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Tiziano Frateschi
Tiziano Frateschi
Articles (2155)  | Author's Website |

6 Undervalued Stocks Growing Earnings

Baidu makes the list

October 08, 2019 | About:

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 Tuesday, the following undervalued companies have grown their earnings per share over a five-year period.

HCA Healthcare Inc.'s (NYSE:HCA) earnings per share have grown 22.90% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 48% margin of safety at $116 per share. The price-earnings ratio is 11.33. The share price has been as high as $147.42 and as low as $110.31 in the last 52 weeks; it is currently 21.35% below its 52-week high and 5.11% above its 52-week low.

The American private hospital owner has a market cap of $40.30 billion and an enterprise value of $76.89 billion.

With 1.99% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Larry Robbins (Trades, Portfolio) with 1.48% and First Eagle Investment (Trades, Portfolio) with 0.69%.

The earnings per share of Ross Stores Inc. (NASDAQ:ROST) have grown 16.90% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with an 11.18% margin of safety at $108 per share. The price-earnings ratio is 24.30. The share price has been as high as $111.42 and as low as $75.91 in the last 52 weeks; it is currently 4.03% below its 52-week high and 40.86% above its 52-week low.

The discount retail company has a market cap of $39 billion and an enterprise value of $40.66 billion.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 3.18% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 1.23% and Daniel Loeb (Trades, Portfolio) with 0.45%.

Aflac Inc.'s (NYSE:AFL) earnings per share have grown 7% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 23.25% margin of safety at $52 per share. The price-earnings ratio is 12.48. The share price has been as high as $57.18 and as low as $41.45 in the last 52 weeks; it is currently 10.49% below its 52-week high and 23.47% above its 52-week low.

The company, which provides supplemental health insurance and life insurance, has a market cap of $38 billion.

With 0.21% of outstanding shares, John Rogers (Trades, Portfolio) is the company's largest guru shareholder, followed by the Smead Value Fund (Trades, Portfolio) with 0.15%, Pioneer Investments with 0.08% and Jeremy Grantham (Trades, Portfolio) with 0.04%.

The earnings per share of Baidu Inc. (NASDAQ:BIDU) have grown 11.50% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 46.19% margin of safety at $101 per share. The price-earnings ratio is 15. The share price has been as high as $215.27 and as low as $93.39 in the last 52 weeks; it is currently 51.54% below its 52-week high and 11.70% above its 52-week low.

The Chinese search engine operator has a market cap of $36.36 billion and an enterprise value of $28.99 billion.

The company's largest guru shareholder is Dodge & Cox with 2.37% of outstanding shares, followed by Sarah Ketterer (Trades, Portfolio) with 1.52% and David Herro (Trades, Portfolio) with 1.01%.

Energy Transfer LP's (ET) earnings per share have grown 35.30% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 46.53% margin of safety at $12.70 per share. The price-earnings ratio is 10.39. The share price has been as high as $17.75 and as low as $11.68 in the last 52 weeks; it is currently 27.49% below its 52-week high and 10.19% above its 52-week low.

The company, which operates in the Oil and Gas – Midstream industry, has a market cap of $33.40 billion and an enterprise value of $91.91 billion.

With 0.22% of outstanding shares, David Tepper (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.14% and Leon Cooperman (Trades, Portfolio) with 0.12%.

The earnings per share of Cognizant Technology Solutions Corp. (NASDAQ:CTSH) have grown 9.20% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 22.20% margin of safety at $60.18 per share. The price-earnings ratio is 16.67. The share price has been as high as $76.58 and as low as $56.73 in the last 52 weeks; it is currently 21.42% below its 52-week high and 6.08% above its 52-week low.

The information technology services provider has a market cap of $33.24 billion and an enterprise value of $31.86 billion.

The company's largest guru shareholder is Dodge & Cox with 3.12% of outstanding shares, followed by Al Gore (Trades, Portfolio) with 1.89%, Richard Pzena (Trades, Portfolio) with 1.34% and Grantham with 0.67%.

Disclosure: I do not own any stocks mentioned.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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