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.
Novo Nordisk A/S's (NVO, Financial) earnings per share have grown 12.20% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 22% margin of safety at $51 per share. The price-earnings ratio is 21.43. The share price has been as high as $52.83 and as low as $41.23 in the last 52 weeks; it is currently 3.54% below its 52-week high and 23.60% above its 52-week low.
The company, which provides diabetes care products, has a market cap of $122.14 billion and an enterprise value of $121.43 billion.
With 0.90% of outstanding shares, Jim Simons (Trades, Portfolio)’ Renaissance Technologies is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.61% and Jeremy Grantham (Trades, Portfolio) with 0.05%.
The earnings per share of Union Pacific Corp. (UNP, Financial) have grown 15.50% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 12% margin of safety at $166.96 per share. The price-earnings ratio is 20.41. The share price has been as high as $180.02 and as low as $128.08 in the last 52 weeks; it is currently 7.24% below its 52-week high and 30.38% above its 52-week low.
The railroad has a market cap of $118.20 billion and an enterprise value of $142.19 billion.
With 0.59% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 0.53% and Steve Mandel (Trades, Portfolio) with 0.47%.
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 24% margin of safety at $56.6 per share. The price-earnings ratio is 12.24. The share price has been as high as $62 and as low as $47.73 in the last 52 weeks; it is currently 8.71% below its 52-week high and 18.58% above its 52-week low.
The Canadian bank has a market cap of $104.17 billion and an enterprise value of $36.68 billion.
The company's largest guru shareholder is Simons’ firm with 0.28% of outstanding shares, followed by Grantham with 0.13% and Pioneer Investments (Trades, Portfolio) with 0.05%.
Altria Group Inc.'s (MO, Financial) earnings per share have grown 17.50% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 21% margin of safety at $50.80 per share. The price-earnings ratio is 15.51. The share price has been as high as $66.04 and as low as $42.40 in the last 52 weeks; it is currently 22.99% below its 52-week high and 19.95% above its 52-week low.
The tobacco company has a market cap of $95.15 billion and an enterprise value of $120.97 billion.
With 0.30% of outstanding shares, Pioneer Investments is the company's largest guru shareholder, followed by Tom Russo (Trades, Portfolio) with 0.27% and Barrow, Hanley, Mewhinney & Strauss with 0.06%.
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 by 48% at $66.36 per share. The price-earnings ratio is 14.65. The share price has been as high as $79.61 and as low as $60.32 in the last 52 weeks; it is currently 16.64% below its 52-week high and 10.01% above its 52-week low.
The company, which develops therapies to treat life-threatening infectious diseases, has a market cap of $84.38 billion and an enterprise value of $83.19 billion.
The company's largest guru shareholder is Dodge & Cox with 1.34% of outstanding shares, followed by Simons’ firm with 0.64% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.28%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Guru Stocks Growing Book Value
- Largest Insider Trades of the Week
- 6 Guru Stocks With Negative Returns
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