U.S. Markets closed

Undervalued Stocks With Growing EPS

- By Tiziano Frateschi

Companies with growing earnings per share (EPS) are often good investments as they can return a good profit to investors. Here is a selection of the most undervalued companies, according to the DCF calculator, that have five-year growing EPS.


EPS of Genesco Inc. (GCO) grew by 9% over the last five years.

797440247.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 36% at the price of $51.85. The price-earnings (P/E) ratio is 10.56; the price has been as high as $74.21 and as low as $8.79 in the last 52 weeks and is 30.13% below its 52-week high and 8.79% above its 52-week low.

Genesco has a market cap of $1.02 billion and is engaged in the design and sourcing, marketing and distribution of footwear, apparel and accessories through retail stores.

The company's largest shareholder among the gurus is Chuck Royce (Trades, Portfolio) with 3.32% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.35% and Paul Tudor Jones (Trades, Portfolio) with 0.02%.

EPS of Heartland Financial USA Inc. (HTLF) grew by 15% over the last five years.

1709528521.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 37% at the price of $48.9. The P/E ratio is 15.24; the price has been as high as $51.70 and as low as $29.58 in the last 52 weeks and is 5.42% below its 52-week high and 65.31% above its 52-week low.

Heartland Financial USA has a market cap of $1.28 billion and is a multibank holding company. Through its subsidiaries it provides commercial and retail banking in the communities in which it is located.

Jim Simons (Trades, Portfolio) with 0.58% of outstanding shares is the largest investor among the gurus followed by Jones with 0.02%.

Earnings per share (EPS) of Gentherm Inc. (THRM) grew by 100% over the last five years.

1724393815.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 41% at the price of $35.1. The P/E ratio is 16.81; the price has been as high as $44.62 and as low as $26.60 in the last 52 weeks and is 21.34% below its 52-week high and 31.95% above its 52-week low.

Gentherm has a market cap of $1.28 billion and is engaged in the design, development and manufacturing of thermal management technologies. The company has two reportable segments for financial reporting purposes: Automotive and Industrial.

The company's largest shareholder among the gurus is Mairs and Power (Trades, Portfolio) with 1.93% of outstanding shares followed by Steven Cohen (Trades, Portfolio) with 0.25% and Richard Snow (Trades, Portfolio) with 0.1%.

Earnings per share of NIC Inc. (EGOV) grew by 19% over the last five years.

663111529.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 3% at the price of $20.1. The P/E ratio is 23.93; the price has been as high as $25.90 and as low as $17.06 in the last 52 weeks and is 22.39% below its 52-week high and 17.82% above its 52-week low.

NIC has a market cap of $1.34 billion and provides eGovernment services, which helps government use the Internet to reduce internal costs, increase efficiencies and provide a higher level of service to businesses and citizens.

Columbia Wanger (Trades, Portfolio) with 2.31% of outstanding shares is the largest investor among the gurus followed by Simons with 1.67%, Joel Greenblatt (Trades, Portfolio) with 0.37% and Jones with 0.02%.

EPS of Usana Health Sciences Inc. (USNA) grew by 18% over the last five years.

2050522977.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 33% at the price of $56.65. The P/E ratio is 14.40; the price has been as high as $75 and as low as $54.03 in the last 52 weeks and is 24.47% below its 52-week high and 4.86% above its 52-week low.

Usana Health Sciences has a market cap of $1.39 billion and develops and manufactures science-based nutritional and personal care products with a focus on promoting long-term health and reducing the risk of chronic degenerative disease.

The company's largest shareholder among the gurus is Simons with 6.66% of outstanding shares followed by Jones with 0.05%.

EPS of AZZ Inc. (AZZ) grew by 16% over the last five years.

1002884791.png

According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 3% at the price of $58.1. The P/E ratio is 23.15; the price has been as high as $67.98 and as low as $51.20 in the last 52 weeks and is 14.53% below its 52-week high and 13.48% above its 52-week low.

The company has a market cap of $1.51 billion and is a specialty electrical equipment manufacturer and provides engineered services to the power generation, industrial, transmission and distribution markets. It also provides galvanizing services.

Mario Gabelli (Trades, Portfolio) with 0.21% of outstanding shares is the largest investor among the gurus followed by Royce with 0.15% and Keeley Asset Management Corp (Trades, Portfolio) with 0.13%.

Earnings per share of BofI Holding Inc. (BOFI) grew by 32% over the last five years.

471766903.png

According to the DCF calculator, the stock is undervalued and trading with a margin of safety of 56% at the price of $24.46. The P/E ratio is 13.37; the price has been as high as $32.57 and as low as $15.29 in the last 52 weeks and is 24.90% below its 52-week high and 59.97% above its 52-week low.

Bofl Holding has a market cap of $1.55 billion and is a holding company. Through its bank holding it provides diversified financial services including consumer and business banking products through the branchless distribution channels and affinity partners.

The company's largest shareholder among the gurus is Royce with 0.71% of outstanding shares followed by David Dreman (Trades, Portfolio) with 0.03%.

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

Start a free seven-day trial of Premium Membership to GuruFocus.

This article first appeared on GuruFocus.