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Tiziano Frateschi
Tiziano Frateschi
Articles (1892)  | Author's Website |

6 Bargain Stocks With Positive Earnings Growth Estimates

Cheesecake Factory makes the list

January 14, 2019 | About:

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.

Service Corp. International (NYSE:SCI) is trading around $41.90 per share. The discounted cash flow calculator gives the stock a fair value of $46.95 per share, suggesting it has an 11% margin of safety.

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The funeral services provider has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 12.90% over the past decade. Analysts project a three-year to five-year earnings growth rate of 12%. Its return on equity of 35.19% and return on assets of 3.93% are outperforming 54% of companies in the Global Personal Services industry.

With 0.5% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.14% and Jeremy Grantham (Trades, Portfolio) with 0.06%.

Multi-Color Corp. (NASDAQ:LABL) is trading around $42.07 per share. The DCF calculator gives the stock a fair value of $79.75 per share, suggesting it has a 47% margin of safety.

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The provider of label solutions has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 18.50% over the past five years. Analysts project a three-year to five-year earnings growth rate of 8%. While the return on equity of 12.61% is outperforming the sector, the return on assets of 3.36% is underperforming 51% of companies in the Global Business Services industry.

Ken Fisher (Trades, Portfolio) is the largest guru shareholder of the company with 0.13% of outstanding shares.

Cheesecake Factory Inc. (NASDAQ:CAKE) is trading around $46 per share. The DCF calculator gives the stock a fair value of $61.38 per share, suggesting it has a 25% margin of safety.

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The company, which operates casual dining restaurants, has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 12.40% over the last five years. Analysts project a three-year to five-year earnings growth rate of 12%. The return on equity of 23.30% and the return on assets of 10.80% are outperforming 88% of companies in the Global Restaurants industry.

With 2.42% of outstanding shares, Richard Snow (Trades, Portfolio) is the is the company's largest guru shareholder, followed by Ron Baron (Trades, Portfolio) with 1.76%, Mario Gabelli (Trades, Portfolio) with 1.32% and Lee Ainslie (Trades, Portfolio) with 0.49%.

TJX Companies Inc. (NYSE:TJX) is trading around $47.60 per share. The DCF calculator gives the stock a fair value of $55.71 per share, suggesting it has a 15% margin of safety.

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The retailer of discounted apparel and home fashions has a profitability and growth rating of 9 out of 10. Its earnings per share have grown 18% over the last five years. Analysts project a three-year to five-year earnings growth rate of 8.50%. The return on equity of 60.60% and return on assets of 21.78% are outperforming 97% of companies in the Global Apparel Stores industry.

PRIMECAP Management (Trades, Portfolio) is the largest guru shareholder of the company with 1.32% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 0.56%, Ruane Cunniff (Trades, Portfolio) with 0.49% and Grantham with 0.42%.

Novo Nordisk A/S (NYSE:NVO) is trading around $46.7 per share. The DCF calculator gives the stock a fair value of $37.11 per share, suggesting it is overpriced by 31%.

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The pharmaceutical company has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 15.80% over the last five years. Analysts project a three-year to five-year earnings growth rate of 6.12%. The return on equity of 58.15% and return on assets of 27.69% are outperforming 99% of companies in the Global Biotechnology industry.

With 0.82% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Fisher with 0.57% and Tom Gayner (Trades, Portfolio) with 0.04%.

Southwest Airlines Co. (NYSE:LUV) is trading around $48 per share. The DCF calculator gives the stock a fair value of $178.5 per share, suggesting it has a 74% margin of safety.

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The airline has a profitability and growth rating of 8 out of 10. Its earnings per share have climbed 58.10% over the last five years. Analysts project a three-year to five-year earnings growth rate of 3.71%. The return on equity of 37.64% and return on assets of 14.39% are outperforming 84% of companies in the Global Airlines industry.

PRIMECAP Management is the company's largest guru shareholder with 13.15% of outstanding shares, followed by Warren Buffett (Trades, Portfolio) with 9.97%, Barrow, Hanley, Mewhinney & Strauss with 0.37% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.25%.

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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