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Tiziano Frateschi
Tiziano Frateschi
Articles (1890)  | Author's Website |

6 Stocks With Margin of Safety and Growing Earnings

Starbucks on the list

January 09, 2019 | 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 Walgreens Boots Alliance Inc. (WBA) have grown 16% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 4% margin of safety at $70 per share. The price-earnings ratio is 12.89. The share price has been as high as $86.31 and as low as $59.07 in the last 52 weeks; it is currently 18.93% below its 52-week high and 18.45% above its 52-week low.

The pharmacy-led health and wellbeing company, has a market cap $66.01 billion and an enterprise value of $83 billion.

Walgreens’ largest guru shareholder is Vanguard Health Care Fund (Trades, Portfolio) with 0.85% of outstanding shares, followed by the Larry Robbins (Trades, Portfolio) with 0.41and Bill Gates (Trades, Portfolio)’ Bill & Melinda Gates Foundation Trust with 0.37%.

British American Tobacco PLC ADR’s (BTI) earnings per share have grown 41% 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 95% margin of safety at $32 per share. The price-earnings ratio is 1.35. The share price has been as high as $71.44 and as low as $30.67 in the last 52 weeks; it is currently 55.62% below its 52-week high and 3.39% above its 52-week low.

The manufacturer of cigarettes and other tobacco products, has a market cap of $72.27 billion and an enterprise value of $127.71 billion.

With 0.06% of outstanding shares, Lee Ainslie’s Maverick Capital Ltd is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio)’s Causeway Capital Management with 0.04%, Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.01%.

The earnings per share of Starbucks Corp. (SBUX) have grown 136% 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 31% margin of safety at $63.57 per share. The price-earnings ratio is 19.73. The share price has been as high as $68.98 and as low as $47.37 in the last 52 weeks; it is currently 7.84% below its 52-week high and 34.20% above its 52-week low.

The company which retails coffee and tea products, has a market cap of $78.86 billion and an enterprise value of $79.37 billion.

With 0.42% of outstanding shares, Frank Sands (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.27%, Jerome Dodson (Trades, Portfolio)’s Parnassus Fund with 0.04% and Tom Gayner (Trades, Portfolio) with 0.03%.

United Parcel Service Inc. Class B’s (UPS) earnings per share have grown 31% per year over the last five years.

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According to the DCF calculator, the stock is overpriced by 35% at $97.41 per share. The price-earnings ratio is 15.58. The share price has been as high as $135.53 and as low as $89.89 in the last 52 weeks; it is currently 28.13% below its 52-week high and 8.37% above its 52-week low.

The provider of transportation, distribution, logistics, insurance and financing, has a market cap of $83.7 billion and an enterprise value of $102.19 billion.

The company’s largest guru shareholder is Gates’s foundation with 0.53% of outstanding shares, followed by the PRIMECAP Management (Trades, Portfolio) with 0.43% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.27%.

The earnings per share of Itau Unibanco Holding SA ADR (ITUB) 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 11% margin of safety at $10 per share. The price-earnings ratio is 13.14. The share price has been as high as $11.32 and as low as $6.57 in the last 52 weeks; it is currently 12.72% below its 52-week high and 50.46% above its 52-week low.

The provider of investment banking and foreign trade financing, has a market cap of $88.82 billion and an enterprise value of $117.99 billion.

The largest guru shareholder of the company is Ken Fisher (Trades, Portfolio) with 0.27% of outstanding shares, followed by Ken Heebner (Trades, Portfolio)’s Capital Growth Management LP with 0.1%, Howard Marks' (Trades, Portfolio) Oaktree Capital Management LP with 0.08% and Dodge & Cox with 0.07%.

The Toronto-Dominion Bank (TD)'s earnings per share have grown 11% per year over the last five years.

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According to the DCF calculator, the stock is overpriced by 32% at $51 per share. The price-earnings ratio is 11.34. The share price has been as high as $62.0 and as low as $47.73 in the last 52 weeks; it is currently 17.89% below its 52-week high and 6.66% above its 52-week low.

The provider of financial products and services has a market cap of $92.7 billion and an enterprise value of $161.55 billion.

With 0.24% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.27%, Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.07%, Andreas Halvorsen (Trades, Portfolio)’s Viking Global Investors LP with 0.07% and Ray Dalio (Trades, Portfolio) ’s Bridgewater Associates with 0.05%.

Disclosure: I do not own any stocks mentioned.

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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