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6 Companies Growing Earnings Per Share

- By Tiziano Frateschi

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


Shares of Schlumberger Ltd. (SLB) are trading around $44 per share. The discounted cash flow calculator gives the stock a fair value of $16.47 per share, suggesting it is overpriced by 172%.

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The company, which provides oilfield services, 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 25.94%. 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%.

CPNC Financial Services Group Inc. (PNC) is trading around $127 per share. The DCF calculator gives the stock a fair value of $194.87 per share, suggesting it has a 35% margin of safety.

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GuruFocus rated the bank holding company's profitability and growth 4 out of 10. Its earnings per share have grown 8.70% over the past decade. Analysts project a three-year to five-year earnings growth rate of 6.30%. The return on equity of 10.67% and return on assets of 1.39% are outperforming 58% of companies in the Global Banks - Regional - U.S. industry.

Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder with 1.82% of outstanding shares, followed by the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.35%, Diamond Hill Capital (Trades, Portfolio) with 0.26% and Pioneer Investments (Trades, Portfolio) with 0.16%.

China Telecom Corp. Ltd. (CHA) is trading around $55 per share. The DCF calculator gives the stock a fair value of $77.66 per share, suggesting it has a 21% margin of safety.

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The provider of wireline and mobile telecommunications services has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 2% over the past decade. Analysts project a three-year to five-year earnings growth rate of 7.81%. The return on equity of 6.37% and return on assets of 3.23% are underperforming 57% of companies in the Global Telecom Services industry.

With 0.02% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder.

Cognizant Technology Solutions Corp. (CTSH) is trading around $73.85 per share. The DCF calculator gives the stock a fair value of $77.14 per share, suggesting it has a 4% margin of safety.

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The IT services provider has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 9.20% over the last 12 months. Analysts project a three-year to five-year earnings growth rate of 10.80%. The return on equity of 19.20% and return on assets of 13.78% are outperforming 80% of companies in the Global Information Technology Services industry.

Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder with 1.32% of outstanding shares, followed by Pioneer Investments with 0.60% and Jeremy Grantham (Trades, Portfolio) with 0.58%.

Southwest Airlines Co. (LUV) is trading around $52.41 per share. The DCF calculator gives the stock a fair value of $122.41 per share, suggesting it has a 57% margin of safety.

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The airline has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 36% over the last five years. Analysts project a three-year to five-year earnings growth rate of 7.65%. The return on equity of 25.02% and return on assets of 9.47% are outperforming 84% of companies in the Global Airlines industry.

With 13.35% of outstanding shares, PRIMECAP Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Buffett with 9.92% and Barrow, Hanley, Mewhinney & Strauss with 0.42%.

Royal Caribbean Cruises Ltd. (RCL) is trading around $116 per share. The DCF calculator gives the stock a fair value of $244.26 per share, suggesting it has a 53% margin of safety.

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The global cruise line has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 32.90 % over the last five years. Analysts project a three-year to five-year earnings growth rate of 11.52%. The return on equity of 16.57% and return on assets of 7.24% are outperforming 70% of companies in the Global Leisure industry.

PRIMECAP Management is the largest guru shareholder of the company with 4.59% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 1.31%, Steven Cohen (Trades, Portfolio) with 0.35%, John Rogers (Trades, Portfolio) with 0.32% and Ken Heebner (Trades, Portfolio) with 0.27%.

Disclosure: I do not own any stocks mentioned.

Read more here:

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  • 6 Poorly Performing Stocks in Gurus' Portfolios
  • 5 High-Yielding Guru Stocks


This article first appeared on GuruFocus.