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Tiziano Frateschi
Tiziano Frateschi
Articles (2006)  | Author's Website |

6 Undervalued Stocks Growing Earnings

BlackRock, UPS top the list

January 24, 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 BlackRock Inc. (BLK) have grown 13% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 32% margin of safety at $410 per share. The price-earnings ratio 15.76. The share price has been as high as $594.52 and as low as $360.79 in the last 52 weeks; it is currently 29.45% below its 52-week high and 16.26% above its 52-week low.

The investment management company has a market cap $66.56 billion and an enterprise value of $65.07 billion.

The company’s largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.15% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.62%, Tom Gayner (Trades, Portfolio) with 0.12% and Ken Fisher (Trades, Portfolio) with 0.08%.

United Parcel Service Inc.'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 undervalued and is trading with a 33% margin of safety at $100 per share. The price-earnings ratio is 16.26. The share price has been as high as $134.02 and as low as $89.89 in the last 52 weeks; it is currently 24.19% below its 52-week high and 13.03% above its 52-week low.

The courier service has a market cap of $87.03 billion and an enterprise value of $105.79 billion.

With 0.53% of outstanding shares, Bill Gates (Trades, Portfolio)’ foundation trust is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 0.43% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%.

The earnings per share of Itau Unibanco Holding SA (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 13.13. The share price has been as high as $11.32 and as low as $6.57 in the last 52 weeks; it is currently 11.66% below its 52-week high and 52.28% above its 52-week low.

The bank holding company has a market cap of $90.49 billion and an enterprise value of $121.25 billion.

With 0.27% of outstanding shares, Fisher is the company's largest guru shareholder, followed by Ken Heebner (Trades, Portfolio) with 0.1%.

Toronto-Dominion Bank’s (TD) 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 27% at $54. The price-earnings ratio is 12.13. The share price has been as high as $62.0 and as low as $47.73 in the last 52 weeks; it is currently 12.08% below its 52-week high and 14.20% above its 52-week low.

The finacial services company has a market cap of $99.6 billion and an enterprise value of $170.63 billion.

The company’s largest guru shareholder is Simons’ firm with 0.24% of outstanding shares, followed by the Pioneer Investments with 0.11% and Jeremy Grantham (Trades, Portfolio) with 0.07%.

The earnings per share of Novo Nordisk A/S (NVO) have grown 16% 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 33% margin of safety at $46 per share. The price-earnings ratio is 19.71. The share price has been as high as $58.37 and as low as $41.23 in the last 52 weeks; it is currently 17.68% below its 52-week high and 16.54% above its 52-week low.

The health care company has a market cap of $113.45 billion and an enterprise value of $111 billion.

The largest guru shareholder of the company is Simons’ firm with 0.82% of outstanding shares, followed by Fisher with 0.57% and Gayner with 0.04%.

Union Pacific Corp.'s (UNP) earnings per share have grown 19% per year over the last five years.

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According to the DCF calculator, the stock is overpriced by 58% at $158 per share. The price-earnings ratio is 10.62. The share price has been as high as $165.63 and as low as $121.22 in the last 52 weeks; it is currently 4.40% below its 52-week high and 30.62% above its 52-week low.

The railroad company has a market cap of $116.66 billion and an enterprise value of $137.17 billion.

With 1.36% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 0.71% and Steve Mandel (Trades, Portfolio) with 0.44%.

Disclosure: I do not own any stocks mentioned.

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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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