Companies growing their earnings per share are often good investments as they can return a solid profit to investors. According to the discounted cash flow calculator, the following undervalued companies have grown their earnings over a five-year period.
The earnings per share of Tractor Supply Co. (TSCO, Financial) have grown 12% annually over the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 22.6% margin of safety at $75.13 per share. The price-earnings ratio is 22.03. The stock price has been as high as $82.68 and as low as $49.87 in the last 52 weeks; it is currently 9.13% below its 52-week high and 50.65% above its 52-week low.
The farm and ranch supplies retailer has a market cap of $9.17 billion and an enterprise value of $9.78 billion.
The company’s largest shareholder among the gurus is Pioneer Investments (Trades, Portfolio) with 1.58% of outstanding shares, followed by David Rolfe (Trades, Portfolio) with 1.5%, Columbia Wanger (Trades, Portfolio) with 0.32% and Jim Simons (Trades, Portfolio) with 0.2%.
Qurate Retail Inc.'s (QRTEA, Financial) (QRTEB) earnings per share have grown 18% per year for the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 29.8% margin of safety at $20.22 per share. The price-earnings ratio is 7.52. The stock price has been as high as $29.11 and as low as $20.15 in the last 52 weeks; it is currently 30.54% below its 52-week high and 0.35% above its 52-week low.
The media conglomerate has a market cap of $9.5 billion and enterprise value of $15.98 billion.
With 5.69% of outstanding shares, Dodge & Cox is the compamy's largest shareholder among the gurus, followed by Bill Nygren (Trades, Portfolio) with 2.03% and Charles de Vaulx (Trades, Portfolio) with 0.42%.
L Brands Inc.'s (LB, Financial) earnings per share have grown 7% per year over the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 44.6% margin of safety at $34.57 per share. The price-earnings ratio is 10.60. The stock price has been as high as $63.10 and as low as $30.70 in the last 52 weeks; it is currently 45.21% below its 52-week high and 12.61% above its 52-week low.
The company, which owns the Bath & Bodyworks and Victoria's Secret brands, among others, has a market cap of $9.64 billion and an enterprise value of $13.92 billion.
PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 6.93% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.36%, Simons with 0.72% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.7%.
The earnings per share of Torchmark Corp. (TMK, Financial) have grown 21% annually over the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 63.3% margin of safety at $85.78 per share. The price-earnings ratio is 6.81. The stock price has been as high as $93.60 and as low as $74.48 in the last 52 weeks; it is currently 8.35% below its 52-week high and 15.17% above its 52-week low.
The company, which offers both life and health insurance, has a market cap of $9.74 billion and an enterprise value of $11.07 billion.
The company’s largest guru shareholder is Warren Buffett (Trades, Portfolio) with 5.6% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 0.29% and Ken Fisher (Trades, Portfolio) with 0.16%.
LKQ Corp.'s (LKQ, Financial) earnings per share have grown 14% annually over the past five years.
According to the DCF calculator, the stock is undervalued and is trading with a 36.6% margin of safety at $31.93 per share. The price-earnings ratio is 18.14. The stock price has been as high as $43.86 and as low as $29.60 in the last 52 weeks; it is currently 27.20% below its 52-week high and 7.87% above its 52-week low.
The company distributes vehicle replacement parts, components and systems. It has a market cap of $9.89 billion and an enterprise value of $12.97 billion.
With 1.02% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by Steven Cohen (Trades, Portfolio) with 0.41% and Columbia Wanger with 0.36%.
Disclosure: I do not own any stocks mentioned in this article.
