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6 Stocks With a Margin of Safety and Positive Earnings Growth Estimates

- By Tiziano Frateschi

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


Keurig Dr. Pepper Inc. (KDP) is trading around $25 per share. The discounted cash flow calculator gives the stock a fair value of $814.18 per share, suggesting it has a 97% margin of safety at current prices.

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GuruFocus gave the manufacture of nonalcoholic beverages a profitability and growth rating of 7 out of 10. Its earnings per share have grown 14.5% over the last five years. Analysts project a three-year to five-year earnings growth rate of 10.31%. The return on equity of 18% and the return on assets of 6.45% are outperforming 78% of companies in the Global Beverages - Soft Drinks industry.

Jim Simons (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.32% of outstanding shares, followed by Jana Partners (Trades, Portfolio) with 0.23%.

Knight-Swift Transportation Holdings Inc. (KNX) is trading around $27 per share. The DCF calculator gives the stock a fair value of $109.65 per share, suggesting it has a 75% margin of safety.

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The company, which operates the largest truckload fleet in North America, has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 14.80% over the past decade. Analysts project a three-year to five-year earnings growth rate of 19.60%. Its return on equity of 13.69% and return on assets of 9.27% are outperforming 77% of companies in the Global Trucking industry.

With 0.78% of outstanding shares, NWQ Managers (Trades, Portfolio) is the is the company's largest guru shareholder.

Clearwater Paper Corp. (CLW) is trading around $27.80 per share. The DCF calculator gives the stock a fair value of $80.8 per share, suggesting it has a 66% margin of safety.

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The company, which produces tissue and paperboard products, has a GuruFocus profitability and growth rating of 7 out of 10. Analysts project a three-year to five-year earnings growth rate of 5%. Its return on equity of 21.83% and return on assets of 6.76% are outperforming 68% of companies in the Global Paper and Paper Products industry.

Viacom Inc. (VIAB) is trading around $28 per share. The DCF calculator gives the stock a fair value of $52.04 per share, suggesting it has a 45% margin of safety.

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The global media company has a GuruFocus profitability and growth rating of 7 out of 10. Its earnings per share have grown 5.20% over the last five years. Analysts project a three-year to five-year earnings growth rate of 5.16%. The return on equity of 25.45% and the return on assets of 7.38% are outperforming 80% of companies in the Global Media - Diversified industry.

With 4.34% of outstanding shares, Sarah Ketterer (Trades, Portfolio) is the company's largest guru shareholder, followed by John Rogers (Trades, Portfolio) with 0.67% and John Paulson (Trades, Portfolio) with 0.42%.

Hawaiian Holdings Inc. (HA) is trading around $29 per share. The DCF calculator gives the stock a fair value of $79 per share, suggesting it has a 63% 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 53.60% over the last five years. Analysts project a three-year to five-year earnings growth rate of 5%. The return on equity of 42.15% and the return on assets of 12.65% are outperforming 87% of companies in the Global Airlines industry.

Chuck Royce (Trades, Portfolio) is the largest guru shareholder of the company with 2.03% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 1.8%.

The Kroger Co. (KR) is trading around $29 per share. The discounted cash flow calculator gives the stock a fair value of $122.98 per share, suggesting it has a 76% margin of safety.

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The grocery store operator has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 9.80% over the last five years. Analysts project a three-year to five-year earnings growth rate of 6.37%. The return on equity of 52.82% and the return on assets of 9.97% are outperforming 62% of companies in the Global Grocery Stores industry.

With 0.39% of outstanding shares, Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder, followed by Smead Capital Management, Inc. (Trades, Portfolio) with 0.28% and Jeff Auxier (Trades, Portfolio) with 0.05%.

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

Read more here:

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  • 5 Negative Stocks in Gurus' Portfolios
  • 6 Low P/S Stocks


This article first appeared on GuruFocus.