6 Cheap Stocks Growing Earnings

Intel tops the list

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Feb 01, 2019
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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 Intel Corp. (INTC, Financial) have grown 6.56% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 38% margin of safety at $48 per share. The price-earnings ratio is 10.39. The share price has been as high as $57.60 and as low as $42.04 in the last 52 weeks; it is currently 19.20% below its 52-week high and 10.70% above its 52-week low.

The chipmaker has a market cap $212.41 billion and an enterprise value of $227.54 billion.

The company’s largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.55% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.54%, Pioneer Investments (Trades, Portfolio) with 0.16% and Lee Ainslie (Trades, Portfolio) with 0.15%.

TJX Companies Inc.'s (TJX, Financial) earnings per share have grown 12.37% 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 13% margin of safety at $48.74 per share. The price-earnings ratio is 19.89. The share price has been as high as $56.64 and as low as $36.41 in the last 52 weeks; it is currently 13.95% below its 52-week high and 33.86% above its 52-week low.

The off-price apparel and home fashions retailer has a market cap of $60.1 billion and an enterprise value of $59.62 billion.

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

The earnings per share of Williams-Sonoma Inc. (WSM, Financial) have grown 11.37% 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 38% margin of safety at $53 per share. The price-earnings ratio is 16.55. The share price has been as high as $73.99 and as low as $45.01 in the last 52 weeks; it is currently 28.98% below its 52-week high and 16.76% above its 52-week low.

The kitchenware and home furnishings retailer has a market cap of $4.21 billion and an enterprise value of $4.41 billion.

With 0.92% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder, followed by Ainslie with 0.09%, the CI Can Am Small Cap Fund (Trades, Portfolio) with 0.07% and Michael Price (Trades, Portfolio) with 0.07%.

BJ's Restaurants Inc.’s (BJRI, Financial) earnings per share have grown 15% per year over the last five years.

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According to the DCF calculator, the stock is overpriced by 25% at $48. The price-earnings ratio is 16.7. The share price has been as high as $76.50 and as low as $35.51 in the last 52 weeks; it is currently 31.33% below its 52-week high and 47.93% above its 52-week low.

The restaurant operator has a market cap of $1.12 billion and an enterprise value of $1.19 billion.

The company’s largest guru shareholder is Ron Baron (Trades, Portfolio) with 1.81% of outstanding shares, followed by Simons' firm with 1.41%, Joel Greenblatt (Trades, Portfolio) with 0.49% and Coatue Management with 0.03%.

The earnings per share of Cerner Corp. (CERN, Financial) have grown 12.39% 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 17% margin of safety at $54.5 per share. The price-earnings ratio is 21.80. The share price has been as high as $69.90 and as low as $48.78 in the last 52 weeks; it is currently 22.03% below its 52-week high and 11.73% above its 52-week low.

The provider of health care information technology has a market cap of $18 billion and an enterprise value of $17.58 billion.

The largest guru shareholder of the company is the Vanguard Health Care Fund (Trades, Portfolio) with 3.45% of outstanding shares, followed by Simons’ firm with 0.23% and Pioneer Investments with 0.18%.

China Telecom Corp. Ltd.'s (CHA, Financial) earnings per share have grown 7.60% per year over the last five years.

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According to the DCF calculator, the stock is overpriced by 15% at $54 per share. The price-earnings ratio is 15.48. The share price has been as high as $55.77 and as low as $41.28 in the last 52 weeks; it is currently 0.84% below its 52-week high and 33.96% above its 52-week low.

The company, which provides a range of wireline and mobile telecommunications services, has a market cap of $44.77 billion.

With 0.03% of outstanding shares, Simons’ firm is the company's largest guru shareholder.

Disclosure: I do not own any stocks mentioned.

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