6 Stocks With Rising EPS

DCF calculator gives wide margins of safety

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Jun 01, 2017
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Companies with growing earnings per share (EPS) are often good investments as they can return a solid profit to investors. Here is a selection of the most undervalued companies that have five-year growing EPS, according to the DCF calculator.

The EPS of BofI Holding Inc. (BOFI) grew by 32% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 61% at $22.43. The price-earnings (P/E) ratio is 11.00; the price has been as high as $32.57 and as low as $46.70 in the last 52 weeks. It is 31.13% below its 52-week high and 46.70% above its 52-week low.

BofI Holding has a market cap of $1.42 billion and is a holding company. The company through its bank holding provides diversified financial services including consumer and business banking products through the branchless distribution channels and affinity partners.

Chuck Royce (Trades, Portfolio) with 0.55% of outstanding shares is the largest investor among the gurus followed by David Dreman (Trades, Portfolio) with 0.03% and Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Cal-Maine Foods Inc. (CALM)’s EPS grew by 36% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 465.2% at $40.65. The price has been as high as $46.71 and as low as $35.10 the last 52 weeks and is 12.97% below its 52-week high and 15.81% above its 52-week low.

Cal-Maine Foods has a market cap of $1.97 billion and is a producer and marketer of shell eggs in the U.S. The company's main business is the production, grading, packaging, marketing and distribution of shell eggs.

The company’s largest shareholder among the gurus is Royce with 1.89% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 0.63% and Jeff Auxier (Trades, Portfolio) with 0.01%.

The EPS of Urban Outfitters Inc. (URBN) grew by 7% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 18.8% at $19.07. The P/E ratio is 11.15; the price has been as high as $40.80 and as low as $18.55 the last 52 weeks. It is 53.26% below its 52-week high and 2.80% above its 52-week low.

Urban Outfitters has a market cap of $2.22 billion and is a lifestyle specialty retail company that operates under the Urban Outfitters, Anthropologie, Free People and The Vetri Family brands. It also operates a Wholesale segment under the Free People brand.

Jim Simons (Trades, Portfolio) with 1.77% of outstanding shares is the largest investor among the gurus followed by Joel Greenblatt (Trades, Portfolio) with 0.25%, Louis Moore Bacon (Trades, Portfolio) with 0.17%, Ray Dalio (Trades, Portfolio) with 0.1%, Royce with 0.05%, Murray Stahl (Trades, Portfolio) with 0.02% and Jones with 0.01%.

The EPS of AmTrust Financial Services Inc. (AFSI) grew by 17% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 70.2% at $14.00. The P/E ratio is 8.48; the price has been as high as $28.48 and as low as $11.80 in the last 52 weeks. It is 50.84% below its 52-week high and 18.64% above its 52-week low.

AmTrust Financial Services has a market cap of $2.4 billion and underwrites and provides property and casualty insurance products, including workers' compensation, commercial automobile, general liability and warranty coverage, in the U.S. and internationally.

The company’s largest shareholder among the gurus is RS Investment Management (Trades, Portfolio) with 0.56% of outstanding shares followed by Jones with 0.03%, Stahl with 0.03%, Dreman with 0.01% and Greenblatt with 0.01%.

The EPS of Allegiant Travel Co. (ALGT) grew by 40% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 55.1% at $145.95. The P/E ratio is 12.79; the price has been as high as $182.25 and as low as $121.70 in the last 52 weeks. It is 19.92% below its 52-week high and 19.93% above its 52-week low.

Allegiant Travel has a market cap of $2.43 billion and is a leisure travel company. It is engaged in transporting travelers in small cities to leisure destinations. The company provides air-related services and products along with air transportation.

Simons with 7.14% of outstanding shares is the largest investor among the gurus followed by PRIMECAP Management (Trades, Portfolio) with 0.25%, Ronald Muhlenkamp (Trades, Portfolio) with 0.09%, Royce with 0.07%, Cohen with 0.07%, Diamond Hill Capital (Trades, Portfolio) with 0.01% and Dreman with 0.01%.

Sally Beauty Holdings Inc. (SBH)’s EPS grew by 6% over the last five years.

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According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 55% at $17.72. The P/E ratio is 11.01; the price has been as high as $30.73 and as low as $17.26 in the last 52 weeks. It is 42.34% below its 52-week high and 2.67% above its 52-week low.

Sally Beauty Holdings has a market cap of $2.44 billion and is a specialty retailer and distributor of professional beauty supplies with operations in North America, South America and Europe.

The company’s largest shareholder among the gurus is Mario Gabelli (Trades, Portfolio) with 0.7% of outstanding shares followed by Simons with 0.4%, Dalio with 0.08% and Greenblatt with 0.06%.

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