6 Stocks Boosting Earnings
Companies that are growing their earnings are often good investments because they can return a solid profit to investors.
According to GuruFocus' discounted cash flow calculator as of Jan. 28, the following undervalued companies have a high margin of safety and have grown their earnings per share over a five-year period.
Middleby
The Middleby Corp.'s (NASDAQ:MIDD) earnings per share have grown 16.60% per annum over the past five years
According to the DCF calculator, the stock is undervalued with a 32% margin of safety at $114.17 per share. The price-earnings ratio is 18.55. The share price has been as high as $142.98 and as low as $105.77 in the last 52 weeks; it is currently 21.27% below its 52-week high and 6.43% above its 52-week low.
The company, which provides a wide range of foodservice equipment, food preparation and packaging, has a market cap of $6.43 billion and an enterprise value of $8.29 billion.
With 1.99% of outstanding shares, Andreas Halvorsen (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.10%, Robert Olstein (Trades, Portfolio) with 0.06% and Pioneer Investments (Trades, Portfolio) with 0.05%.
Knight-Swift Transportation
The earnings per share of Knight-Swift Transportation Holdings Inc. (NYSE:KNX) have grown 27.80% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 30.63% margin of safety at $37.06 per share. The price-earnings ratio is 16. The share price has been as high as $39.37 and as low as $27.03 in the last 52 weeks; it is currently 4.75% below its 52-week high and 38.73% above its 52-week low.
The American full-truckload carrier has a market cap of $6.20 billion and an enterprise value of $7.25 billion.
The company's largest guru shareholder is NWQ Managers (Trades, Portfolio) with 0.59% of outstanding shares, followed by Louis Moore Bacon (Trades, Portfolio) with 0.12% and Pioneer Investments with 0.04%.
PVH
PVH Corp.'s (NYSE:PVH) earnings per share have grown 30.60% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 48.61% margin of safety at $94.95 per share. The price-earnings ratio is 10.59. The share price has been as high as $134.24 and as low as $67.41 in the last 52 weeks; it is currently 27.82% below its 52-week high and 43.76% above its 52-week low.
The clothing company has a market cap of $6.62 billion and an enterprise value of $11.10 billion.
The company's largest guru shareholder is Richard Pzena (Trades, Portfolio) with 6.80% of outstanding shares, followed by Simons' firm with 0.69%, Richard Snow (Trades, Portfolio) with 0.46% and Ray Dalio (Trades, Portfolio) with 0.26%.
Robert Half International
The earnings per share of Robert Half International Inc. (NYSE:RHI) have grown 10.30% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 43.43% margin of safety at $61.95 per share. The price-earnings ratio is 15.87. The share price has been as high as $69.08 and as low as $51.90 in the last 52 weeks; it is currently 9.47% below its 52-week high and 20.51% above its 52-week low.
The human resources consulting company has a market cap of $7.26 billion and an enterprise value of $7.22 billion.
The company's largest guru shareholder is Simons' firm with 0.40% of outstanding shares, followed by Pioneer Investments with 0.33%, Chuck Royce (Trades, Portfolio) with 0.14% and Joel Greenblatt (Trades, Portfolio) with 0.14%.
China Southern Airlines
China Southern Airlines Co. Ltd.'s (NYSE:ZNH) earnings per share have grown 16.70% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 41.79% margin of safety at $29.59 per share. The price-earnings ratio is 10.04. The share price has been as high as $52.34 and as low as $27.62 in the last 52 weeks; it is currently 42.03% below its 52-week high and 9.85% above its 52-week low.
The Chinese airline has a market cap of $6.85 billion and an enterprise value of $34.89 billion.
With 0.16% of outstanding shares, Simons' firm is the company's largest guru shareholder.
Gentex
The earnings per share of Gentex Corp. (NASDAQ:GNTX) have grown 15.10% per annum over the past five years.
According to the DCF calculator, the stock is undervalued with a 35.13% margin of safety at $30.82 per share. The price-earnings ratio is 18.47. The share price has been as high as $31.27 and as low as $19.55 in the last 52 weeks; it is currently 1.18% below its 52-week high and 58.06% above its 52-week low.
The company, which manufactures automotive parts and camera-based driver assistance systems, has a market cap of $7.80 billion and an enterprise value of $7.33 billion.
Some notable shareholders of the company are Royce with 0.81% of outstanding shares, Paul Tudor Jones (Trades, Portfolio) with 0.09% and Mario Gabelli (Trades, Portfolio) with 0.07%.
Disclosure: I do not own any stocks mentioned.
Read more here:
Kahn Brothers Trims Holdings of Merck, Citigroup
5 Predictable Stocks With a Margin of Safety
6 Cheap Stocks With Low Price-Sales Ratios
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
This article first appeared on GuruFocus.
