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.
Warning! GuruFocus has detected 5 Warning Signs with CHA. Click here to check it out.
The intrinsic value of CHA
Shares of China Telecom Corp. Ltd. (CHA) are trading around $52 per share. The discounted cash flow calculator gives the stock a fair value of $102.97 per share, suggesting it is undervalued with a 49% margin of safety.
The Chinese fixed-line operator has a GuruFocus profitability and growth rating of 6 out of 10. Its earnings per share have grown 0.10% over the last five years. 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 59% of companies in the Telecom Services industry.
Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 0.02% of outstanding shares.
Cognizant Technology Solutions Corp. (CTSH) is trading around $73 per share. The DCF calculator gives the stock a fair value of $77.14 per share, suggesting it has a 7% margin of safety.
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 five years. 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 79% of companies in the 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 (Trades, Portfolio) with 0.59% and Jeremy Grantham (Trades, Portfolio) with 0.58%.
Baxter International Inc. (BAX) is trading around $77 per share. The DCF calculator gives the stock a fair value of $32.1 per share, suggesting it is overpriced by 134%.
The medical products manufacturer has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 41.50% over the past decade. Analysts project a three-year to five-year earnings growth rate of 11.12%. The return on equity of 18.44% and return on assets of 9.78% are outperforming 58% of companies in the Medical Instruments and Supplies industry.
With 5.46% of outstanding shares, Daniel Loeb (Trades, Portfolio) is the company's largest guru shareholder, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.39% and Bill Nygren (Trades, Portfolio) with 0.84%.
Keurig Dr. Pepper Inc. (KDP) is trading around $27 per share. The DCF calculator gives the stock a fair value of $26.54 per share, suggesting it is fairly priced.
With a market cap of $37.75 billion, the beverage company has a GuruFocus profitability and growth rating of 4 out of 10. Its earnings per share have fallen 18.40% over the last 12 months. Analysts project a three-year to five-year earnings growth rate of 11.09%. The return on equity of 7.70% and return on assets of 3.15% are outperforming 78% of companies in the Beverages - Soft Drinks industry.
Simons' firm is the company's largest guru shareholder with 0.11% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.04%.
The Travelers Companies Inc. (TRV) is trading around $137 per share. The DCF calculator gives the stock a fair value of $122.03 per share, suggesting it is overpriced by 12%.
The insurance company has a GuruFocus profitability and growth rating of 4 out of 10. Its earnings per share have fallen 4% over the last five years. Analysts project a three-year to five-year earnings growth rate of 11.09%. The return on equity of 11.41% and return on assets of 2.53% are underperforming 51% of companies in the Insurance - Property and Casualty industry.
With 2.26% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Hotchkis & Wiley with 0.85% and First Eagle Investment (Trades, Portfolio) with 0.82%.
Activision Blizzard Inc. (ATVI) is trading around $47 per share. The DCF calculator gives the stock a fair value of $26.54 per share, suggesting it is undervalued with a 18% margin of safety.
The video game publisher has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have risen 3.40% over the last 12 months. Analysts project a three-year to five-year earnings growth rate of 7.58%. The return on equity of 17.55% and return on assets of 10.12% are outperforming 77% of companies in the Electronic Gaming & Multimedia industry.
Steve Mandel (Trades, Portfolio) is the company's largest guru shareholder with 2.05% of outstanding shares, followed by Philippe Laffont (Trades, Portfolio) with 1.18%, PRIMECAP Management (Trades, Portfolio) with 1.07% and Frank Sands (Trades, Portfolio) with 0.80%.
Disclosure: I do not own any stocks mentioned.
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This article first appeared on GuruFocus.
Warning! GuruFocus has detected 5 Warning Signs with CHA. Click here to check it out.
The intrinsic value of CHA
