5 Companies Boosting Earnings

Apple tops the list

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Jun 05, 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 Apple Inc. (AAPL) are trading around $179.65 per share. The discounted cash flow calculator gives the stock a fair value of $338.49 per share, suggesting it is undervalued with a 47% margin of safety.

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The company, which designs consumer electronic devices, has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 14.30% over the last five years. Analysts project a three-year to five-year earnings growth rate of 8.35%. The return on equity of 49.91% and return on assets of 15.90% are outperforming 94% of companies in the Consumer Electronics industry.

Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway is the company's largest guru shareholder with 5.42% of outstanding shares followed by Ken Fisher (Trades, Portfolio) with 0.28% and Pioneer Investments (Trades, Portfolio) with 0.22%.

JPMorgan Chase & Co. (JPM) is trading around $109 per share. The DCF calculator gives the stock a fair value of $229.43 per share, suggesting it has a 52% margin of safety.

The American financial institution has a GuruFocus profitability and growth rating of 3 out of 10. Its earnings per share have grown 9.20% over the last five years. Analysts project a three-year to five-year earnings growth rate of 6.40%. The return on equity of 12.11% and return on assets of 1.25% are outperforming 64% of companies in the Banks - Global industry.

Buffett is the company's largest guru shareholder with 1.83% of outstanding shares, followed by Dodge & Cox with 0.77% and PRIMECAP Management (Trades, Portfolio) with 0.71%.

The Walt Disney Co. (DIS) is trading around $134.82 per share. The DCF calculator gives the stock a fair value of $189.23 per share, suggesting it has a 30% margin of safety.

The company has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 17.20% over the past decade. Analysts project a three-year to five-year earnings growth rate of 6.72%. The return on equity of 24.05% and return on assets of 11.05% are outperforming 89% of companies in the Media - Diversified industry.

With 0.25% of outstanding shares, Yacktman Asset Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.20% and PRIMECAP Management (Trades, Portfolio) with 0.18%.

UnitedHealth Group Inc. (UNH) is trading around $240.76 per share. The DCF calculator gives the stock a fair value of $260.09 per share, suggesting it has a 8.90% margin of safety.

With a market cap of $232 billion, the health insurance services provider has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 18.90% the last five years. Analysts project a three-year to five-year earnings growth rate of 12.08%. The return on equity of 25.13% and return on assets of 8.14% are outperforming 64% of companies in the Health Care Plans industry.

Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder with 1.04% of outstanding shares, followed by Dodge & Cox with 0.66% and with 0.39%.

The Home Depot Inc. (HD) is trading around $194.11 per share. The DCF calculator gives the stock a fair value of $282.41 per share, suggesting it is undervalued with a 31% margin of safety.

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The home improvement specialty retailer has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 19.50% over the last five years. Analysts project a three-year to five-year earnings growth rate of 9.61%. The return on equity of 5,643.22% and return on assets of 24.04% are outperforming 96% of companies in the Home Improvement Stores industry.

With 0.48% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Fisher with 0.43% and Spiros Segalas (Trades, Portfolio) with 0.22%.

Disclosure: I do not own any stocks mentioned.

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