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6 Undervalued Stocks With 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.


Viacom Inc. (VIA) is trading around $29 per share. The discounted cash flow calculator gives the stock a fair value of $52.04 per share, suggesting it has a 44% margin of safety.

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GuruFocus gives the media company a profitability and growth rating of 7 out of 10. Its earnings per share have fallen 4.10% 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 return on assets of 7.38% are outperforming 80% of companies in the Global Media - Diversified industry.

Mario Gabelli (Trades, Portfolio) is the company's largest guru shareholder with 0.45% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.01%.

Anika Therapeutics Inc. (ANIK) is trading around $30 per share. The DCF calculator gives the stock a fair value of $36.44 per share, suggesting it has a 14% margin of safety.

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The company, which provides orthopedic medicines, has a GuruFocus profitability and growth rating of 9 out of 10. Its earnings per share have grown 18.10% over the past decade. Analysts project a three-year to five-year earnings growth rate of 10%. Its return on equity of 7.44% and return on assets of 6.94% are outperforming 84% of companies in the Global Biotechnology industry.

With 1.9% of outstanding shares, Simons' firm is the is the company's largest guru shareholder, followed by Hotchkis & Wiley with 0.53% and Ken Fisher (Trades, Portfolio) with 0.5%.

Dick's Sporting Goods Inc. (DKS) is trading around $30 per share. The DCF calculator gives the stock a fair value of $35.1 per share, suggesting it has an 11% margin of safety.

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The sporting goods retailer has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 3.40% over the last five years. Analysts project a three-year to five-year earnings growth rate of 6.59%. Its return on equity of 17.56% and return on assets of 7.53% are outperforming 75% of companies in the Global Specialty Retail industry.

Ron Baron (Trades, Portfolio) is the largest guru shareholder of the company with 0.74% of outstanding shares, followed by Simons' firm with 0.65%, PRIMECAP Management (Trades, Portfolio) with 0.45% and Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.14%.

Fresenius Medical Care AG & Co. (FMS) is trading around $32.21 per share. The DCF calculator gives the stock a fair value of $49.13 per share, suggesting it has a 34% margin of safety.

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The kidney dialysis company has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 8.60% over the last five years. Analysts project a three-year to five-year earnings growth rate of 7.50%. The return on equity of 18.93% and return on assets of 7.93% are outperforming 63% of companies in the Global Medical Care industry.

Eaton Vance Corp. (EV) is trading around $33.83 per share. The DCF calculator gives the stock a fair value of $40.31 per share, suggesting it has a 16% margin of safety.

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The provider of asset management and investment advisory services has a profitability and growth rating of 7 out of 10. Its earnings per share have grown 10.90% over the last five years. Analysts project a three-year to five-year earnings growth rate of 3.48%. The return on equity of 35.26% and return on assets of 13.73% are outperforming 86% of companies in the Global Asset Management industry.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.04% of outstanding shares.

Rush Enterprises Inc. (RUSHA) is trading around $33 per share. The DCF calculator gives the stock a fair value of $110.05 per share, suggesting it has a 69% margin of safety.

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The operator of commercial vehicle dealerships has a GuruFocus profitability and growth rating of 8 out of 10. Its earnings per share have grown 12.50% over the last five years. Analysts project a three-year to five-year earnings growth rate of 19.64%. The return on equity of 19.20% and return on assets of 6.71% are outperforming 69% of companies in the Global Auto and Truck Dealerships industry.

With 2.22% of outstanding shares, Hotchkis & Wiley is the company's largest guru shareholder, followed by Ronald Muhlenkamp (Trades, Portfolio) with 0.65%, First Pacific Advisors (Trades, Portfolio) with 0.3% and Barrow, Hanley, Mewhinney & Strauss with 0.09%.

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

Read more here:

  • 5 Heavy Stocks in Gurus' Portfolios
  • 6 Stocks With Low Price-Sales Ratios
  • 6 Stocks With Solid Dividend Yield


This article first appeared on GuruFocus.