6 Undervalued Stocks Growing Earnings

Cracker Barrel, Molina Healthcare among companies increasing profitability

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Sep 27, 2017
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Companies growing their 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.

Cracker Barrel Old Country Store Inc.'s (CBRL, Financial) EPS grew 15% per year 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 4.3% at $147.73. The price-earnings (P/E) ratio is 17.63; the stock price has been as high as $175.04 and as low as $130.15 in the last 52 weeks. It is currently trading 15.60% below its 52-week high and 13.51% above its 52-week low.

The restaurant chain has a market cap of $3.55 billion and enterprise value of $3.79 billion.

The company’s largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 0.24% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.18% and Mario Gabelli (Trades, Portfolio) with 0.02%.

Molina Healthcare Inc.'s (MOH, Financial) EPS grew 12% per year over the last five years.

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According to the DCF calculator, the stock is undervalued at $64.54. The forward P/E ratio is 17.39; the stock price has been as high as $72.79 and as low as $42.56 in the last 52 weeks. It is currently trading 11.33% below its 52-week high and 51.64% above its 52-week low.

The health care plans company has a market cap of $3.69 billion and enterprise value of $344.11 million.

With 2.59% of outstanding shares,Ă‚ Andreas Halvorsen (Trades, Portfolio) is the company's largest guru shareholder, followed by Jana Partners (Trades, Portfolio) with 2.44%, Jim Simons (Trades, Portfolio) with 1.46%, Steven Cohen (Trades, Portfolio) with 0.27% and Richard Snow (Trades, Portfolio) with 0.13%.

The EPS of Mednax Inc. (MD, Financial) grew 11% per year 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 16.8% at $42.77. The P/E ratio is 13.60; the stock price has been as high as $72.13 and as low as $40.78 in the last 52 weeks. It is currently trading 40.70% below its 52-week high and 4.88% above its 52-week low.

The medical care company has a market cap of $4 billion and enterprise value of $5.74 billion.

The company’s largest shareholder among the gurus is Cohen with 0.08% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 0.06% and  David Dreman (Trades, Portfolio).

Grand Canyon Education Inc.'s (LOPE, Financial) EPS grew 23% per year 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 15.9% at $85.97. The P/E ratio is 23.84; the stock price has been as high as $87.48 and as low as $39.68 in the last 52 weeks. It is currently trading 1.73% below its 52-week high and 116.66% above its 52-week low.

The for-profit educational company has a market cap of $4.14 billion and enterprise value of $4.07 billion.

With 1.85% of outstanding shares,Ă‚ Simons is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.11%, Lee Ainslie (Trades, Portfolio) with 0.1%, Ken Heebner (Trades, Portfolio) with 0.08% and Greenblatt with 0.06%.

The EPS of Amerco Inc. (UHAL, Financial) grew 17% per year 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 31.4% at $376.56. The P/E ratio is 19.59; the stock price has been as high as $398.94 and as low as $307.80 in the last 52 weeks. It is currently trading 5.61% below its 52-week high and 22.34% above its 52-week low.

The rental and leasing services company has a market cap of $7.38 billion and enterprise value of $7.85 billion.

The company’s largest shareholder among the gurus is David Abrams (Trades, Portfolio) with 2.01% of outstanding shares, followed by David Einhorn (Trades, Portfolio) with 1.12% and Robert Bruce (Trades, Portfolio) with 0.98%.

Lululemon Athletica Inc.'s (LULU, Financial) EPS grew 8% per year 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 3.1% at $57.39. The P/E ratio is 27.36; the stock price has been as high as $72.70 and as low as $47.26 in the last 52 weeks. It is currently trading 21.06% below its 52-week high and 21.43% above its 52-week low.

The athletic apparel retailer has a market cap of $7.77 billion and enterprise value of $6.99 billion.

Manning & Napier Advisors Inc. is the company's largest shareholder among the gurus with 2.8% of outstanding shares, followed by Simons with 0.33%, Pioneer Investments with 0.1%, Cohen with 0.09% and Louis Moore Bacon (Trades, Portfolio) with 0.09%.

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