Companies growing their earnings per share 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 earnings per share of Alliance Data Systems Corp. (ADS, Financial) have grown 12% annually over the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 19.4% margin of safety at $257.11 per share. The price-earnings ratio is 18.35. The stock price has been as high as $278.33 and as low as $209 over the past 52 weeks; it is currently 8.53% below its 52-week high and 21.81% above its 52-week low.
The credit services company has a market cap of $14.07 billion and an enterprise value of $24.76 billion.
The company’s largest guru shareholder is Jeff Ubben (Trades, Portfolio) with 10.64% of outstanding shares, followed by VA Partners I LLC with 10.64%, Glenn Greenberg (Trades, Portfolio) with 2.51% and Jerome Dodson (Trades, Portfolio) with 0.34%.
The Kroger Co.'s (KR, Financial) earnings per share have grown 27% per year for the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 30.6% margin of safety at $30.21 per share. The price-earnings ratio is 18.35. The stock price has been as high as $34.75 and as low as 19.69 in the last 52 weeks; it is currently 11.28% below its 52-week high and 56.58% above its 52-week low.
The grocery store chain has a market cap of $27.17 billion and an enterprise value of $41.64 billion.
With 0.18% of outstanding shares,Ă‚ Ray Dalio (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Joel Greenblatt (Trades, Portfolio) with 0.13% and Jeff Auxier (Trades, Portfolio) with 0.03%.
The earnings per share of Ross Stores Inc. (ROST, Financial) have grown 14% annually over the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 8% margin of safety at $82 per share. The price-earnings ratio is 26.64. The stock price has been as high as $85.66 and as low as $52.85 over the past 52 weeks; it is currently 2.65% below its 52-week high and 57.79% above its 52-week low.
It discount retailer has a market cap of $31.87 billion and an enterprise value of $31.12 billion.
The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 3.76% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.87% and Jim Simons (Trades, Portfolio) with 0.63%.
Southwest Airlines Co.'s (LUV, Financial) earnings per share have grown 58% annually over the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 63.6% margin of safety at $60.31 per share. The price-earnings ratio is 10.28. The stock price has been as high as $66.99 and as low as $49.76 in the last 52 weeks; it is currently 10.68% below its 52-week high and 20.24% above its 52-week low.
The airline has a market cap of $35.5 billion and an enterprise value of $35.9 billion.
With 11.95% of outstanding shares, PRIMECAP Management is the company's largest guru shareholder, followed by Warren Buffett (Trades, Portfolio) with 8.03%, Barrow, Hanley, Mewhinney & Strauss with 0.39% and Steven Cohen (Trades, Portfolio) with 0.28%.
The earnings per share of O'Reilly Automotive Inc. (ORLY, Financial) have grown 24% per year for the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 19.7% margin of safety at $268.27 per share. The price-earnings ratio is 22.85. The stock price has been as high as $279.23 and as low as $169.43 in the last 52 weeks; it is currently 3.93% below its 52-week high and 58.34% above its 52-week low.
The auto parts retailer has a market cap of $222.811.71 billion and an enterprise value of $25.67 billion.
The company’s largest shareholder among the gurus is Chuck Akre (Trades, Portfolio) with 2.23% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 1.56% and David Abrams (Trades, Portfolio) with 1%.
NetEase Inc. 's (NTES, Financial) earnings per share have grown 25% annually over the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 23.4% margin of safety at $316.06 per share. The price-earnings ratio is 22.29. The stock price has been as high as $377.64 and as low as $248.32 over the past 52 weeks; it is currently 14.52% below its 52-week high and 29.99% above its 52-week low.
The Chinese internet technology company has a market cap of $42.37 billion and an enterprise value of $41.75 billion.
With 2.04% of outstanding shares, Simons is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.71% and Jeremy Grantham (Trades, Portfolio) with 0.25%.
Disclosure: I do not own any stocks mentioned in this article.
