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 per share over a five-year period.
The earnings per share of Novo Nordisk A/S (NVO, Financial) have grown 12.20% annually over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 22% margin of safety at $52 per share. The price-earnings ratio is 21.81. The share price has been as high as $52.83 and as low as $41.23 in the last 52 weeks; it is currently 0.98% below its 52-week high and 26.87% above its 52-week low.
The company, which manufactures biopharmaceutical products, has a market cap $125.14 billion and an enterprise value of $122.86 billion.
The company’s largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.87% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.59% and Tom Gayner (Trades, Portfolio) with 0.04%.
Union Pacific Corp.'s (UNP, Financial) earnings per share have grown 15.50% per year over the last five years.
According to the DCF calculator, the stock is overpriced by 11% at $169 per share. The price-earnings ratio is 21.08. The share price has been as high as $172.44 and as low as $126.37 in the last 52 weeks; it is currently 3.04% below its 52-week high and 32.31% above its 52-week low.
The railroad company has a market cap of $118.89 billion and an enterprise value of $139.95 billion.
With 0.74% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 0.60% and Pioneer Investments (Trades, Portfolio) with 0.41%.
The earnings per share of Altria Group Inc. (MO, Financial) have grown 17.50% per year over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 21% margin of safety at $57 per share. The price-earnings ratio is 15.61. The share price has been as high as $66.04 and as low as $42.40 in the last 52 weeks; it is currently 13.04% below its 52-week high and 35.45% above its 52-week low.
The manufacturer of cigarettes, pipe tobacco and smokeless tobacco products has a market cap of $107.65 billion and an enterprise value of $132.06 billion.
With 0.77% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Pioneer Investments with 0.31%, Tom Russo (Trades, Portfolio) with 0.28% and Simons’ firm with 0.12%.
The earnings per share of The Toronto-Dominion Bank (TD, Financial) have grown 11.30% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 27% margin of safety at $55 per share. The price-earnings ratio is 12.01. The share price has been as high as $62.0 and as low as $47.73 in the last 52 weeks; it is currently 12.37% below its 52-week high and 13.83% above its 52-week low.
The financial services company has a market cap of $98.93 billion and an enterprise value of $144.19 billion.
The company's largest guru shareholder is Simons’ firm with 0.38% of outstanding shares, followed by the Jeremy Grantham (Trades, Portfolio) with 0.09% and Pioneer Investments with 0.08%.
British American Tobacco PLC's (BTI, Financial) earnings per share have grown 27.60% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 45% margin of safety at $41.50 per share. The price-earnings ratio is 12.14. The share price has been as high as $60.81 and as low as $30.67 in the last 52 weeks; it is currently 31.39% below its 52-week high and 36.03% above its 52-week low.
The tobacco company has a market cap of $95.63 billion and an enterprise value of $155.32 billion.
With 0.09% of outstanding shares, Lee Ainslie (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 0.06% and Sarah Ketterer (Trades, Portfolio) with 0.04%.
The earnings per share of Gilead Sciences Inc. (GILD, Financial) have grown 5.20% per year over the last five years.
According to the DCF calculator, the stock is undervalued and is trading with a 45% margin of safety at $65 per share. The price-earnings ratio is 15.63. The share price has been as high as $79.61 and as low as $60.32 in the last 52 weeks; it is currently 18.34% below its 52-week high and 7.78% above its 52-week low.
The biopharmaceutical company has a market cap of $82.88 billion and an enterprise value of $80.26billion.
The company's largest guru shareholder is Dodge & Cox with 1.30% of outstanding shares, followed by the Simons’ firm with 0.42% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%.
Disclosure: I do not own any stocks mentioned.
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