6 Cheap Stocks With Positive Earnings Growth Estimates

Home Depot tops the list

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Mar 25, 2019
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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.

The Home Depot Inc. (HD, Financial) is trading around $190 per share. The discounted cash flow calculator gives the stock a fair value of $277 per share, suggesting it has a 32% margin of safety.

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The home improvement retailer has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have increased 19.50% over the last five years. Analysts project a three-year to five-year earnings growth rate of 11.24%. The return on equity of 1,210.91% and return on assets of 24.54% are outperforming 97% of companies in the Global Home Improvement Stores industry.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.56% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.41%, Spiros Segalas (Trades, Portfolio) with 0.22% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.14%.

CNOOC Ltd. (CEO, Financial) is trading around $173 per share. The DCF calculator gives the stock a fair value of $189.18 per share, suggesting it has a 7% margin of safety.

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GuruFocus gave the oil and gas company a profitability and growth rating of 6 out of 10. Its earnings per share have fallen 45.20% over the past decade. Analysts project a three-year to five-year earnings growth rate of 8.89%. The return on equity of 13.20% and return on assets of 8.08% are outperforming 70% of companies in the Global Oil and Gas Exploration and Production industry.

Simons’ firm is the company's largest guru shareholder with 0.15% of outstanding shares, followed by Howard Marks (Trades, Portfolio) with 0.07%, Jeremy Grantham (Trades, Portfolio) with 0.01% and Lee Ainslie (Trades, Portfolio) with 0.01%.

Baidu Inc. (BIDU, Financial) is trading around $166.73 per share. The DCF calculator gives the stock a fair value of $335.04 per share, suggesting it has a 50% margin of safety.

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The Chinese search engine has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 11.50% over the past decade. Analysts project a three-year to five-year earnings growth rate of 21.33%. The return on equity of 19.31% and return on assets of 9.96% are outperforming 72% of companies in the Global Internet Content and Information industry.

With 1.51% of outstanding shares, Sarah Ketterer (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 1.42% and First Pacific Advisors (Trades, Portfolio) with 0.69%.

Union Pacific Corp. (UNP, Financial) is trading around $160.62 per share. The DCF calculator gives the stock a fair value of $185.14 per share, suggesting it has a 13% margin of safety.

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The railroad company has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 15.50% over the last 12 months. Analysts project a three-year to five-year earnings growth rate of 13.11%. The return on equity of 27.06% and return on assets of 10.19% are outperforming 99% of companies in the Global Railroads industry.

First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder with 0.74% of outstanding shares, followed by Dodge & Cox with 0.60% and Pioneer Investments Ă‚ with 0.41%.

Cummins Inc. (CMI, Financial) is trading around $156 per share. The DCF calculator gives the stock a fair value of $203.47 per share, suggesting it has a 24% margin of safety.

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The company, which manufactures diesel and natural gas engines, has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 3.90% over the last five years. Analysts project a three-year to five-year earnings growth rate of 7.05%. The return on equity of 29.34% and return on assets of 11.46% are outperforming 88% of companies in the Global Diversified Industrials industry.

With 2.19% of outstanding shares, HOTCHKIS & WILEY is the company's largest guru shareholder, followed by First Eagle Investment with 1.61% and Bill Nygren (Trades, Portfolio) with 1.09%.

Snap-on Inc. (SNA, Financial) is trading around $150 per share. The DCF calculator gives the stock a fair value of $246.3 per share, suggesting it has a 39% margin of safety.

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The company, which provides tools, repair information and systems solutions, has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 13.60% over the last five years. Analysts project a three-year to five-year earnings growth rate of 8.75%. The return on equity of 22.08% and return on assets of 12.80% are outperforming 88% of companies in the Global Tools and Accessories industry.

John Rogers (Trades, Portfolio) is the largest guru shareholder of the company with 1.57% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.55% and Richard Pzena (Trades, Portfolio) with 0.49%.

Disclosure: I do not own any stocks mentioned.

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