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5 Undervalued Stocks Growing Earnings

Companies that are growing their earnings are often good investments because they can return a solid profit to investors. As of Monday, according to the discounted cash flow calculator, the following undervalued companies have grown their earnings per share over a five-year period.

IPG Photonics Corp. (IPGP)'s earnings per share have grown 19.30% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 23.08% margin of safety at $123 per share. The price-earnings ratio is 22.01. The share price has been as high as $182.17 and as low as $104.64 in the last 52 weeks; it is currently 32.68% below its 52-week high and 17.20% above its 52-week low.

The manufacturer of high-performance fiber lasers, fiber amplifiers and diode lasers has a market cap of $6.56 billion and an enterprise value of $5.56 billion.

With 3.11% of outstanding shares, First Eagle Investment (Trades, Portfolio) is the company's largest guru shareholder, followed by Parnassus Endeavor Fund (Trades, Portfolio) with 1.32% and Chuck Royce (Trades, Portfolio) with 0.39%.

The earnings per share of Alliance Data Systems Corp. (ADS) have grown 18.20% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 69.75% margin of safety at $123 per share. The price-earnings ratio is 7.38. The share price has been as high as $250.27 and as low as $120.77 in the last 52 weeks; it is currently 50.52% below its 52-week high and 2.54% above its 52-week low.

The company, which operates in the Credit Services industry, has a market cap of $6.27 billion and an enterprise value of $15.12.

With 6.94% of outstanding shares, Jeff Ubben (Trades, Portfolio)'s ValueAct Holdings LP is the company's largest guru shareholder, followed by Parnassus Endeavor Fund (Trades, Portfolio) with 2.06% and Cohen's Point72 Asset Management with 1.46%.

The earnings per share of Robert Half International Inc. (RHI) have grown 10.30% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 50.31% margin of safety at $53.89 per share. The price-earnings ratio is 14.13. The share price has been as high as $79.11 and as low as $52.33 in the last 52 weeks; it is currently 31.97% below its 52-week high and 2.85% above its 52-week low.

The company operating in the employment services industry has a market cap and an enterprise value of $6.33 billion.

The company's largest guru shareholder is Jim Simons' (Trades, Portfolio) Renaissance Technologies with 0.38% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.25%, Paul Tudor Jones (Trades, Portfolio) with 0.10% and Ron Baron (Trades, Portfolio) with 0.09%.

PVH Corp. (PVH)'s earnings per share have grown 30.60% per year over the last five years.

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According to the DCF calculator, the stock is undervalued with a 60% margin of safety at $76 per share. The price-earnings ratio is 8.54. The share price has been as high as $157.11 and as low as $67.41 in the last 52 weeks; it is currently 50.86% below its 52-week high and 14.54% above its 52-week low.

The company, which markets lifestyle brands, has a market cap of $5.68 billion and an enterprise value of $10.97 billion.

With 3.96% of outstanding shares, Richard Pzena (Trades, Portfolio)'s Pzena Investment Management is the company's largest guru shareholder, followed by the Simons' firm with 1.56% and Ray Dalio (Trades, Portfolio)'s Bridgewater Associates with 0.68%.

The earnings per share of Unum Group. (UNM) have grown 5.10% per year over the last five years.

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According to the DCF calculator, the stock is undervalued by 14.38% at $25.42 per share. The price-earnings ratio is 10.27. The share price has been as high as $40.76 and as low as $24.89 in the last 52 weeks; it is currently 37.46% below its 52-week high and 2.43% above its 52-week low.

The provider of income-protection insurance has a market cap of $5.30 billion and an enterprise value of $7.21 billion.

The company's largest guru shareholder is Donald Smith (Trades, Portfolio) with 2.65% of outstanding shares, followed by NWQ Managers (Trades, Portfolio) with 0.56%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.