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6 Companies Growing Earnings

- By Tiziano Frateschi

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, the following undervalued companies have grown their earnings over a five-year period.


The earnings per share of GATX Corp. ( GATX ) have grown 30% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 70% margin of safety at $74 per share. The price-earnings ratio is 5.60. The stock price has been as high as $91.12 and as low as $56 in the last 52 weeks; it is currently 20.43% below its 52-week high and 29.46% above its 52-week low.

The company, which provides railcar leasing and maintenance services, has a market cap of $2.73 billion and an enterprise value of $6.91 billion.

GATX's largest shareholder among the gurus is Mario Gabelli ( Trades , Portfolio ) with 6.62% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.11%, Pioneer Investments (Trades, Portfolio) with 0.11% and Paul Tudor Jones (Trades, Portfolio) with 0.04%.

Grupo Aeroportuario del Centro Norte SAB's ( OMAB ) earnings per share have grown 20% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 24% margin of safety at $48.71 per share. The price-earnings ratio is 20.40. The stock price has been as high as $58.10 and as low as $37.45 in the last 52 weeks; it is currently 16.16% below its 52-week high and 30.07% above its 52-week low.

The aeronautical services provider has a market cap of $2.75 billion and an enterprise value of $2.88 billion.

With 1.05% of outstanding shares, Simons' firm is the company's largest guru shareholder, followed by Jeremy Grantham (Trades, Portfolio) with 0.06%.

The earnings per share of Banco Macro SA ( BMA ) have grown 41% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 83% margin of safety at $42.56 per share. The price-earnings ratio is 9.33. The stock price has been as high as $135.85 and as low as $32 in the last 52 weeks; it is currently 68.67% below its 52-week high and 33% above its 52-week low.

The commercial bank has a market cap of $2.83 billion and an enterprise value of $2.39 billion.

Banco Macro's largest guru shareholder is Ron Baron (Trades, Portfolio) with 0.82% of outstanding shares, followed by Simons' firm with 0.11%, Pioneer Investments with 0.05%, Howard Marks (Trades, Portfolio)' Oaktree with 0.03% and Ken Fisher (Trades, Portfolio) with 0.01%.

Ryder System Inc.'s (NYSE:R) earnings per share have grown 23% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 76% margin of safety at $57.22 per share. The price-earnings ratio is 3.91. The stock price has been as high as $103.53 and as low as $66.94 in the last 52 weeks; it is currently 34.48% below its 52-week high and 1.33% above its 52-week low.

The company, which provides supply chain and fleet management solutions, has a market cap of $3.04 billion and an enterprise value of $8.94 billion.

With 3.93% of outstanding shares, Richard Pzena (Trades, Portfolio) is the company's largest guru shareholder, followed by Barrow, Hanley, Mewhinney & Strauss with 2.74%, Simons with 0.18%, Pioneer Investments with 0.15% and Steven Cohen (Trades, Portfolio) with 0.06%.

The earnings per share of Aaron's Inc. ( AAN ) have grown 12% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 24% margin of safety at $45 per share. The price-earnings ratio is 11.07. The stock price has been as high as $56 and as low as $34.29 in the last 52 weeks; it is currently 19.37% below its 52-week high and 31.67% above its 52-week low.

The retailer of furniture, consumer electronics, computers, appliances and household accessories has a market cap of $3.1 billion and an enterprise value of $3.36 billion.

Aaron's largest guru shareholder is Diamond Hill Capital (Trades, Portfolio) with 2.54% of outstanding shares, followed by First Pacific Advisors (Trades, Portfolio) with 0.98% and the FPA Capital Fund (Trades, Portfolio) with 0.19%.

KapStone Paper and Packaging Corp.'s ( KS ) earnings per share have grown 15% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 53% margin of safety at $32 per share. The price-earnings ratio is 10.34. The stock price has been as high as $35.01 and as low as $20.51 in the last 52 weeks; it is currently 9.60% below its 52-week high and 54.31% above its 52-week low.

The company, which produces container board, corrugated products and specialty paper, has a market cap of $3.1 billion and an enterprise value of $4.39 billion.

With 0.67% of outstanding shares, Cohen is the company's largest guru shareholder, followed by Joel Greenblatt (Trades, Portfolio) with 0.17%, Gabelli with 0.16% and George Soros (Trades, Portfolio) with 0.1%.

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

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This article first appeared on GuruFocus .