6 Companies Growing Earnings

LKQ Corp, F5 Networks on the list

Author's Avatar
Jul 09, 2018
Article's Main Image

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 Reinsurance Group of America Inc. (RGA, Financial) have grown 24% annually over the last five years.

139507177.png

According to the DCF calculator, the stock is undervalued and is trading with a 75.2% margin of safety at $136.13 per share. The price-earnings ratio is 4.97. The stock price has been as high as $165.12 and as low as $126.62 in the last 52 weeks; it is currently 18.62% below its 52-week high and 6.13% above its 52-week low.

The provider of insurance and reinsurance products has a market cap of $8.78 billion and an enterprise value of $10.57 billion.

The company’s largest shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio) with 0.68% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.26% and Chuck Royce (Trades, Portfolio) with 0.25%.

Universal Health Services Inc.'s (UHS, Financial) earnings per share have grown 12% per year over the last five years.

According to the DCF calculator, the stock is undervalued and is trading with a 43.8% margin of safety at $111.38 per share. The price-earnings ratio is 13.84. The stock price has been as high as $128.15 and as low as $95.26 in the last 52 weeks; it is currently 13.07% below its 52-week high and 16.94% above its 52-week low.

The company, which has a market cap of $10.52 billion, operates acute care hospitals and health centers.

With 4.92% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest investor among the gurus, followed by Larry Robbins (Trades, Portfolio) with 4.31% and Lee Ainslie (Trades, Portfolio) with 4.08%.

The earnings per share of F5 Networks Inc. (FFIV, Financial) have grown 14% per year over the last five years.

902438167.png

According to the DCF calculator, the stock is undervalued and is trading with a 9.1% margin of safety at $176.57 per share. The price-earnings ratio is 25.62. The stock price has been as high as $183.27 and as low as $114.63 in the last 52 weeks; it is currently 4.66% below its 52-week high and 52.43% above its 52-week low.

The company provides software-defined application services. It has a market cap of $10.68 billion and an enterprise value of $9.65 billion.

The company’s largest shareholder among the gurus is Simons with 2.94% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.14% and Ray Dalio (Trades, Portfolio) with 0.11%.

ASE Technology Holding Co. Ltd.'s (ASX, Financial) earnings per share have grown 7% per year over the past five years.

1372486313.png

According to the DCF calculator, the stock is undervalued and is trading with a 6.2% margin of safety at $4.53 per share. The price-earnings ratio is 13.47. The stock price has been as high as $8 and it is currently 43.75% below its 52-week high.

The provider of semiconductor packaging and testing services has a market cap of $9.66 billion and an enterprise value of $10.87 billion.

With 1.47% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest shareholder among the gurus, followed by Simons with 0.05%.

The earnings per share of LKQ Corp. (LKQ, Financial) have grown 14% per year over the last five years.

1893224117.png

According to the DCF calculator, the stock is undervalued and is trading with a 36.2% margin of safety at $32.13 per share. The price-earnings ratio is 18.05. The stock price has been as high as $43.86 and as low as $29.60 in the last 52 weeks; it is currently 27.59% below its 52-week high and 7.30% above its 52-week low.

The company provides alternative and mechanical replacement products. It has a market cap of $9.95 billion and an enterprise value of $12.92 billion.

The company’s largest guru shareholder is Chuck Akre (Trades, Portfolio) with 1.02% of outstanding shares, followed by Steven Cohen (Trades, Portfolio) with 0.41%, Columbia Wanger (Trades, Portfolio) with 0.36% and Pioneer Investments (Trades, Portfolio) with 0.19%.

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