5 Companies With Positive Earnings Growth Estimates

O'Reilly Automotive makes the list

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Mar 21, 2019
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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.

NVR Inc. (NVR, Financial) is trading around $2,800 per share. The discounted cash flow calculator gives the stock a fair value of $5,549.61, suggesting it has a 50% margin of safety at current prices.

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The U.S.-based homebuilder has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 27.70% over the last five years. Analysts project a three-year to five-year earnings growth rate of 13.66%. The return on equity of 48.78% and return on assets of 26.40% are outperforming 98% of companies in the Global Residential Construction industry.

Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder with 2.99% of outstanding shares, followed by the Smead Value Fund (Trades, Portfolio) with 0.75%, Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.46% and Steven Cohen (Trades, Portfolio) with 0.10%.

Booking Holdings Inc. (BKNG, Financial) is trading around $1,744.43 per share. The DCF calculator gives the stock a fair value of $2,382.23, suggesting it has a 26% margin of safety at current prices.

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GuruFocus gave the online travel agency a profitability and growth rating of 9 out of 10. Its earnings per share have grown 29.30% over the past decade. Analysts project a three-year to five-year earnings growth rate of 10.35%. The return on equity of 39.11% and return on assets of 16.28% are outperforming 87% of companies in the Global Leisure industry.

Dodge & Cox is the company's largest shareholder among the gurus with 2.58% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 1.01%, Chase Coleman (Trades, Portfolio) with 1.0% and Steve Mandel (Trades, Portfolio) with 0.79%.

O'Reilly Automotive Inc. (ORLY, Financial) is trading around $375.48 per share. The DCF calculator gives the stock a fair value of $459.19, suggesting it is trading with a 18.51% margin of safety.

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The company, which sells aftermarket automotive parts, has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 25.50% over the past decade. Analysts project a three-year to five-year earnings growth rate of 12.83%. The return on equity of 286.20% and return on assets of 17.03% are outperforming 94% of companies in the Global Specialty Retail industry.

With 2.41% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by David Abrams (Trades, Portfolio) with 1.10%, Pioneer Investments (Trades, Portfolio) with 1.07% and Mario Gabelli (Trades, Portfolio) with 0.32%.

The Home Depot Inc. (HD, Financial) is trading around $186.10 per share. The DCF calculator gives the stock a fair value of $277, suggesting it has a 34% margin of safety.

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The home improvement retailer, which sells building materials and garden products, has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 21.60% over the last 12 months. Analysts project a three-year to five-year earnings growth rate of 11.24%. The return on equity of 1,210.91% and return on assets of 24.54% are outperforming 97% of companies in the Global Home Improvement Stores industry.

Pioneer Investments is the company's largest guru shareholder with 0.56% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.41% and Spiros Segalas (Trades, Portfolio) with 0.22%.

Union Pacific Corp. (UNP, Financial) is trading around $161 per share. The discounted cash flow calculator gives the stock a fair value of $185.14, suggesting it has a 13.17% margin of safety.

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The railroad company has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 17% over the last five years. Analysts project a three-year to five-year earnings growth rate of 13.11%. The return on equity of 27.06% and return on assets of 10.19% are outperforming 99% of companies in the Global Railroads industry.

With 0.74% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 0.60%, Pioneer Investments with 0.41% and PRIMECAP Management (Trades, Portfolio) with 0.38%.

Disclosure: I do not own any stocks mentioned.

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