5 Bargain Stocks Growing Earnings

Tech Data tops the list

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May 02, 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 per share over a five-year period.

Tech Data Corp.'s (TECD, Financial) earnings per share have grown 4.90% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 5.81% margin of safety at $105.77 per share. The price-earnings ratio is 12.02. The share price has been as high as $111.08 and as low as $66.93 in the last 52 weeks; it is currently 3.65% below its 52-week high and 59.91% above its 52-week low.

The technology products distributor has a market cap of $3.95 billion and an enterprise value of $4.56 billion.

With 0.13% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Joel Greenblatt (Trades, Portfolio) with 0.06% and Barrow, Hanley, Mewhinney & Strauss with 0.06%.

The earnings per share of Hexcel Corp. (HXL, Financial) have grown 11.60% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 5.63% margin of safety at $70.63 per share. The price-earnings ratio is 21.70. The share price has been as high as $73.42 and as low as $53.50 in the last 52 weeks; it is currently 3.36% below its 52-week high and 32.62% above its 52-week low.

The company, which manufactures composites for the aerospace and defense industry, has a market cap of $6.02 billion and an enterprise value of $7.15 billion.

With 0.82% of outstanding shares, Robert Karr (Trades, Portfolio) is the company's largest guru shareholder, followed by Steven Cohen (Trades, Portfolio) with 0.22%.

The earnings per share of The Toronto-Dominion Bank (TD, Financial) have grown 11.30% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 23.45% margin of safety at $56.65 per share. The price-earnings ratio is 12.62. The share price has been as high as $62 and as low as $47.73 in the last 52 weeks; it is currently 8.63% below its 52-week high and 18.69% above its 52-week low.

The Canadian bank has a market cap of $103.69 billion and an enterprise value of $148.79 billion.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.38% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.09% and Pioneer Investments (Trades, Portfolio) with 0.08%.

Southern Missouri Bancorp Inc.'s (SMBC, Financial) earnings per share have grown 11.20% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 20.04% margin of safety at $32.6 per share. The price-earnings ratio is 11.97. The share price has been as high as $41.49 and as low as $29.92 in the last 52 weeks; it is currently 19.21% below its 52-week high and 12.03% above its 52-week low.

The bank has a market cap of $312.48 million and an enterprise value of $248.27 million.

With 3.15% of outstanding shares, Chuck Royce (Trades, Portfolio) is the company's largest guru shareholder, followed by the Simons’ firm with 1.28% and Hotchkis & Wiley with 0.31%.

The earnings per share of CGI Inc. (GIB, Financial) have grown 18.30% per year over the last five years.

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According to the DCF calculator, the stock is undervalued by 7.76% at $71.55 per share. The price-earnings ratio is 23.50. The share price has been as high as $71.60 and as low as $57.35 in the last 52 weeks; it is currently 0.53% below its 52-week high and 24.18% above its 52-week low.

The IT services company has a market cap of $19.51 billion and an enterprise value of $20.81 billion.

The company's largest guru shareholder is Pioneer Investments with 0.07% of outstanding shares, followed by Ray Dalio (Trades, Portfolio) with 0.04%.

Disclosure: I do not own any stocks mentioned.

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