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Tiziano Frateschi
Tiziano Frateschi
Articles (2569)  | Author's Website |

5 Undervalued Companies Growing Earnings

Ulta Beauty tops the list

Companies that are growing their earnings are often good investments because 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 Ulta Beauty Inc. (NASDAQ:ULTA) have grown 27% annually over the last five years.

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The price-earnings ratio is 27.53. The stock price has been as high as $290.30 and as low as $191.70 in the last 52 weeks; it is currently 2.88% below its 52-week high and 47.06% above its 52-week low.

The company, which sells cosmetics and fragrances and provides salon services, has a market cap of $15.64 billion and an enterprise value of $16.46 billion.

Ulta’s largest shareholder among the gurus is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.74% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.47% and the Pioneer Investments (Trades, Portfolio) with 0.29%.

SK Telecom Co. Ltd.’s (NYSE:SKM) earnings per share have grown 10% 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 41% margin of safety at $27 per share. The price-earnings ratio is 6.38. The stock price has been as high as $28.97 and as low as $22.66 in the last 52 weeks; it is currently 7.46% below its 52-week high and 18.31% above its 52-week low.

The provider of wireless telecommunications services has a market cap of $17.01 billion and an enterprise value of $22.03 billion.

With 0.61% of outstanding shares, Sarah Ketterer (Trades, Portfolio) is the company's largest guru shareholder, followed by NWQ Managers (Trades, Portfolio) with 0.31%, Jeremy Grantham (Trades, Portfolio) with 0.22% and Simons' firm with 0.03%.

The earnings per share of CGI Group Inc. (NYSE:GIB) have grown 43% 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 11% margin of safety at $61 per share. The price-earnings ratio is 22.04. The stock price has been as high as $66.53 and as low as $51.16 in the last 52 weeks; it is currently 7.82% below its 52-week high and 19.88% above its 52-week low.

The company, which supplies information technology services, has a market cap of $17.52 billion and an enterprise value of $18.81 billion.

CGI’s largest guru shareholder is Pioneer Investments with 0.08% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.06% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.04%.

WPP PLC’s (NYSE:WPP) earnings per share have grown 17% 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 65% margin of safety at $67.83 per share. The price-earnings ratio is 6.95. The stock price has been as high as $103.53 and as low as $66.94 in the last 52 weeks; it is currently 34.48% below its 52-week high and 1.33% above its 52-week low.

The U.K.-based advertising agency has a market cap of $17 billion and an enterprise value of $24.34 billion.

With 0.32% of outstanding shares, Charles Brandes (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 0.15%, Tweedy Browne (Trades, Portfolio) with 0.09% and Ken Fisher (Trades, Portfolio) with 0.02%.

The earnings per share of Credicorp Ltd. (NYSE:BAP) have grown 19% 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 28% margin of safety at $220 per share. The price-earnings ratio is 13.79. The stock price has been as high as $239.54 and as low as $189.69 in the last 52 weeks; it is currently 6.62% below its 52-week high and 17.92% above its 52-week low.

The financial services company has a market cap of $17.84 billion and an enterprise value of $15.09 billion.

Credicorp’s largest guru shareholder is Fisher with 1.61% of outstanding shares, followed by Ketterer with 0.41% and Frank Sands (Trades, Portfolio) with 0.28%.

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

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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