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 Wednesday, the following undervalued companies have grown their earnings per share over a five-year period.
Baidu Inc.'s BIDU earnings per share have grown 11.55% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 46.17% margin of safety at $103 per share. The price-earnings ratio is 15.33. The share price has been as high as $49.56 and as low as $11.39 in the last 52 weeks; it is currently 49.56% below its 52-week high and 11.39% above its 52-week low.
The Chinese search engine has a market cap of $36.46 billion and an enterprise value of $29.09 billion.
With 2.37% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio) with 1.52% and David Herro (Trades, Portfolio) with 1.01%.
The earnings per share of Energy Transfer LP ET have grown 35.30% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 46.57% margin of safety at $12.66 per share. The price-earnings ratio is 10.35. The share price has been as high as $17.04 and as low as $11.68 in the last 52 weeks; it is currently 24.26% below its 52-week high and 10.50% above its 52-week low.
The company, which operates in the Oil and Gas – Midstream industry, has a market cap of $33.78 billion and an enterprise value of $91.89 billion.
The company's largest guru shareholder is David Tepper (Trades, Portfolio) with 0.22% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.14% and Leon Cooperman (Trades, Portfolio) with 0.12%.
Cognizant Technology Solutions Corp.'s CTSH earnings per share have grown 9.20% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 21.42% margin of safety at $60.78 per share. The price-earnings ratio is 16.84. The share price has been as high as $74.85 and as low as $56.73 in the last 52 weeks; it is currently 18.67% below its 52-week high and 7.31% above its 52-week low.
The IT services company has a market cap of $33.57 billion and an enterprise value of $32.19 billion.
With 3.12% of outstanding shares, Dodge & Cox is the company's largest guru shareholder, followed by Al Gore (Trades, Portfolio) with 1.89% and Richard Pzena (Trades, Portfolio) with 1.34%.
The earnings per share of CGI Inc. GIB have grown 18.30% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 5.95% margin of safety at $77.64 per share. The price-earnings ratio is 23.15. The share price has been as high as $80.59 and as low as $57.35 in the last 52 weeks; it is currently 3.66% below its 52-week high and 35.38% above its 52-week low.
The company, which provides IT services, has a market cap of $20.93 billion and an enterprise value of $22.38 billion.
The company's largest guru shareholder is Pioneer Investments (Trades, Portfolio) with 0.07% of outstanding shares, followed by Ray Dalio (Trades, Portfolio) with 0.03% and Joel Greenblatt (Trades, Portfolio) with 0.01%.
Southwest Airlines Co.'s LUV earnings per share have grown 36% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 56% margin of safety at $53 per share. The price-earnings ratio is 12.32. The share price has been as high as $58.77 and as low as $44.28 in the last 52 weeks; it is currently 10.97% below its 52-week high and 18.16% above its 52-week low.
The airline has a market cap of $28.61 billion and an enterprise value of $29.15 billion.
With 13.61% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Warren Buffett (Trades, Portfolio) with 9.98% and Barrow, Hanley, Mewhinney & Strauss with 0.21%.
The earnings per share of Centene Corp. CNC have grown 26.20% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 43% margin of safety at $48.75 per share. The price-earnings ratio is 16.04. The share price has been as high as $74.49 and as low as $41.62 in the last 52 weeks; it is currently 34.55% below its 52-week high and 17.12% above its 52-week low.
The company has a market cap of $20.16 billion and an enterprise value of $19.75 billion.
The company's largest guru shareholder is Andreas Halvorsen (Trades, Portfolio) with 4.03% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio) with 1.77%, the Vanguard Health Care Fund (Trades, Portfolio) with 1.44% and Daniel Loeb (Trades, Portfolio) with 0.72%.
Disclosure: I do not own any stocks mentioned.
Read more here:
- 5 Undervalued Stocks Expanding Book Value
- 6 Guru Stokcs Trading With Low Price-Earnings Ratios
- 6 Stocks Trading Below Peter Lynch Value
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
