5 Companies Boosting Earnings

Halliburton tops the list

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Jul 09, 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 Halliburton Co. (HAL, Financial) are trading around $23.03 per share. The discounted cash flow calculator gives the stock a fair value of $21.51 per share, suggesting it is overpriced by 7%.

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The oilfield services company has a GuruFocus profitability and growth rating of 5 out of 10. Analysts project a three-year to five-year earnings growth rate of 8.48%. The return on equity of 19.44% and return on assets of 6.79% are outperforming 69% of companies in the Oil and Gas - Services industry.

Dodge & Cox is the company's largest guru shareholder with 3.28% of outstanding shares, followed by Richard Pzena (Trades, Portfolio) with 1.42% and Sarah Ketterer (Trades, Portfolio) with 1.08%.

The Kroger Co. (KR, Financial) is trading around $21.70 per share. The DCF calculator gives the stock a fair value of $64.91 per share, suggesting it has a 66% margin of safety.

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The grocery store chain has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 16.50% over the last five years. Analysts project a three-year to five-year earnings growth rate of 5.99%. The return on equity of 23.61% and return on assets of 4.78% are outperforming 86% of companies in the Retail - Defensive industry.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.23% of outstanding shares, followed by the Smead Value Fund (Trades, Portfolio) with 0.15%, Lee Ainslie (Trades, Portfolio) with 0.07% and Jeff Ubben (Trades, Portfolio) ’s ValueAct Holdings with 0.05%.

Tenaris SA (TS, Financial) is trading around $26.40 per share. The DCF calculator gives the stock a fair value of $16.05 per share, suggesting it is overpriced by 64%.

The company, which produces steel pipes for the energy industry, has a GuruFocus profitability and growth rating of 6 out of 10. Analysts project a three-year to five-year earnings growth rate of 7.71%. While the return on equity of 7.64% is underperforming the sector, the return on assets of 6.15% is outperforming 67% of companies in the Oil and Gas - Services industry.

With 0.18% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.13%, NWQ Managers (Trades, Portfolio) with 0.11% and Steven Cohen (Trades, Portfolio) with 0.06%.

NetApp Inc. (NTAP, Financial) is trading around $60 per share. The DCF calculator gives the stock a fair value of $67.7 per share, suggesting it undervalued with a 7% margin of safety.

The company, which provides data storage products and services, has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 3% over the last five years. Analysts project a three-year to five-year earnings growth rate of 7.07%. The return on equity of 72.63% and return on assets of 13.10% are outperforming 88% of companies in the Computer Hardware industry.

With 13.73% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons’ firm with 2.77%, Pioneer Investments with 0.71% and Joel Greenblatt (Trades, Portfolio) with 0.12%.

CarMax Inc. (KMX, Financial) is trading around $88 per share. The DCF calculator gives the stock a fair value of $143.76 per share, suggesting it is undervalued with a 38% of margin of safety.

The company, which sells used and new cars, has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 15% over the last five years. Analysts project a three-year to five-year earnings growth rate of 10.86%. While the return on equity of 25.44% is outperforming the sector, the return on assets of 4.69% is underperforming 50% of companies in the Autos industry.

With 7.22% of outstanding shares, PRIMECAP Management is the company's largest guru shareholder, followed by Ruane Cunniff (Trades, Portfolio) with 6.89%, Chuck Akre (Trades, Portfolio) with 3.65% and Tom Gayner (Trades, Portfolio) with 2.96%.

Disclosure: I do not own any stocks mentioned.

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