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.
Fiat Chrysler Automobiles NV's (FCAU, Financial) earnings per share have grown 53% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 39% margin of safety at $14 per share. The price-earnings ratio is 6.54. The share price has been as high as $20.43 and as low as $12.58 in the last 52 weeks; it is currently 29.78% below its 52-week high and 14.07% above its 52-week low.
The passenger vehicles manufacturer has a market cap of $28.12 billion and an enterprise value of $30.72 billion.
With 7.26% of outstanding shares, Chase Coleman (Trades, Portfolio) is the company's largest guru shareholder, followed by Bill Nygren (Trades, Portfolio) with 2.32% and Ruane Cunniff (Trades, Portfolio) with 2.31%.
The earnings per share of Southwest Airlines Co. (LUV, Financial) have grown 36% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 56% margin of safety at $51.89 per share. The price-earnings ratio is 12.19. The share price has been as high as $64.02 and as low as $44.28 in the last 52 weeks; it is currently 18.87% below its 52-week high and 17.30% above its 52-week low.
The airline has a market cap of $27.93 billion and an enterprise value of $27.24 billion.
With 13.56% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Warren Buffett (Trades, Portfolio) with 9.88% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.20%.
The earnings per share of AutoZone Inc. (AZO, Financial) have grown 11.90% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 17% margin of safety at $1,115.48 per share. The price-earnings ratio is 20.21. The share price has been as high as $1,135 and as low as $665.45 in the last 52 weeks; it is currently 0.73% below its 52-week high and 69.37% above its 52-week low.
The company, which sells aftermarket automotive parts, has a market cap of $27.36 billion and an enterprise value of $32.34 billion.
The company's largest guru shareholder is Tweedy Browne (Trades, Portfolio) with 0.49% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.18% and Joel Greenblatt (Trades, Portfolio) with 0.12%.
T. Rowe Price Group Inc.'s (TROW, Financial) earnings per share have grown 12% per year over the last five years.
According to the DCF calculator, the stock is undervalued with a 28% margin of safety at $109 per share. The price-earnings ratio is 14.34. The share price has been as high as $125.35 and as low as $84.59 in the last 52 weeks; it is currently 12.57% below its 52-week high and 29.55% above its 52-week low.
The asset management firm has a market cap of $25.68 billion and an enterprise value of $24.02 billion.
With 0.52% of outstanding shares, Simons’ firm is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.27% and Ron Baron (Trades, Portfolio) with 0.15%.
The earnings per share of Discover Financial Services (DFS, Financial) have grown 8% per year over the last five years.
According to the DCF calculator, the stock is undervalued by 50% at $80 per share. The price-earnings ratio is 9.67. The share price has been as high as $82.51 and as low as $54.36 in the last 52 weeks; it is currently 3.47% below its 52-week high and 46.52% above its 52-week low.
The banking services provider has a market cap of $26 billion and an enterprise value of $36.20 billion.
The company's largest guru shareholder is PRIMECAP Management with 3.61% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.62% and Hotchkis & Wiley with 1.31%.
Disclosure: I do not own any stocks mentioned.
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