6 Industrial Stocks Boosting Earnings

McGrath on the list

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Jun 11, 2020
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The following companies have grown their earnings per share over a three-year period. According to the GuruFocus discounted cash flow calculator as of June 11, some of them also trade with a margin of safety.

McGrath

McGrath RentCorp.'s (MGRC) earnings per share have grown 24.10% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 5.30% margin of safety at $59.48 per share. The price-earnings ratio is 14.91. The share price has been as high as $83.95 and as low as $44.32 in the last 52 weeks; it is currently 29.15% below its 52-week high and 34.21% above its 52-week low.

The rental company has a market cap of $1.44 billion and an enterprise value of $1.73 billion.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.47% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.96% and Mario Gabelli (Trades, Portfolio)’s GAMCO Investors with 0.10%.

Lennox

The earnings per share of Lennox International Inc. (LII) have grown 21.50% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 12.31% margin of safety at $224.43 per share. The price-earnings ratio is 24.94. The share price has been as high as $298.49 and as low as $163.40 in the last 52 weeks; it is currently 24.81% below its 52-week high and 37.35% above its 52-week low.

The distributor of commercial ventilation and related systems has a market cap of $8.58 billion and an enterprise value of $10.17 billion.

The company's largest guru shareholder is Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.70% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.04% and Ray Dalio (Trades, Portfolio)’s Bridgewater Associates with 0.02%.

Kansas City Southern

Kansas City Southern's (KSU) earnings per share have grown 7.60% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 7.51% margin of safety at $157.20 per share. The price-earnings ratio is $26.33. The share price has been as high as $178.59 and as low as $92.86 in the last 52 weeks; it is currently 11.98% below its 52-week high and 69.29% above its 52-week low.

The Class I railroad has a market cap of $14.94 billion and an enterprise value of $18.47 billion.

The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.69% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.56% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.09%.

Hexcel

The earnings per share of Hexcel Corp. (HXL) have grown 46.59% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 46.59% margin of safety at $43.89 per share. The price-earnings ratio of 13.95 is outperforming 60% of competitors. The share price has been as high as $87 and as low as $24.54 in the last 52 weeks; it is currently 49.55% below its 52-week high and 78.85% above its 52-week low.

The developer of composites used in the aerospace market has a market cap of $3.66 billion and an enterprise value of $4.73 billion.

The company's largest guru shareholder is Simons’ firm with 0.44% of outstanding shares, followed by Tom Gayner (Trades, Portfolio) with 0.23% and GAMCO Investors with 0.16%.

Insperity

Insperity Inc.'s (NSP) earnings per share have grown 50.20% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 40.13% margin of safety at $58.12 per share. The price-earnings ratio is 17.04. The share price has been as high as $144.92 and as low as $22.59 in the last 52 weeks; it is currently 59.90% below its 52-week high and 157.28% above its 52-week low.

The provider of human resources solutions has a market cap of $2.25 billion and an enterprise value of $2.26 billion.

With 1.14% of outstanding shares, Larry Robbins (Trades, Portfolio)’ Glenview Capital Management is the company's largest guru shareholder, followed by Point72 Asset Management with 0.13%.

Disclosure: I do not own any stocks mentioned.

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