5 Bargain Stocks With Positive Earnings Growth Estimates

Fiat Chrysler tops the list

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Dec 10, 2018
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According to the GuruFocus All-in-One Screener, the following stocks are trading at a discount and have positive three- to five-year future earnings estimates.

Fiat Chrysler Automobiles NV (FCAU, Financial) is trading around $15 per share. The discounted cash flow calculator gives the stock a fair value of $26.3 per share, suggesting it has a 42% margin of safety at current prices.

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GuruFocus gave the automaker a profitability and growth rating of 7 out of 10. Its earnings per share have grown 83.30% over the past decade. Analysts project a three-year to five-year earnings growth rate of 5.41%. While the return on equity of 14.44% is outperforming the sector, the return on assets of 3.21% is underperforming 54 of companies in the Global Auto Manufacturers industry.

Chase Coleman (Trades, Portfolio) is the company's largest shareholder among the gurus with 3.17% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 1.25%, Bill Nygren (Trades, Portfolio) with 1.15% and Pioneer Investments (Trades, Portfolio) with 0.77%.

Grupo Aeroportuario del Sureste (ASRMF, Financial) is trading around $17.85 per share. The discounted cash flow calculator gives the stock a fair value of $28.64 per share, suggesting it has a 38% margin of safety.

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The company, which operates, maintains and develops airports in Mexico, has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 21.40% over the past decade. Analysts project a three-year to five-year earnings growth rate of 8.81%. Its return on equity of 21.95% and return on assets of 10.80% are outperforming 90% of companies in the Global Airports and Air Services industry.

Gentex Corp. (GNTX, Financial) is trading around $21 per share. The discounted cash flow calculator gives the stock a fair value of $44.21 per share, suggesting it has a 53% margin of safety.

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The manufacturer of auto parts has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 17.90% over the last five years. Analysts project a three-year to five-year earnings growth rate of 10.10%. Its return on equity of 23.55% and return on assets of 20.56% are outperforming 87% of companies in the Global Auto Parts industry.

Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder with 1.22% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.36%, First Pacific Advisors (Trades, Portfolio) with 0.35% and the FPA Capital Fund (Trades, Portfolio) with 0.13%.

The Interpublic Group of Companies Inc. (IPG, Financial) is trading around $22.64 per share. The discounted cash flow calculator gives the stock a fair value of $38.88 per share, suggesting it has a 42% margin of safety.

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The advertising and marketing services company has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 14.90% over the last five years. Analysts project a three-year to five-year earnings growth rate of 9.54%. The return on equity of 27.07% and the return on assets of 4.56% are outperforming 63% of companies in the Global Advertising Agencies industry.

With 4.34% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by John Rogers (Trades, Portfolio) with 1.92%, Pioneer Investments with 1.08% and Hotchkis & Wiley with 0.76%.

Encore Capital Group Inc. (ECPG) is trading around $24 per share. The discounted cash flow calculator gives the stock a fair value of $73.35 per share, suggesting it has a 66% margin of safety.

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The consumer banking company has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share declined 0.10% over the last five years. Analysts project a three-year to five-year earnings growth rate of 13%. While the return on equity of 12.87% is outperforming the sector, the return on assets of 1.81% is underperforming 56% of companies in the Global Asset Management industry.

Barrow, Hanley, Mewhinney & Strauss is the largest guru shareholder of the company with 0.18% of outstanding shares, followed by Paul Tudor Jones (Trades, Portfolio) with 0.05%.

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

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