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5 Companies Expected to Boost Earnings

According to the GuruFocus All-in-One Screener, a Premium feature, as of Jan. 10, the following Guru-held companies are trading at a discount and have positive three- to five-year future earnings estimates.


Cummins Inc.

Shares of Cummins Inc. (NYSE:CMI) were trading around $173.52 per share on Jan.10.

The company, which manufactures diesel and natural gas engines, has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have risen 3.90% over the last five years.

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Analysts project a three-year to five-year earnings growth rate of 4.65%. The return on equity of 33.02% and return on assets of 12.89% are outperforming 92% of companies in the industrial products industry.

With 1.65% of outstanding shares, HOTCHKIS & WILEY is the company's largest guru shareholder, followed by First Eagle Investment (Trades, Portfolio) with 1.43% and Bill Nygren (Trades, Portfolio)'s Oakmark Fund with 1.12%.

Discover Financial Services

On Jan.10, Discover Financial Services (NYSE:DFS) was trading around $83.43 per share.

With a market cap of $26.15 billion, the banking services provider has a GuruFocus profitability and growth rating of 5 out of 10. Its earnings per share have risen 8.0% over the last five years.

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Analysts project a three-year to five-year earnings growth rate of 2.85%. The return on equity of 25.45% and return on assets of 2.68% are outperforming 55% of companies in the credit services industry.

PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder with 3.88% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 1.17%, HOTCHKIS & WILEY with 0.88% and Pioneer Investments (Trades, Portfolio) with 0.34%.

Fleetcor Technologies Inc.

Fleetcor Technologies Inc. (NYSE:FLT) was trading around $298.51 per share as of Jan.10.

With a market cap of $25.91 billion, the specialised payment services provider has a GuruFocus profitability and growth rating of 10 out of 10. Its earnings per share have climbed 21.80% over the last five years.

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Analysts project a three-year to five-year earnings growth rate of 18%. As of Jan.10, the return on equity of 26.45% and return on assets of 8.28% are outperforming 76% of companies in the software industry.

With 2.09% of outstanding shares, Spiros Segalas (Trades, Portfolio) is the company's largest guru shareholder, followed by Chase Coleman (Trades, Portfolio)'s Tiger Global Management with 1.99%, Ron Baron (Trades, Portfolio) with 0.28% and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.26%.

The Kroger Co.

The Kroger Co. (NYSE:KR) was trading around $28.44 per share as of Jan.10.

The American retailer has a market cap of $22.77 billion and a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have risen 16.50% over the last five years.

Analysts project a three-year to five-year earnings growth rate of 5.42%. The return on equity of 18.61% and return on assets of 3.78% are outperforming 58% of companies in the retail industry.

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With 0.55% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.09% and Jeff Auxier (Trades, Portfolio) with 0.05%.

Dollar Tree Inc.

Dollar Tree Inc. (NASDAQ:DLTR) was trading around $91.06 per share as of Jan.10.

With a market cap of $21.55 billion, the American discount retailer has a GuruFocus profitability and growth rating of 9 out of 10.

Analysts project a three-year to five-year earnings growth rate of 9.81%. The return on equity of -25.58% and return on assets of -9.03% are underperforming 93% of companies in the retail industry.

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With 2.15 % of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons' firm with 0.45%, Cohen's firm with 0.31%, Pioneer Investments (Trades, Portfolio) with 0.21%, Wallace Weitz (Trades, Portfolio) with 0.11% and Louis Moore Bacon (Trades, Portfolio) with 0.06%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.