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 as of Thursday, the following undervalued companies have grown their earnings per share over a five-year period.
The Home Depot Inc.'s (HD, Financial) earnings per share have grown 19.50% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 21% margin of safety at $230 per share. The price-earnings ratio is 22.45. The share price has been as high as $235.49 and as low as $158.09 in the last 52 weeks; it is currently 4.28% below its 52-week high and 42.58% above its 52-week low.
The home improvement retailer has a market cap of $246.86 billion and an enterprise value of $278.78 billion.
With 0.54% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Ken Fisher (Trades, Portfolio) with 0.44% and Spiros Segalas (Trades, Portfolio) with 0.18%.
The earnings per share of The Walt Disney Co. (DIS, Financial) have grown 17.20% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 19% margin of safety at $131.20 per share. The price-earnings ratio is 17.07. The share price has been as high as $147.15 and as low as $100.35 in the last 52 weeks; it is currently 10.32% below its 52-week high and 31.51% above its 52-week low.
The media and entertainment company has a market cap of $237.73 billion and an enterprise value of $295.12 billion.
The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.27% of outstanding shares, followed by Yacktman Asset Management (Trades, Portfolio) with 0.24%.
UnitedHealth Group Inc.'s (UNH, Financial) earnings per share have grown 18.90% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 19% margin of safety at $216 per share. The price-earnings ratio is 16.89. The share price has been as high as $287.94 and as low as $208.07 in the last 52 weeks; it is currently 21.86% below its 52-week high and 8.14% above its 52-week low.
The health insurance services provider has a market cap of $213.23 billion and an enterprise value of $240.98 billion.
With 1.05% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 0.70% and Andreas Halvorsen (Trades, Portfolio) with 0.51%.
The earnings per share of Comcast Corp. (CMCSA, Financial) have grown 21.30% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 38% margin of safety at $45 per share. The price-earnings ratio is 17.45. The share price has been as high as $47.27 and as low as $32.61 in the last 52 weeks; it is currently 3.30% below its 52-week high and 40.17% above its 52-week low.
The American cable operator has a market cap of $207.45 billion and an enterprise value of $312.43 billion.
The company's largest guru shareholder is Dodge & Cox with 1.42% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 0.54% and First Eagle Investment (Trades, Portfolio) with 0.51%.
Booking Holdings Inc.'s (BKNG, Financial) earnings per share have grown 12.50% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 22% margin of safety at $1,990.64 per share. The price-earnings ratio is 22.08. The share price has been as high as $2,081 and as low as $1,606 in the last 52 weeks; it is currently 4.38% below its 52-week high and 23.93% above its 52-week low.
The online travel agency has a market cap of $84.63 billion and an enterprise value of $86.97 billion.
With 3.39% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Steve Mandel (Trades, Portfolio) with 0.76%, Pioneer Investments with 0.65% and Yacktman Asset Management with 0.49%.
Disclosure: I do not own any stocks mentioned.
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