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5 Companies Growing Earnings

- By Tiziano Frateschi

According to the GuruFocus All-in-One Screener, the following stocks are trading at a discount and have positive three- to five-year future earnings estimates.


PTC Inc. (PTC) is trading around $91 per share. The discounted cash flow calculator gives the stock a fair value of $5.35, suggesting it overpriced by 1,574%.

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The software developer has a GuruFocus profitability and growth rating of 5 out of 10. Its earnings per share have not changed over the last five years. Analysts project a three-year to five-year earnings growth rate of 34.07%. The return on equity of 6.10% and return on assets of 2.47% are underperforming 52% of companies in the Global Software - Application industry.

Jana Partners (Trades, Portfolio) is the company's largest guru shareholder with 0.36% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.29% and Pioneer Investments (Trades, Portfolio) with 0.16%.

Concho Resources Inc. (CXO) is trading around $111 per share. The DCF calculator gives the stock a fair value of $149.39, suggesting it has a 28% margin of safety at current prices.

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GuruFocus gave the oil and natural gas producer a profitability and growth rating of 6 out of 10. Its earnings per share have not changed over the past decade. Analysts project a three-year to five-year earnings growth rate of 34%. The return on equity of 17.57% and return on assets of 12.11% are outperforming 79% of companies in the Global Oil and Gas E&P industry.

Dodge & Cox is the company's largest guru shareholder with 1.94% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 1.12% and Steven Cohen (Trades, Portfolio) with 0.41%.

Lumber Liquidators Holdings Inc. (LL) is trading around $10.55 per share.

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The company, which sells hardwood flooring, has a GuruFocus profitability and growth rating of 5 out of 10. Its earnings per share have not changed over the past decade. Analysts project a three-year to five-year earnings growth rate of 30%. The return on equity of -28.89% and return on assets of -12.45% are underperforming 85% of companies in the Global Home Improvement Stores industry.

With 2.16% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons' firm with 1.60% and Barrow, Hanley, Mewhinney & Strauss with 0.91%.

Schlumberger Ltd. (SLB) is trading around $43 per share. The DCF calculator gives the stock a fair value of $16.37, suggesting it is overpriced by 161%.

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The company, which provides services to the oil and gas industry, has a GuruFocus profitability and growth rating of 5 out of 10. Its earnings per share have not changed over the last 12 months. Analysts project a three-year to five-year earnings growth rate of 25.24%. The return on equity of 5.84% and return on assets of 3.02% are underperforming 52% of companies in the Global Oil and Gas Equipment and Services industry.

Dodge & Cox is the company's largest guru shareholder with 2.99% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 2.02% and Barrow, Hanley, Mewhinney & Strauss with 1.38%.

The Interpublic Group of Companies Inc. (IPG) is trading around $21.12 per share. The DCF calculator gives the stock a fair value of $37.13, suggesting it has a 43% margin of safety.

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The advertising and marketing services company has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 17.90% over the last five years. Analysts project a three-year to five-year earnings growth rate of 20.29%. The return on equity of 28.38% and return on assets of 4.66% are outperforming 63% of companies in the Global Advertising Agencies industry.

With 4.18% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by Pioneer Investments with 2.05%, John Rogers (Trades, Portfolio) with 1.67% and Hotchkis & Wiley with 0.70%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.