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.
Gilead Sciences Inc.'s (GILD, Financial) earnings per share have grown 15.62% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 45% margin of safety at $65.43 per share. The price-earnings ratio is 15.73. The share price has been as high as $79.61 and as low as $60.32 in the last 52 weeks; it is currently 17.81% below its 52-week high and 8.47% above its 52-week low.
The company, which develops therapies to treat life-threatening infectious diseases, has a market cap of $83.42 billion and an enterprise value of $80.80 billion.
With 1.30% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.42% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%.
The earnings per share of Booking Holdings Inc. (BKNG, Financial) have grown 10.35% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 22% margin of safety at $1,846.23 per share. The price-earnings ratio is 22.15. The share price has been as high as $2,201.84 and as low as $1,606.27 in the last 52 weeks; it is currently 16.15% below its 52-week high and 14.94% above its 52-week low.
The online travel agency has a market cap of $83.10 billion and an enterprise value of $85.47 billion.
With 2.58% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Frank Sands (Trades, Portfolio) with 1.01% and Chase Coleman (Trades, Portfolio) with 1%.
The earnings per share of Equinor ASA (EQNR, Financial) have grown 6.85% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 6% margin of safety at $23.55 per share. The price-earnings ratio is 10.46. The share price has been as high as $28.93 and as low as $19.95 in the last 52 weeks; it is currently 20.19% below its 52-week high and 15.71% above its 52-week low.
The integrated oil and gas company has a market cap of $77.04 billion and an enterprise value of $88.84 billion.
The company's largest guru shareholder is Simons’ firm with 0.28% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.05% and Leucadia National (Trades, Portfolio) with 0.01%.
BlackRock Inc.'s (BLK) earnings per share have grown 8.26% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 26% margin of safety at $460 per share. The price-earnings ratio is 17.44. The share price has been as high as $557 and as low as $360.79 in the last 52 weeks; it is currently 18.88% below its 52-week high and 25.24% above its 52-week low.
The investment management company has a market cap of $71.85 billion and an enterprise value of $70.48 billion.
With 1.14% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Tom Gayner (Trades, Portfolio) with 0.12% and Fisher with 0.08%.
The earnings per share of Bank Bradesco SA (BBD, Financial) have grown 9.60% per year over the last five years.
According to the DCF calculator, the stock is undervalued by 26% at $8.70 per share. The price-earnings ratio is 15.54. The share price has been as high as $10.46 and as low as $5.41 in the last 52 weeks; it is currently 14.46% below its 52-week high and 65.36% above its 52-week low.
The Brazilian bank has a market cap of $68.57 billion and an enterprise value of $69.72 billion.
The company's largest guru shareholder is Fisher with 0.52% of outstanding shares, followed by Ken Heebner (Trades, Portfolio) with 0.21% and Pioneer Investments with 0.03%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 6 Companies Growing Book Value
- 6 Guru Stocks With Predictable Business
- 5 Health Care Stocks in Gurus' Portfolios
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