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6 Companies 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 over a five-year period.


The earnings per share of Express Scripts Holding Co. (ESRX) have grown 34% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 50% margin of safety at $101 per share. The price-earnings ratio is 11.85. The stock price has been as high as $101.71 and as low as $61.30 in the last 52 weeks; it is currently 0.24% below its 52-week high and 65.53% above its 52-week low.

The pharmacy benefit management company, which provides health care management and administration services, has a market cap of $57.21 billion and an enterprise value of $68.51 billion.

Express Scripts' largest guru shareholder is Dodge & Cox with 7.08% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.4%, Larry Robbins (Trades, Portfolio) with 1.53%, David Abrams (Trades, Portfolio) with 0.57% and Richard Pzena (Trades, Portfolio) with 0.54%.

Bank Bradesco SA's (BBDO) earnings per share have grown 10% 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 17% margin of safety at $8.9 per share. The price-earnings ratio is 14.25. The stock price has been as high as $13.09 and as low as $5.49 in the last 52 weeks; it is currently 32.01% below its 52-week high and 62.11% above its 52-week low.

The Brazilian bank has a market cap of $59.57 billion and an enterprise value of $102.16 billion.

The earnings per share of FedEx Corp. (FDX) have grown 16% 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 12% margin of safety at $229 per share. The price-earnings ratio is 12.95. The stock price has been as high as $274.66 and as low as $207.90 in the last 52 weeks; it is currently 16.62% below its 52-week high and 10.15% above its 52-week low.

The courier company has a market cap of $60.35 billion and an enterprise value of $74.92 billion.

With 5.73% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 4.7%, Bill Gates (Trades, Portfolio)' foundation with 1.15% and Mason Hawkins (Trades, Portfolio)' Southeastern Asset Management with 0.97%.

TJX Companies Inc.'s (TJX) earnings per share have grown 9% 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 12% margin of safety at $48.85 per share. The price-earnings ratio is 19.94. The stock price has been as high as $56.64 and as low as $36.31 in the last 52 weeks; it is currently 13.75% below its 52-week high and 34.52% above its 52-week low.

The retailer of apparel and home fashions has a market cap of $60.45 billion and an enterprise value of $59.97 billion.

With 1.32% of outstanding shares, PRIMECAP Management is the company's largest guru shareholder, followed by Diamond Hill Capital (Trades, Portfolio) with 0.56%, Ruane Cunniff (Trades, Portfolio) with 0.49%, Pioneer Investments (Trades, Portfolio) with 0.32% and Lee Ainslie (Trades, Portfolio) with 0.07%.

The earnings per share of CSX Corp. (CSX) have grown 9% 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 47% margin of safety at $73 per share. The price-earnings ratio is 9.84. The stock price has been as high as $76.24 and as low as $48.43 in the last 52 weeks; it is currently 4.74% below its 52-week high and 49.97% above its 52-week low.

The railroad company has a market cap of $61.33 billion and an enterprise value of $73.84 billion.

CSX's largest guru shareholder is Steve Mandel (Trades, Portfolio) with 1.12% of outstanding shares, followed by PRIMECAP Management with 0.21%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.1% and Joel Greenblatt (Trades, Portfolio) with 0.04%.

Canadian National Railway Co.'s (CNI) earnings per share have grown 18% 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 19% margin of safety at $85.82 per share. The price-earnings ratio is 14.69. The stock price has been as high as $91.90 and as low as $70.59 in the last 52 weeks; it is currently 6.62% below its 52-week high and 21.58% above its 52-week low.

The company, which operates in the transportation sector, has a market cap of $62.5 billion and an enterprise value of $71.18 billion.

With 2.35% of outstanding shares, Gates' foundation is the company's largest guru shareholder, followed by Simons' firm with 0.09%, Ray Dalio ( Trades , Portfolio ) with 0.05% and Steven Cohen (Trades, Portfolio) with 0.05%.

Disclosure: I do not own any stocks mentioned in this article.

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This article first appeared on GuruFocus.


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