U.S. markets open in 1 hour 32 minutes
  • S&P Futures

    3,428.50
    -3.75 (-0.11%)
     
  • Dow Futures

    28,151.00
    -31.00 (-0.11%)
     
  • Nasdaq Futures

    11,634.25
    -26.50 (-0.23%)
     
  • Russell 2000 Futures

    1,612.70
    -2.10 (-0.13%)
     
  • Crude Oil

    41.00
    -0.70 (-1.68%)
     
  • Gold

    1,918.50
    +3.10 (+0.16%)
     
  • Silver

    25.03
    +0.05 (+0.20%)
     
  • EUR/USD

    1.1854
    +0.0025 (+0.21%)
     
  • 10-Yr Bond

    0.7970
    0.0000 (0.00%)
     
  • Vix

    30.02
    +0.84 (+2.88%)
     
  • GBP/USD

    1.3056
    +0.0110 (+0.85%)
     
  • USD/JPY

    104.8520
    -0.6180 (-0.59%)
     
  • BTC-USD

    12,322.84
    +1,265.83 (+11.45%)
     
  • CMC Crypto 200

    247.30
    +8.39 (+3.51%)
     
  • FTSE 100

    5,821.53
    -67.69 (-1.15%)
     
  • Nikkei 225

    23,639.46
    +72.42 (+0.31%)
     

5 Guru Stocks Boosting Earnings

GuruFocus.com

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. 14, the following undervalued companies have a high margin of safety and have also grown their earnings per share over a five-year period.


PACCAR

PACCAR Inc.'s (NASDAQ:PCAR) earnings per share have grown 8.10% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 49.90% margin of safety at $78 per share. The price-earnings ratio is 11.2. The share price has been as high as $83.41 and as low as $58.66 in the last 52 weeks; it is currently 6.41% below its 52-week high and 33.07% above its 52-week low.

f6bdcc0c16d2b5f01d1d5c0c207708ef.png
f6bdcc0c16d2b5f01d1d5c0c207708ef.png

The company, which manufactures medium- and heavy-duty commercial vehicles, has a market cap of $27 billion and an enterprise value of $33.08 billion.

With 0.42% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.32%.

AutoZone

The earnings per share of AutoZone Inc. (NYSE:AZO) have grown 13.60% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 21.41% margin of safety at $1,120 per share. The price-earnings ratio is 17.84. The share price has been as high as $1,274.41 and as low as $803.28 in the last 52 weeks; it is currently 11.46% below its 52-week high and 40.47% above its 52-week low.

d4d19a2b94aa9d40295bb58c8690d204.png
d4d19a2b94aa9d40295bb58c8690d204.png

The company, which provides aftermarket automotive parts, tools and accessories, has a market cap of $26.62 billion and an enterprise value of $34.49 billion.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.72% of outstanding shares, followed by Tweedy Browne (Trades, Portfolio) with 0.44% and Joel Greenblatt (Trades, Portfolio) with 0.08%.

Centene

Centene Corp.'s (NYSE:CNC) earnings per share have grown 26.20% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 31.05% margin of safety at $63.40 per share. The price-earnings ratio is 19.63. The share price has been as high as $69.25 and as low as $41.62 in the last 52 weeks; it is currently 8.44% below its 52-week high and 52.31% above its 52-week low.

39f064d98bdaca66bb12e23cfdd5d9dc.png
39f064d98bdaca66bb12e23cfdd5d9dc.png

The health care plans provider has a market cap of $26.23 billion and an enterprise value of $26.35 billion.

The company's largest guru shareholder is Andreas Halvorsen (Trades, Portfolio) with 3.56% of outstanding shares, followed by Lee Ainslie (Trades, Portfolio) with 2.09% and the Vanguard Health Care Fund (Trades, Portfolio) with 1.32%.

Credicorp

The earnings per share of Credicorp Ltd. (NYSE:BAP) have grown 20.40% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 29.92% margin of safety at $210 per share. The price-earnings ratio is 13.16. The share price has been as high as $252.49 and as low as $199.83 in the last 52 weeks; it is currently 16.21% below its 52-week high and 5.87% above its 52-week low.

027527492cb7d2a2072246bec802d047.png
027527492cb7d2a2072246bec802d047.png

The company, which provides trade finance, corporate finance and leasing services, has a market cap of $16.87 billion and an enterprise value of $8.75 billion.

The company's largest guru shareholder is Al Gore (Trades, Portfolio) with 1.70% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 1.43% and Sarah Ketterer (Trades, Portfolio) with 0.40%.

Magna International

Magna International Inc.'s (NYSE:MGA) earnings per share have grown 17.80% per annum over the past five years.

According to the DCF calculator, the stock is undervalued with a 9% margin of safety at $53.6 per share. The price-earnings ratio is 9.58. The share price has been as high as $57.09 and as low as $42.51 in the last 52 weeks; it is currently 7.06% below its 52-week high and 24.82% above its 52-week low.

d3bcf2bb80673c5bdda48f67e2c83cb1.png
d3bcf2bb80673c5bdda48f67e2c83cb1.png

The company, which operates in the vehicles and parts industry, has a market cap of $16.23 billion and an enterprise value of $21.15 billion.

Some notable shareholders of the company are Pioneer Investments with 0.11% of outstanding shares, Greenblatt with 0.04% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.03%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 6 Stocks Trading WIth Low Price-Sales Ratios

  • 6 Cheap Stocks Trading at 52-Week Highs

  • 5 Health Care Stocks Gurus Are Buying



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.