6 Bargain Stocks With Growing Earnings

Allegiant, Axis Capital among companies increasing their profitability

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Dec 21, 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 Grupo Aeroportuario del Centro Norte (OMAB) 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 31% at $41.77 per share. The price-earnings (P/E) ratio is 19.60. The stock price has been as high as $52.51 and as low as $30.05 in the last 52 weeks; it is currently 20.45% below its 52-week high and 39% above its 52-week low.

The company operates 13 airports in the central region of Mexico. It has a market cap of $2.11 billion and an enterprise value of $2.21 billion.

The company’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio) with 0.79% of outstanding shares.

Dorman Products Inc.'s (DORM) EPS has grown 14% 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 33% at $62.69 per share. The P/E ratio is 18.94. The stock price has been as high as $88.50 and as low as $61.32 in the last 52 weeks; it is currently 29.16% below its 52-week high and 2.23% above its 52-week low.

The company supplies replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks in the automotive aftermarket. It has a market cap of $2.11 billion and enterprise value of $2 billion.

Chuck Royce (Trades, Portfolio), with 1.9% of outstanding shares, is the largest investor among the gurus followed by Columbia Wanger (Trades, Portfolio) with 0.77% and Joel Greenblatt (Trades, Portfolio) with 0.14%.

The EPS of Cheesecake Factory Inc. (CAKE) has grown 10% 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 2.4% at $49.01 per share. The P/E ratio is 18.01. The stock price has been as high as $67.14 and as low as $38.34 in the last 52 weeks; it is currently 27% below its 52-week high and 27.83% above its 52-week low.

The company operates casual dining restaurants. It has a market cap of $2.24 billion and an enterprise value of $2.25 billion.

The company’s largest shareholder among the gurus is Ron Baron (Trades, Portfolio) with 2.02% of outstanding shares followed by Mario Gabelli (Trades, Portfolio) with 1.47%, Simons with 1.19% and Greenblatt with 0.59%.

Allegiant Travel Co.'s (ALGT) EPS has grown 40% 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 42% at $153.15 per share. The P/E ratio is 16.45. The stock price has been as high as $182.25 and as low as $111.54 in the last 52 weeks; it is currently 15.97% below its 52-week high and 37.30% above its 52-week low.

The provider of travel services in the U.S. has a market cap of $2.46 billion and an enterprise value of $3.05 billion.

Simons, with 6.34% of outstanding shares, is the largest investor among the gurus followed by Diamond Hill Capital (Trades, Portfolio) with 2.52%, First Pacific Advisors (Trades, Portfolio) with 2.31%, Royce with 1.23% and FPA Capital Fund (Trades, Portfolio) with 0.88%.

The EPS of Axis Capital Holdings Ltd. (AXS) has grown 92% 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 7.6% at $50.20 per share. The forward P/E ratio is 10.94. The stock price has been as high as $71.06 and as low as $49.61 in the last 52 weeks; it is currently 29.36% below its 52-week high and 1.19% above its 52-week low.

It is a global property and casualty insurance company with a market cap of $4.17 billion and an enterprise value of $4.58 billion.

The company’s largest shareholder among the gurus is Richard Pzena (Trades, Portfolio) with 5.5% of outstanding shares followed by NWQ Managers (Trades, Portfolio) with 1.48%, Simons with 1%, Donald Smith (Trades, Portfolio) with 0.49% and John Buckingham (Trades, Portfolio) with 0.11%.

Gentex Corp.'s (GNTX) EPS 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 26.6% at $20.48 per share. The P/E ratio is 16.39. The stock price has been as high as $22.12 and as low as $16.59 in the last 52 weeks; it is currently 7.41% below its 52-week high and 23.45% above its 52-week low.

The company designs and manufactures automatic-dimming rearview mirrors and electronics for the automotive industry. It has a market cap of $5.81 billion and an enterprise value of $5.07 billion.

Royce, with 1.62% of outstanding shares, is the largest investor among the gurus followed by Columbia Wanger (Trades, Portfolio) with 0.43% and Paul Singer (Trades, Portfolio) with 0.18%.

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