5 Companies That Will Raise Earnings

Novo Nordisk on the list

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Apr 12, 2019
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According to the GuruFocus All-in-One Screener, the following companies are trading at a discount and have positive three- to five-year future earnings estimates.

Shares of Fomento Economico Mexicano SAB de CV (FMX) are trading around $95.76 per share. The discounted cash flow calculator gives the stock a fair value of $8.69 per share, suggesting it is overpriced by 1,002%.

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The soft drinks producer, has a GuruFocus profitability and growth rating of 6 out of 10. Its earnings per share have grown 3.60% over the last five years. Analysts project a three-year to five-year earnings growth rate of 14.86%. The return on equity of 7.60% and return on assets of 3.97% are outperforming 70% of companies in the Global Beverages - Brewers industry.

Ron Baron (Trades, Portfolio) is the company's largest guru shareholder with 0.05% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.02% and Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.01%.

Novo Nordisk A/S ADR (NVO) is trading around $50 per share. The DCF calculator gives the stock a fair value of $67.29 per share, suggesting it has a 24% margin of safety.

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GuruFocus rated the pharmaceutical products manufacturer's profitability and growth 9 out of 10. Its earnings per share have grown 8.60% over the past decade. Analysts project a three-year to five-year earnings growth rate of 67.18%. The return on equity of 79.65% and return on assets of 37.73% are outperforming 98% of companies in the Global Biotechnology industry.

Simons’ firm is the company's largest guru shareholder with 0.87% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.59%, Tom Gayner (Trades, Portfolio)’s Markel Corp. with 0.04% and Jeremy Grantham (Trades, Portfolio)’s GMO LLC with 0.04%.

Class-B shares of United Parcel Service Inc. (UPS) are trading around $114 per share. The DCF calculator gives the stock a fair value of $76.18 per share, suggesting it is overpriced by 48%.

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The provider of supply chain management solutions has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 7% over the past decade. Analysts project a three-year to five-year earnings growth rate of 8.61%. The return on equity of 222.11% and return on assets of 10.33% are outperforming 92% of companies in the Global Integrated Shipping and Logistics industry.

With 0.53% of outstanding shares, Bill Gates (Trades, Portfolio) is the company's largest guru shareholder followed by PRIMECAP Management (Trades, Portfolio) with 0.42% and Pioneer Investments (Trades, Portfolio) with 0.36%.

Starbucks Corp. (SBUX) is trading around $76 per share. The DCF calculator gives the stock a fair value of $64.05 per share, suggesting it is overpriced by 18%.

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The coffee retailer has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 12.60% over the last 12 months. Analysts project a three-year to five-year earnings growth rate of 11.15%. The return on equity of 118.88% and return on assets of 15.55% are outperforming 99% of companies in the Global Restaurants industry.

Bill Ackman (Trades, Portfolio) is the company's largest guru shareholder with 0.95% of outstanding shares, followed by Sands Capital Management’s Frank Sands (Trades, Portfolio) with 0.40% and Pioneer Investments (Trades, Portfolio) with 0.22%.

Gilead Sciences Inc. (GILD) is trading around $66 per share. The DCF calculator gives the stock a fair value of $118.49 per share, suggesting it has a 43% margin of safety.

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The biopharmaceutical company has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 17.20% over the last five years. Analysts project a three-year to five-year earnings growth rate of 15.62%. The return on equity of 25.5% and return on assets of 8.29% are outperforming 79% of companies in the Global Drug Manufacturers - Major industry.

With 1.30% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by the Simons’ firm with 0.42% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%.

Disclosure: I do not own any stocks mentioned.

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