5 Companies Raising Earnings

Gilead Sciences on the list

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Jun 13, 2019
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According to the GuruFocus All-in-One Screener, the following companies are trading at a discount and have positive three- to five-year future earnings estimates.

Shares of United Parcel Service Inc. (UPS) are trading around $101.75 per share. The discounted cash flow calculator gives the stock a fair value of $72.45 per share, suggesting it is overpriced by 38%.

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The parcel delivery company has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 6.4% over the last five years. Analysts project a three-year to five-year earnings growth rate of 12.08%. The return on equity of 171.86% and return on assets of 9.56% are outperforming 91% of companies in the Integrated Shipping and Logistics industry.

Bill Gates' (Trades, Portfolio) foundation trust is the company's largest guru shareholder with 0.53% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.42% and Pioneer Investments (Trades, Portfolio) with 0.35%.

Gilead Sciences Inc. (GILD) is trading around $66.12 per share. The DCF calculator gives the stock a fair value of $128.96 per share, suggesting it has a 48% margin of safety.

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The company, which develops therapies to treat life-threatening infectious diseases, has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 5.20% over the last five years. Analysts project a three-year to five-year earnings growth rate of 22.18%. The return on equity of 27.16% and return on assets of 9.16% are outperforming 79% of companies in the Drug Manufacturers - Major industry.

Dodge & Cox is the company's largest guru shareholder with 1.34% of outstanding shares, followed by Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.64% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%.

Itau Unibanco Holding SA (ITUB) is trading around $8.97 per share. The DCF calculator gives the stock a fair value of $10.88 per share, suggesting it has a 17% margin of safety.

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The Brazilian bank has a GuruFocus profitability and growth rating of 4 out of 10. Its earnings per share have grown 6.70% over the past decade. Analysts project a three-year to five-year earnings growth rate of 8.90%. The return on equity of 17.13% and return on assets of 1.68% are outperforming 79% of companies in the Banks - Regional - Latin America industry.

With 0.46% of outstanding shares, Fisher is the company's largest guru shareholder, followed by Ken Heebner (Trades, Portfolio) with 0.15% and Howard Marks (Trades, Portfolio) with 0.12%.

Ambev SA (ABEV) is trading around $4.56 per share. The DCF calculator gives the stock a fair value of $2.13 per share, suggesting it is overpriced by 116%.

With a market cap of $71.55 billion, the beer producer has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have fallen 5.20% the last five years. Analysts project a three-year to five-year earnings growth rate of 9.91%. The return on equity of 20.27% and return on assets of 12.14% are outperforming 75% of companies in the Beverages - Brewers industry.

Fisher is the company's largest guru shareholder with 0.17% of outstanding shares, followed by Simons with 0.09% and Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.01%.

BlackRock Inc. (BLK) is trading around $448 per share. The DCF calculator gives the stock a fair value of $611.71 per share, suggesting it is undervalued with a 27% margin of safety.

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The investment management services provider has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 10.80% over the last five years. Analysts project a three-year to five-year earnings growth rate of 8.14%. The return on equity of 13.32% and return on assets of 2.34% are outperforming 50% of companies in the Asset Management industry.

With 0.18% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Tom Gayner (Trades, Portfolio)’s Markel Corp with 0.13% and Fisher with 0.09%.

Disclosure: I do not own any stocks mentioned.

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