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6 Undervalued Companies Growing Earnings

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 as of Wednesday, the following undervalued companies have grown their earnings per share over a five-year period.

NVR Inc.'s (NYSE:NVR) earnings per share have grown 27.70% per year over the past five years.


According to the DCF calculator, the stock is undervalued with a 39% margin of safety at $3,600 per share. The price-earnings ratio is 17.23. The share price has been as high as $3,770 and as low as $2,040 in the last 52 weeks; it is currently 5.14% below its 52-week high and 75.25% above its 52-week low.

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The American homebuilder has a market cap of $13.07 billion and an enterprise value of $12.88 billion.

With 2.91% of outstanding shares, Diamond Hill Capital (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.88% and the Smead Value Fund (Trades, Portfolio) with 0.70%.

The earnings per share of Texas Pacific Land Trust (NYSE:TPL) have grown 48.60% per year over the past five years.

According to the DCF calculator, the stock is undervalued with a 39% margin of safety at $690 per share. The price-earnings ratio is 17.80. The share price has been as high as $915.66 and as low as $409 in the last 52 weeks; it is currently 22.44% below its 52-week high and 73.65% above its 52-week low.

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The company, which operates in the sales and leases of land owned, retaining oil and gas royalties, has a market cap of $5.51 billion and an enterprise value of $5.36 billion.

The company's largest guru shareholder is Murray Stahl (Trades, Portfolio) with 21.28% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.01%.

Credit Acceptance Corp.'s (NASDAQ:CACC) earnings per share have grown 23.40% per year over the past five years.

According to the DCF calculator, the stock is undervalued with a 48% margin of safety at $488 per share. The price-earnings ratio is 14.73. The share price has been as high as $509.99 and as low as $356.12 in the last 52 weeks; it is currently 5.10% below its 52-week high and 35.91% above its 52-week low.

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The consumer finance company has a market cap of $9.10 billion and an enterprise value of $13.24 billion.

With 5.78% of outstanding shares, Ruane Cunniff (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons' firm with 0.25%, Jeremy Grantham (Trades, Portfolio) with 0.24% and Lee Ainslie (Trades, Portfolio) with 0.06%.

The earnings per share of Amerco Inc. (NASDAQ:UHAL) have grown 7.60% per year over the past five years.

According to the DCF calculator, the stock is undervalued with a 28% margin of safety at $386 per share. The price-earnings ratio is 20.37. The share price has been as high as $403.92 and as low as $316 in the last 52 weeks; it is currently 4.55% below its 52-week high and 22.01% above its 52-week low.

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The company, which provides rental trucks to household movers, has a market cap of $7.56 billion and an enterprise value of $9.15 billion.

The company's largest guru shareholder is David Abrams (Trades, Portfolio) with 2.86% of outstanding shares, followed by Barrow, Hanley, Mewhinney & Strauss with 2.15% and Hotchkis & Wiley with 1.07%.

O'Reilly Automotive Inc.'s (NASDAQ:ORLY) earnings per share have grown 21.10% per year over the past five years.

According to the DCF calculator, the stock is undervalued with a 20% margin of safety at $390 per share. The price-earnings ratio is 23.05. The share price has been as high as $414.63 and as low as $314.14 in the last 52 weeks; it is currently 8.25% below its 52-week high and 21.11% above its 52-week low.

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The company which provides aftermarket automotive parts, and accessories, has a market cap of $29.11 billion and an enterprise value of $34.77 billion.

With 2.47% of outstanding shares, Chuck Akre (Trades, Portfolio) is the company's largest guru shareholder, followed Pioneer Investments (Trades, Portfolio) with 0.98%, Abrams with 0.68% and Diamond Hill Capital (Trades, Portfolio) with 0.68%.

The earnings per share of Biogen Inc. (NASDAQ:BIIB) have grown 15.60% per year over the past five years.

According to the DCF calculator, the stock is undervalued with a 69% margin of safety at $236.12 per share. The price-earnings ratio is 8.78. The share price has been as high as $358.41 and as low as $215.77 in the last 52 weeks; it is currently 33.89% below its 52-week high and 9.82% above its 52-week low.

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The drug manufacturer has a market cap of $43.55 billion and an enterprise value of $46.97 billion.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 7.38% of outstanding shares, followed by the Vanguard Health Care Fund (Trades, Portfolio) with 1.41%, Simons' firm with 1.26% and the Parnassus Endeavor Fund (Trades, Portfolio) with 0.47%.

Disclosure: I do not own any stocks mentioned.

Read more here:

  • 6 Cheap Stocks Boosting Book Value
  • 5 Stocks Beating the Market
  • 6 Cheap Stocks With a Margin of Safety



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This article first appeared on GuruFocus.