6 Undervalued Stocks With Growing Earnings

Usana, Eagle Bancorp among companies increasing their profitability

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Dec 13, 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 undervalued companies have grown their EPS over a five-year period.

The EPS of Super Micro Computer Inc. (SMCI, Financial) have grown 23% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 4% at $21.85 per share. The price-earnings (P/E) ratio is 16.27. The stock price has been as high as $31.75 and as low as $17.70 in the last 52 weeks; it is currently 31.18% below its 52-week high and 23.45% above its 52-week low.

The information tecnology company has a market cap of $1.06 billion and an enterprise value of $1.11 billion.

The company’s largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 2.55% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.67% and Richard Snow (Trades, Portfolio) with 0.48%.

NIC Inc.'s (EGOV, Financial) EPS has grown 19% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 12% at $17.80 per share. The P/E ratio is 21.72. The stock price has been as high as $25.90 and as low as $15.45 in the last 52 weeks; it is currently 31.27% below its 52-week high and 15.21% above its 52-week low.

The software application company has a market cap of $1.18 billion and enterprise value of $1.03 billion.Â

With 1.25% of outstanding shares, Simons is the company's largest guru shareholder, followed by Joel Greenblatt (Trades, Portfolio) with 0.57% and Paul Tudor Jones (Trades, Portfolio) with 0.07%.

The EPS of Gentherm Inc. (THRM, Financial) has grown 100% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 36% at $33 per share. The P/E ratio is 18.17. The stock price has been as high as $40.80 and as low as $29.50 in the last 52 weeks; it is currently 19.12% below its 52-week high and 11.86% above its 52-week low.

The auto parts manufacturer has a market cap of $1.21 billion and an enterprise value of $1.21billion.

The company’s largest guru shareholder is Mairs and Power (Trades, Portfolio) with 1.91% of outstanding shares, followed by Snow with 0.67%.

Heartland Financial USA Inc.'s (HTLF, Financial) EPS has grown 15% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 30% at $50.15 per share. The P/E ratio is 17. The stock price has been as high as $52.65 and as low as $41.63 in the last 52 weeks; it is currently 11.08% below its 52-week high and 19.12% above its 52-week low.

The bank holding company has a market cap of $1.5 billion and an enterprise value of $1.45 billion.

With 0.6% of outstanding shares, Simons is the company's largest shareholder among the gurus, followed by Royce with 0.08%.

The EPS of Usana Health Sciences Inc. (USNA, Financial) has grown 18% per year over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 9% at $70.55 per share. The P/E ratio is 19.44. The stock price has been as high as $72.80 and as low as $52.55 in the last 52 weeks; it is currently 3.09% below its 52-week high and 34.25% above its 52-week low.

The manufacturer of health products has a market cap of $1.69 billion and an enterprise value of $1.5 billion.

The company’s largest guru shareholder is Simons with 8% of outstanding shares, followed by Jones with 0.05%.

Eagle Bancorp Inc.'s (EGBN, Financial) EPS has grown 21% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 38% at $55.45 per share. The P/E ratio is 17.20. The stock price has been as high as $69.80 and as low as $49.53 in the last 52 weeks; it is currently 20.56% below its 52-week high and 20.02% above its 52-week low.

The bank has a market cap of $1.9 billion and an enterprise value $1.87 billion.

Ken Fisher (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.22% of outstanding shares, followed by Simons with 0.08%.

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