6 Undervalued Stocks With Growing Earnings

Companies increasing their profitability

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Jan 04, 2018
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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 earnings over a five-year period.

The EPS of Grupo Aeroportuario del Sureste SAB (ASR, Financial) have grown 16% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 16% margin of safety at $190.13 per share. The price-earnings (P/E) ratio is 24.91. The stock price has been as high as $229.45 and as low as $131.72 in the last 52 weeks; it is currently 17.13% below its 52-week high and 44.34% above its 52-week low.

The Mexican airport operator has a market cap of $5.45 billion and an enterprise value of $6.29 billion.

The company’s largest shareholder among the gurus is Columbia Wanger (Trades, Portfolio) with 1.44% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 0.38% and Jim Simons (Trades, Portfolio) with 0.36%.

Hexcel Corp.'s (HXL, Financial) EPS have grown 15% 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 2.4% margin of safety at $61.67 per share. The P/E ratio is 22.26. The stock price has been as high as $63.93 and as low as $49.20 in the last 52 weeks; it is currently 3.54% below its 52-week high and 25.35% above its 52-week low.

The manufacturer of aerospace materials has a market cap of $5.54 billion and an enterprise value of $6.25 billion.

With 2.97% of outstanding shares, Lou Simpson (Trades, Portfolio) is the company's largest guru shareholder, followed by Robert Karr (Trades, Portfolio) with 0.8% and Tom Gayner (Trades, Portfolio) with 0.1%.

The EPS of Bank of the Ozarks Inc. (OZRK, Financial) have 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 40% margin of safety at $48.39 per share. The P/E ratio is 16.40. The stock price has been as high as $56.86 and as low as $40.15 in the last 52 weeks; it is currently 14.90% below its 52-week high and 20.52% above its 52-week low.

The bank holding company has a market cap of $6.2 billion and an enterprise value of $5.53 billion.

The company’s largest guru shareholder is Joel Greenblatt (Trades, Portfolio) with 0.01% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.01%.

Credit Acceptance Corp.'s (CACC, Financial) EPS have 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 41.1% margin of safety at $328.63 per share. The P/E ratio is 17.04. The stock price has been as high as $338.13 and as low as $182.50 in the last 52 weeks; it is currently 2.81% below its 52-week high and 80.07% above its 52-week low.

The consumer finance company has a market cap of $6.35 billion and an enterprise value of $9.3 billion.

Ruane Cunniff (Trades, Portfolio) is the company's largest investor among the gurus with 5.56% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.79% and Columbia Wanger with 0.51%.

The EPS of Gildan Activewear Inc. (GIL, Financial) have grown 19% annually over the past five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 7% margin of safety at $32.29 per share. The P/E ratio is 18.62. The stock price has been as high as $32.61 and as low as $23.55 in the last 52 weeks; it is currently 1.13% below its 52-week high and 37.11% above its 52-week low.

The apparel manufacturer has a market cap of $7.06 billion and an enterprise value of $7.59 billion.

The company’s largest guru shareholder is Sarah Ketterer (Trades, Portfolio) with 6.03% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.81% and Private Capital (Trades, Portfolio) with 0.36%.

Telecom Argentina SA's (TEO, Financial) EPS have 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 34.2% margin of safety at $37.26 per share. The P/E ratio is 19.05. The stock price has been as high as $40.19 and as low as $17.83 in the last 52 weeks; it is currently 7.29% below its 52-week high and 108.97% above its 52-week low.

The Argentine communication services company has a market cap of $7.22 billion and enterprise value of $7.91 billion.

With 0.03% of outstanding shares, Caxton Associates (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Fisher.

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

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