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5 Guru Stocks Growing Earnings

- By Tiziano Frateschi

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, the following undervalued companies have grown their earnings per share over a five-year period.

United Parcel Service Inc.'s (UPS) earnings per share have grown 6.40% per year over the last five years.


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According to the DCF calculator, the class B stock is overpriced by 50% at $113 per share. The price-earnings ratio is 20.75. The share price has been as high as $125.09 and as low as $89.89 in the last 52 weeks; it is currently 8.60% below its 52-week high and 27.19% above its 52-week low.

The parcel delivery company has a market cap of $98.34 billion and an enterprise value of $116.06 billion.

With 0.53% of outstanding shares, Bill Gates (Trades, Portfolio)' trust is the company's largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 0.42% and Pioneer Investments (Trades, Portfolio) with 0.36%.

The earnings per share of Starbucks Corp. (SBUX) have grown 136.20% per year over the last five years.

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According to the DCF calculator, the stock is overpriced by 17% at $75 per share. The price-earnings ratio is 33.35. The share price has been as high as $75.08 and as low as $47.37 in the last 52 weeks; it is currently 0.07% below its 52-week high and 58.39% above its 52-week low.

The coffee chain has a market cap of $94 billion and an enterprise value of $98 billion.

With 0.95% of outstanding shares, Bill Ackman (Trades, Portfolio) is the company's largest guru shareholder, followed by Frank Sands (Trades, Portfolio) with 0.40%, Pioneer Investments with 0.22% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.17%.

The earnings per share of Dollar General Corp. (DG) have grown 14.40% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 16% margin of safety at $122 per share. The price-earnings ratio is 23.80. The share price has been as high as $123.50 and as low as $86.87 in the last 52 weeks; it is currently 0.74% below its 52-week high and 41.11% above its 52-week low.

The discount retailer has a market cap of $31.77 billion and an enterprise value of $34.44 billion.

The company's largest guru shareholder is Barrow, Hanley, Mewhinney & Strauss with 5.41% of outstanding shares, followed by Pioneer Investments with 0.61% and Diamond Hill Capital (Trades, Portfolio) with 0.12%.

Walgreens Boots Alliance Inc.'s (WBA) earnings per share have grown 15.50% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 23% margin of safety at $54.69 per share. The price-earnings ratio is 10.28. The share price has been as high as $86.31 and as low as $53.85 in the last 52 weeks; it is currently 36.64% below its 52-week high and 1.56% above its 52-week low.

The drugstore retail chain has a market cap of $50 billion and an enterprise value of $67.87 billion.

With 0.61% of outstanding shares, the Vanguard Health Care Fund (Trades, Portfolio) is the company's largest guru shareholder, followed by Gates' trust with 0.37% and Pioneer Investments with 0.28%.

The earnings per share of Energy Transfer LP (ET) have grown 35.30% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 31% margin of safety at $15.74 per share. The price-earnings ratio is 13.57. The share price has been as high as $19.19 and as low as $11.68 in the last 52 weeks; it is currently 17.98% below its 52-week high and 34.76% above its 52-week low.

The company, which operates natural gas gathering systems and intrastate pipeline systems, has a market cap of $40.47 billion and an enterprise value of $97.13 billion.

The company's largest guru shareholder is David Tepper (Trades, Portfolio) with 0.29% of outstanding shares, followed by Leon Cooperman (Trades, Portfolio) with 0.09% and Pioneer Investments with 0.08%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 6 Predictable Guru Stocks
  • 5 Energy Stocks in Gurus' Portfolios
  • 6 Cheap Stocks With Low Price-Sales Ratios



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This article first appeared on GuruFocus.