5 Companies Growing Earnings
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.
Pfizer Inc.'s (NYSE:PFE) earnings per share have grown 10.20% per year over the past five years.
According to the DCF calculator, the stock is overpriced by 42.22% at $37.38 per share. The price-earnings ratio is 17.08. The share price has been as high as $46.47 and as low as $33.97 in the last 52 weeks; it is currently 19.56% below its 52-week high and 10.04% above its 52-week low.
The pharmaceutical company has a market cap of $206.75 billion and an enterprise value of $240.89 billion.
With 0.79% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 0.40% and Pioneer Investments (Trades, Portfolio) with 0.22%.
The earnings per share of Starbucks Corp. (NASDAQ:SBUX) have grown 136.20% per year over the past five years.
According to the DCF calculator, the stock is overpriced by 12.54% at $90.35 per share. The price-earnings ratio is 32.03. The share price has been as high as $99.72 and as low as $54.10 in the last 52 weeks; it is currently 9.40% below its 52-week high and 67.01% above its 52-week low.
The coffee chain has a market cap of $108.15 billion and an enterprise value of $114.47 billion.
The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.38% of outstanding shares, followed by Bill Ackman (Trades, Portfolio) with 0.75%, Pioneer Investments with 0.15% and David Rolfe (Trades, Portfolio) with 0.05%.
United Parcel Service Inc.'s (NYSE:UPS) earnings per share have grown 6.4% per year over the past five years.
According to the DCF calculator, the stock is overpriced by 61.84% at $122.4 per share. The price-earnings ratio is 22.39. The share price has been as high as $124.94 and as low as $89.89 in the last 52 weeks; it is currently 2.04% below its 52-week high and 36.17% above its 52-week low.
The parcel delivery company has a market cap of $105.11 billion and an enterprise value of $126.22 billion.
With 0.53% of outstanding shares, Bill Gates (Trades, Portfolio)' foundation trust is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 0.42% and Pioneer Investments with 0.40%.
The earnings per share of Booking Holdings Inc. (NASDAQ:BKNG) have grown 12.50% per year over the past five years.
According to the DCF calculator, the stock is undervalued with a 21.36% margin of safety at $2,018 per share. The price-earnings ratio is 22.39. The share price has been as high as $2,019 and as low as $1,606 in the last 52 weeks; it is currently 0.04% below its 52-week high and 25.68% above its 52-week low.
The online travel agency has a market cap of $85.82 billion and an enterprise value of $88.17 billion.
The company's largest guru shareholder is Dodge & Cox with 3.39% of outstanding shares, followed by Steve Mandel (Trades, Portfolio) with 0.76% and Pioneer Investments with 0.65%.
British American Tobacco PLC's (NYSE:BTI) earnings per share have grown 27.60% per year over the past five years.
According to the DCF calculator, the stock is undervalued with a 51.11% margin of safety at $37 per share. The price-earnings ratio is 11.15. The share price has been as high as $49.40 and as low as $30.67 in the last 52 weeks; it is currently 25.49% below its 52-week high and 20.02% above its 52-week low.
The tobacco company has a market cap of $83.97 billion and an enterprise value of $141.30 billion.
With 0.10% of outstanding shares, Lee Ainslie (Trades, Portfolio) is the company's largest guru shareholder, followed by Sarah Ketterer (Trades, Portfolio) with 0.04%, Jeremy Grantham (Trades, Portfolio) with 0.04% and Simons' firm with 0.02%.
Disclosure: I do not own any stocks mentioned.
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This article first appeared on GuruFocus.
