1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Tiziano Frateschi
Tiziano Frateschi
Articles (1849)  | Author's Website |

6 Undervalued Stocks Growing Earnings

Ross Stores tops the list

December 31, 2018 | About:

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 Ross Stores Inc. (NASDAQ:ROST) have grown 15% annually over the last five years.

1921952457.png

According to the DCF calculator, the stock is undervalued and is trading with a 33% margin of safety at $82.61 per share. The price-earnings ratio is 19.20. The share price has been as high as $104.35 and as low as $73.76 in the last 52 weeks; it is currently 21.82% below its 52-week high and 10.60% above its 52-week low.

The discount apparel and home fashions chain has a market cap of $30.23   billion and an enterprise value of $29.28 billion.

Ross Stores’ largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 3.33% of outstanding shares, followed by the Pioneer Investments (Trades, Portfolio) with 1.4% and David Rolfe (Trades, Portfolio) with 0.2%.

Energy Transfer LP’s (NYSE:ET) earnings per share have grown 37% per year over the last five years.

1192313629.png

According to the DCF calculator, the stock is undervalued and is trading with a 27% margin of safety at $13 per share. The price-earnings ratio is 11.01. The share price has been as high as $19.34 and as low as $11.68 in the last 52 weeks; it is currently 33.97% below its 52-week high and 9.33% above its 52-week low.

The owner of natural gas gathering systems has a market cap of $33.42 billion and an enterprise value of $109.93 billion.

With 0.17% of outstanding shares, David Tepper (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.11%, Leon Cooperman (Trades, Portfolio) with 0.09% and T Boone Pickens (Trades, Portfolio)' BP Capital with 0.01%.

The earnings per share of Aflac Inc. (NYSE:AFL) have grown 9% per year over the last five years.

1892481911.png

According to the DCF calculator, the stock is undervalued and is trading with a 58% margin of safety at $44.95 per share. The price-earnings ratio is 7.11. The share price has been as high as $48.19 and as low as $41.41 in the last 52 weeks; it is currently 6.72% below its 52-week high and 8.55% above its 52-week low.

The general business holding company has a market cap of $34.22 billion and an enterprise value of $36.07 billion.

With 0.31% of outstanding shares, Smead Capital Management, Inc. (Trades, Portfolio) is the company's largest guru shareholder, followed by John Rogers (Trades, Portfolio) with 0.29%, Pioneer Investments with 0.08% and Jeremy Grantham (Trades, Portfolio) with 0.04%.

Baxter International Inc.’s (NYSE:BAX) earnings per share have grown 7% per year over the last five years.

704058807.png

According to the DCF calculator, the stock is overpriced by 174% at $65.21 per share. The price-earnings ratio is 29.51. The share price has been as high as $78.38 and as low as $61.05 in the last 52 weeks; it is currently 16.80% below its 52-week high and 6.81% above its 52-week low.

The provider of hospital products has a market cap of $34.7 billion and an enterprise value of $35.31 billion.

The company’s largest guru shareholder is Daniel Loeb (Trades, Portfolio) with 5.26% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.08% and Bill Nygren (Trades, Portfolio) with 1%.

The earnings per share of Sherwin-Williams Co. (NYSE:SHW) have grown 24% per year over the last five years.

1621664983.png

According to the DCF calculator, the stock is undervalued and is trading with a 13% margin of safety at $390 per share. The price-earnings ratio is 19.45. The share price has been as high as $479.64 and as low as $355.28 in the last 52 weeks; it is currently 18.78% below its 52-week high and 9.56% above its 52-week low.

The provider of architectural paint and paint-related products has a market cap of $36.47 billion and an enterprise value of $45.96 billion.

The largest guru shareholder of the company is Steven Cohen (Trades, Portfolio) with 0.09% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 0.04%, Ray Dalio (Trades, Portfolio) with 0.02% and Diamond Hill Capital (Trades, Portfolio) with 0.01%.

Henkel AG & Co. KGaA's (HENOF) earnings per share have grown 11% per year over the last five years.

2013959401.png

According to the DCF calculator, the stock is overpriced by 17% at $113.5 per share. The price-earnings ratio is 15.14. The share price has been as high as $140 and as low as $109 in the last 52 weeks; it is currently 18.99% below its 52-week high and 3.94% above its 52-week low.

The chemical and consumer goods company has a market cap of $44.04 billion and an enterprise value of $47.32 billion.

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

Read more here:

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


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Performances of the stocks mentioned by Tiziano Frateschi


User Generated Screeners


nehiranMakeyourmoney
nehiranMicro%20Hidden%20Subsidiary/Ma
5dmeyerSmall cap value screen
pbarker46Utilities & Pipelines
awilkinsonMicro Hidden Subsidiary/Margin
gilsibolborovalue 2/17/19
recboilerRule #1 (5 yr)
Liam W. PhilpotLiam's Cash Cows
dennis.woodsideUS Food comps
DANGORDONBOOK VALUE GROWTH >10%
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK