5 Companies Growing Earnings

Chipmakers Taiwan Semiconductor, Intel top the list

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Sep 19, 2019
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According to the GuruFocus All-in-One Screener, while most of the following companies are trading at a discount, all have positive three- to five-year future earnings estimates.

Shares of Taiwan Semiconductor Manufacturing Co. (TSM, Financial) are trading around $45 per share. The discounted cash flow calculator gives the stock a fair value of $44.22, suggesting it is fairly priced.

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The semiconductor chip manufacturer has a GuruFocus profitability and growth rating of 8 out of 10. Analysts project a three-year to five-year earnings growth rate of 2.67%. The return on equity of 20.51% and return on assets of 15.61% are outperforming 61% of companies in the semiconductors industry.

With 0.67% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.14% and First Eagle Investment (Trades, Portfolio) with 0.20%.

Intel Corp. (INTC, Financial) is trading around $51.78 per share. The DCF calculator gives the stock a fair value of $69.32, suggesting it has a 25.30% margin of safety.

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The chipmaker has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 11.40% over the last five years. Analysts project a three-year to five-year earnings growth rate of 7.24%. The return on equity of 26.92% and return on assets of 15.37% are outperforming 67% of companies in the semiconductors industry.

Fisher is the company's largest guru shareholder with 0.60% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 054%, Chris Davis (Trades, Portfolio) with 0.17% and Bill Nygren (Trades, Portfolio) with 0.15%.

Wells Fargo & Co. (WFC, Financial) is trading around $49 per share. The DCF calculator gives the stock a fair value of $97.74, suggesting it has a 50% margin of safety.

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The bank has a GuruFocus profitability and growth rating of 3 out of 10. Its earnings per share have risen 1.30% over the last five years. Analysts project a three-year to five-year earnings growth rate of 6.30%. The return on equity of 11.29% and return on assets of 1.28% are outperforming 65% of the companies in the banking industry.

With 9.30% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 1.90% and PRIMECAP Management with 1.15%.

Comcast Corp. (CMCSA, Financial) is trading around $46.76 per share. The DCF calculator gives the stock a fair value of $74.59, suggesting it is undervalued with a 37.31% margin of safety.

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The cable company has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 21.30% over the last five years. Analysts project a three-year to five-year earnings growth rate of 1,611.87%. The return on equity of 16.51% and return on assets of 5.22% are outperforming 55% of companies in the communication services industry.

With 1.42% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 0.54%, First Eagle Investment with 0.51% and First Pacific Advisors (Trades, Portfolio) with 0.17%.

Pfizer Inc. (PFE, Financial) is trading around $36.49 per share. The DCF calculator gives the stock a fair value of $26.28, suggesting it is overpriced by 38%.

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The pharmaceutical company has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 10.20% over the last five years. Analysts project a three-year to five-year earnings growth rate of 4.82%. The return on equity of 19.59% and return on assets of 7.87% are underperforming 54% of companies in the drug manufacturers industry.

With 0.79% of outstanding shares, Fisher is the company's largest guru shareholder, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 0.40% and Pioneer Investments (Trades, Portfolio) with 0.22%.

Disclosure: I do not own any stocks mentioned.

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