6 Cheap Stocks With Growing Earnings

Alaska Air, Telecom Argentina top the list

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Jun 27, 2018
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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 Alaska Air Group Inc. (ALK, Financial) have grown 29% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 24% margin of safety at $60.63 per share. The price-earnings ratio is 8.13. The stock price has been as high as $95.75 and as low as $57.53 in the last 52 weeks; it is currently 35.52% below its 52-week high and 7.32% above its 52-week low.

The airline company, which has a market cap of $7.61 billion, offers passenger air, freight and mail services.

The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 4.87% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.29% and Diamond Hill Capital (Trades, Portfolio) with 0.22%.

Ingredion Inc.'s (INGR, Financial) earnings per share have grown 7% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 29% margin of safety at $109.55 per share. The price-earnings ratio is 15.06. The stock price has been as high as $146.28 and as low as $107.77 in the last 52 weeks; it is currently 25.11% below its 52-week high and 1.65% above its 52-week low.

With a market cap of $7.91 billion, the company provides high-quality food and industrial ingredients.

With 0.97% of outstanding shares,Ă‚ Ken Fisher (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Jim Simons (Trades, Portfolio) with 0.71%, Richard Snow (Trades, Portfolio) with 0.63% and Pioneer Investments (Trades, Portfolio) with 0.55%.

The earnings per share of Unum Group (UNM, Financial) have grown 9% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 39% margin of safety at $38.11 per share. The price-earnings ratio is 8.01. The stock price has been as high as $58.73 and as low as $36.91 in the last 52 weeks; it is currently 35.11% below its 52-week high and 3.25% above its 52-week low.

The company provides group and individual income protection insurance products. It has a market cap of $8.43 billion and an enterprise value of $10.23 billion.

The company’s largest shareholder among the gurus is Donald Smith (Trades, Portfolio) with 0.93% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.64% and Pioneer Investments with 0.52%.

Telecom Argentina SA's (TEO, Financial) earnings per share have grown 18% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 64% margin of safety at $20.68 per share. The price-earnings ratio is 15.91. The stock price has been as high as $40.19 and as low as $19.77 in the last 52 weeks; it is currently 47.85% below its 52-week high and 6.02% above its 52-week low.

With a market cap of $9.03 billion and an enterprise value of $10.36 billion, the company provides fixed-line telecommunications services in Argentina.

With 0.03% of outstanding shares, Simons is the company's largest guru shareholder, followed by Caxton Associates (Trades, Portfolio) with 0.01%.

The earnings per share of Snap-on Inc. (SNA, Financial) have grown 14% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 15% margin of safety at $159.62 per share. The price-earnings ratio is 16.03. The stock price has been as high as $185.47 and as low as $140.83 in the last 52 weeks; it is currently 13.94% below its 52-week high and 13.34% above its 52-week low.

The company manufactures and markets tools and systems solutions for professional users. It has a market cap of $9.03 billion and an enterprise value of $10.05 billion.

The company’s largest shareholder among the gurus is John Rogers (Trades, Portfolio) with 1.46% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.69%, Columbia Wanger (Trades, Portfolio) with 0.67% and Richard Pzena (Trades, Portfolio) with 0.53%.

The Interpublic Group of Companies Inc.'s (IPG, Financial) earnings per share have grown 15% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 36% margin of safety at $23.62 per share. The price-earnings ratio is 17.21. The stock price has been as high as $26.01 and as low as $18.30 in the last 52 weeks; it is currently 9.34% below its 52-week high and 28.85% above its 52-week low.

The advertising and marketing services company has a market cap of $9.09 billion and enterprise value of $10.61 billion.

With 4.57% of outstanding shares, Pzena is the company's largest shareholder among the gurus, followed by Rogers with 1.99%.

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