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Tiziano Frateschi
Tiziano Frateschi
Articles (1141)  | Author's Website |

7 Stocks With Rising Earnings and Margins of Safety

DCF Calculator selects undervalued stocks

Companies with growing earnings per share (EPS) are often good investments as they can return a solid profit to investors. According to the discount cash flow (DCF) calculator, the following are undervalued companies that have grown EPS over a five-year period.

The EPS of Signature Bank (SBNY) has grown 19% 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 39.6% for $134.49 per share. The price-earnings (P/E) ratio is 17.02, and the price has been as high as $164.23 and as low as $113.53 in the last 52 weeks. It is 17.90% below its 52-week high and 18.76% above its 52-week low.

Signature Bank, with a market cap of $57.34 billion, offers a wide variety of business and personal banking products and services. It also provides brokerage, asset management and insurance products and services.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.41% of outstanding shares followed by Ray Dalio (Trades, Portfolio) with 0.03%.

The EPS of The Middleby Corp. (MIDD) grew 22% 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 6.6% for $127.69 per share. The P/E ratio is 24.38, and the price has been as high as $150.87 and as low as $108.45 in the last 52 weeks. It is 14.99% below its 52-week high and 18.26% above its 52-week low.

Middleby has a market cap of $7.4 billion and through its subsidiaries is engaged in designing, manufacturing, marketing, distributing and servicing foodservice equipment, food preparation, cooking, baking, chilling and packaging equipment and premium kitchen equipment.

Ron Baron (Trades, Portfolio), with 2.39% of outstanding shares, is the largest investor among the gurus followed by Columbia Wanger (Trades, Portfolio) with 0.64%, John Griffin (Trades, Portfolio) with 0.4%, Joel Greenblatt (Trades, Portfolio) with 0.05% and Mario Gabelli (Trades, Portfolio) with 0.01%.

F5 Networks Inc. (FFIV)’s EPS grew 13% 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 30.8% for $118.33 per share. The P/E ratio is 19.65, and the price has been as high as $149.50 and as low as $114.45 in the last 52 weeks. It is 20.91% below its 52-week high and 3.31% above its 52-week low.

With a market cap of $7.52 billion, the company provides software-defined application services designed to ensure that applications delivered over Internet Protocol networks are available to any user, anywhere, anytime, on any device and on any network.

The company’s largest shareholder among the gurus is Simons with 2.59% of outstanding shares followed by Jeremy Grantham (Trades, Portfolio) with 0.21%, Greenblatt with 0.16%, John Hussman (Trades, Portfolio) with 0.06%, Lee Ainslie (Trades, Portfolio) with 0.03% and Ken Fisher (Trades, Portfolio) with 0.01%.

The EPS of Old Dominion Freight Lines Inc. (ODFL) grew 18% 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 11.7% for $96.10 per share. The P/E ratio is 25.13, and the price has been as high as $103.51 and as low as $66.33 in the last 52 weeks. It is 7.30% below its 52-week high and 44.66% above its 52-week low.

The company has a market cap of $7.97 billion and is a leading, less-than-truckload (LTL) union-free company providing premium service to all its customers. It offers regional, interregional and national LTL service and value-added logistics services.

Columbia Wanger (Trades, Portfolio), with 0.49% of outstanding shares, is the largest investor among the gurus followed by Greenblatt with 0.14%, Simons with 0.06%, Chuck Royce (Trades, Portfolio) with 0.04% and Fisher with 0.01%.

The EPS of Open Text Corp. (OTEX) grew 50% 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 73% for $32.50 per share. The P/E ratio is 7.68, and it has been as high as $35.21 and as low as $29.30 in the last 52 weeks. It is 7.78% below its 52-week high and 10.84% above its 52-week low.

Open Text has a market cap of $8.66 billion and develops and sells enterprise information management (EIM) software. The company offers EIM software that allows clients to archive, aggregate, retrieve, and search unstructured information for better management.

The company’s largest shareholder among the gurus is Richard Snow (Trades, Portfolio) with 0.32% of outstanding shares followed by Grantham with 0.09%, Simons with 0.09% and Greenblatt with 0.08%.

IPG Photonics Corp. (IPGP)’s EPS grew 16% 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 3.9% for $163 per share. The P/E ratio is 27.39, and the price has been as high as $168.93 and as low as $80.52 in the last 52 weeks. It is 3.24% below its 52-week high and 102.99% above its 52-week low.

IPG Photonics has a market cap of $8.75 billion and is a developer and manufacturer of fiber lasers and amplifiers for diverse applications in numerous markets. The company sells its products globally to OEMs, system integrators and end users in a wide range of diverse markets.

Columbia Wanger, with 1.18% of outstanding shares, is the largest investor among the gurus followed by Royce with 1.05%, Simons with 0.3%, Pioneer Investments (Trades, Portfolio) with 0.24%, Fisher with 0.07%, Robert Olstein (Trades, Portfolio) with 0.1% and Frank Sands (Trades, Portfolio) with 0.07%.

The EPS of Snap-on Inc. (SNA) grew 15% 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 27% for $154.53 per share. The P/E ratio is 15.98, and the price has been as high as $181.73 and as low as $145.17 in the last 52 weeks. It is 14.87% below its 52-week high and 6.56% above its 52-week low.

Snap-On has a market cap of $8.9 billion and manufactures and markets tools, equipment, diagnostics, repair information and systems solutions for professional users. The product range consists of hand and power tools, tool storage, fuel and engine systems and hand-held diagnostics.

The company’s largest shareholder among the gurus is John Rogers (Trades, Portfolio) with 1.11% of outstanding shares followed by Columbia Wanger with 0.7%, Mairs and Power (Trades, Portfolio) with 0.59%, Greenblatt with 0.14%, Olstein with 0.08%, Royce with 0.06%, Simons with 0.04%, Grantham with 0.03 and Pioneer Investments with 0.02%.

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

About the author:

Tiziano Frateschi
You can read about me on this blog: www.theextraincome.info

It gives suggestions on position trading.

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