6 Retailers Growing Earnings

Ulta Beauty on the list

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Tiziano Frateschi
Apr 09, 2020
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Companies that are growing their earnings are often good investments. According to the GuruFocus discounted cash flow calculator as of April 9, the following undervalued companies have a high margin of safety and have grown their earnings per share over a five-year period through the end of 2019.

Zumiez

Zumiez Inc.'s (ZUMZ) earnings per share have grown 13.9% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 53.86% margin of safety at $20.85 per share. The price-earnings ratio is 7.96. The share price has been as high as $35.68 and as low as $13.13 in the last 52 weeks; it is currently 41.56% below its 52-week high and 58.8% above its 52-week low.

The Canadian logistics and transportation company has a market cap of $1.93 billion and an enterprise value of $3.5 billion.

The company's largest guru shareholder is

Jeremy Grantham (Trades, Portfolio)s GMO with 1.41% of outstanding shares, followed by Steven Cohen (Trades, Portfolio)s Point72 Asset Management with 0.87% and Lee Ainslie (Trades, Portfolio)s Maverick Capital with 0.74%.

Ulta Beauty

The earnings per share of Ulta Beauty Inc. (ULTA) have grown 26.6% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with an 39.88% margin of safety at $208.12 per share. The price-earnings ratio is 17.59. The share price has been as high as $368.83 and as low as $124.05 in the last 52 weeks; it is currently 43.57% below its 52-week high and 67.77% above its 52-week low.

The beauty retailer has a market cap of $11.81 billion and an enterprise value of $13.25 billion.

The company's largest guru shareholder is

PRIMECAP Management (Trades, Portfolio) with 0.53% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.47% and Jim Simons (Trades, Portfolio) Renaissance Technologies with 0.08%.

Tractor Supply

Tractor Supply Co.'s (TSCO) earnings per share have grown 11.8% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 20.28% margin of safety at $89.64 per share. The price-earnings ratio is 19.43. The share price has been as high as $114.25 and as low as $63.89 in the last 52 weeks; it is currently 21.54% below its 52-week high and 40.30% above its 52-week low.

The operator of retail farm and ranch stores has a market cap of $10.37 billion and an enterprise value of $13 billion.

The company's largest guru shareholder is

Pioneer Investments (Trades, Portfolio) with 1.79% of outstanding shares, followed by Simons firm with 0.58% and David Rolfe (Trades, Portfolio) with 0.52%.

Shoe Carnival

The earnings per share of Shoe Carnival Inc. (SCVL) have grown 17.50% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with an 35.75% margin of safety at $23.76 per share. The price-earnings ratio is 7.43. The share price has been as high as $40 and as low as $12.56 in the last 52 weeks; it is currently 40.60% below its 52-week high and 89.17% above its 52-week low.

The footwear retailer has a market cap of $331 million and an enterprise value of $506 million.

The company's largest guru shareholder is

Chuck Royce (Trades, Portfolio) with 7% of outstanding shares, followed by Grantham with 2.18% and Ainslie with 0.62%.

Sally Beauty Holdings

Sally Beauty Holdings Inc.'s (SBH) earnings per share have grown 9.10% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 73.24% margin of safety at $9.65 per share. The price-earnings ratio is 4.60. The share price has been as high as $21.98 and as low as $6.28 in the last 52 weeks; it is currently 56.10% below its 52-week high and 53.66% above its 52-week low.

The beauty products retailer has a market cap of $1.12 billion and an enterprise value of $3.19 billion.

With 0.54% of outstanding shares,

Mario Gabelli (Trades, Portfolio)s GAMCO Investors is the company's largest guru shareholder, followed by Cohens firm with 0.35% and Simons firm with 0.30%.

Ross Stores

The earnings per share of Ross Stores Inc. (ROST) have grown 17% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 16.02% margin of safety at $90.78 per share. The price-earnings ratio is 20.02. The share price has been as high as $124.16 and as low as $56.30 in the last 52 weeks; it is currently 26.88% below its 52-week high and 61.24% above its 52-week low.

The apparel and home fashion retailer has a market cap of $31.95 billion and an enterprise value of $34.08 billion.

Notable shareholders of the company are

PRIMECAP Management (Trades, Portfolio) with 3.19% of outstanding shares and Frank Sands (Trades, Portfolio) with 0.10%.

Disclosure: I do not own any stocks mentioned.

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You can read about me on www.theextraincome.info, which gives suggestions on position trading.