysler, Carriage Services make the list

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Nov 11, 2018
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According to the GuruFocus All-in-One Screener, the following stocks are trading at a discount and have positive three- to five-year future earnings estimates.

Carriage Services Inc. (CSV) is trading around $17 per share. The discounted cash flow calculator gives the stock a fair value of $58.64 per share, suggesting it has a 71% margin of safety at current prices.

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The provider of death care services has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have increased 24.70% over the last five years. Analysts project a three-year to five-year earnings growth rate of 15%. The return on equity of 17.26% and return on assets of 4.01% are outperforming 50% of companies in the Global Personal Services industry.

Jim Simons (Trades, Portfolio) is the company's largest guru shareholder with 6.01% of outstanding shares followed by Paul Tudor Jones (Trades, Portfolio) with 0.05%.

Fiat Chrysler Automobiles NV (FCAU) is trading around $16.60 per share. The discounted cash flow calculator gives the stock a fair value of $24.92 per share, suggesting it has a 33.4% margin of safety at current prices.

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GuruFocus gave the passenger vehicles maker a profitability and growth rating of 7 out of 10. Its earnings per share have grown 83.30% over the past decade. Analysts project a three-year to five-year earnings growth rate of 5.41%. While the return on equity of 14.44% is outperforming the sector, the return on assets of 3.21% is underperforming 54% of companies in the Global Auto Manufacturers industry.

Chase Coleman (Trades, Portfolio) is the company's largest shareholder among the gurus with 1.33% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 1.25%, Pioneer Investments (Trades, Portfolio) with 0.86% and Mohnish Pabrai (Trades, Portfolio) with 0.67%.

Grupo Aeroportuario del Sureste (ASRMF) is trading around $17.85 per share. The discounted cash flow calculator gives the stock a fair value of $26.76 per share, suggesting it has a 33.3% margin of safety.

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The company which operates nine airports in southeast Mexico under its government-granted concession, has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 21.40% over the past decade. Analysts project a three-year to five-year earnings growth rate of 6.33%. The return on equity of 21.95% and return on assets of 10.80% are outperforming 90% of companies in the Global Airports and Air Services industry.

Sally Beauty Holdings Inc. (SBH) is trading around $21.75 per share. The discounted cash flow calculator gives the stock a fair value of $49.63 per share, suggesting it has a 54.5% margin of safety.

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The retailer of professional beauty products has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 3.40% over the last 12 months. Analysts project a three-year to five-year earnings growth rate of 3%. The return on assets of 11.30% is outperforming 87% of companies in the Global Specialty Retail industry.

Mario Gabelli (Trades, Portfolio) is the company's largest guru shareholder with 0.73% of outstanding shares, Chuck Royce (Trades, Portfolio) with 0.43%, Lee Ainslie (Trades, Portfolio) with 0.16% and Jeff Auxier (Trades, Portfolio) with 0.07%.

Gentex Corp. (GNTX) is trading around $22 per share. The discounted cash flow calculator gives the stock a fair value of $44.21 per share, suggesting it has a 50.2% margin of safety.

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The company provides debt recovery solutions. It has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 17.90% over the last five years. Analysts project a three-year to five-year earnings growth rate of 9.91%. The return on equity of 23.55% and the return on assets of 20.56% are outperforming 87% of companies in the Global Auto Parts industry.

With 1.13% of outstanding shares, Royce is the company's largest guru shareholder followed by Simons with 0.47%, First Pacific Advisors (Trades, Portfolio) with 0.24%, Joel Greenblatt (Trades, Portfolio) with 0.14% and FPA Capital Fund (Trades, Portfolio) with 0.13%.

United Natural Foods Inc. (UNFI) is trading around $24 per share. The discounted cash flow calculator gives the stock a fair value of $48.40 per share, suggesting it has a 51% margin of safety.

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The distributor of natural and organicfood has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 5.80% over the last five years. Analysts project a three-year to five-year earnings growth rate of 5%. The return on equity of 9.41% and return on assets of 5.51% are outperforming 51% of companies in the Global Food Distribution industry.

Gabelli is the largest guru shareholder of the company with 0.78% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.78%, Royce with 0.6%, Barrow, Hanley, Mewhinney & Strauss with 0.4% and John Hussman (Trades, Portfolio) with 0.15%.

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