Frank Sands is the CEO and CIO of Sands Capital Management, an investment management firm focused on investing in quality growth businesses throughout the world. He manages a portfolio of 51 stocks with a total value of $40.6 billion. The following are five undervalued stocks in his portfolio with the highest growing EPS over the last five years.
IPG Photonics Corp.'s (IPGP) EPSĂ‚ grew by 78.70% over the last five years. According to the DCF calculator, the stock is undervalued at its current price of $81 and is trading with a margin of safety of 34%.
IPG Photonics Corp. is the developer and manufacturer of a broad line of high-performance fiber lasers, fiber amplifiers and diode lasers that are used in materials processing. Its diverse lines of low, mid and high-power lasers and amplifiers are used in materials processing, advanced, communications and medical applications.
For the second quarter, IPG reported a growth of 22% year over year for revenue, recorded a gross margin of 54.7% and increased earnings per diluted share by 25% year over year. As a result of expansion in existing and new OEM customers, the company delivered a 21% increase in materials processing sales during the second quarter.
The stock is trading with a PE ratio of 18.80, and the price has been as high as $102.49 and as low as $60.75 in the last 52 weeks. It is currently 20.38% below its 52-week high and 34.32% above its 52-week low.
Columbia Wanger (Trades, Portfolio) is the main guru shareholder with 3.72% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.88% and Westport Asset Management (Trades, Portfolio) with 0.63%.
Baidu Inc.'s (BIDU) EPSĂ‚ grew by 55.10% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $144 and is trading with a margin of safety of 16%.
The company is a Chinese language Internet search provider. It provides a platform for businesses to reach customers and offers its products and services to users through Baidu.com free of charge.
The company delivered solid financial results in the second quarter of 2015, with an increase of 24% year-over-year for mobile search monthly active users and an increase of 109% year-over-year for gross merchandise value for O2O services.
The stock is trading with a PE ratio of 24.2, and the price has been as high as $251.99 and as low as $100.00 in the last 52 weeks. It is currently 42.77% below its 52-week high and 44.22% above its 52-week low.
Frank Sands (Trades, Portfolio) is the main guru shareholder with 2.76% of outstanding shares, followed by Dodge & Cox with 1.90% and Andreas Halvorsen (Trades, Portfolio) with 0.37%.
Kansas City Southern Inc.'s (KSU) EPSĂ‚ grew by 42.50% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $97 and is trading with a margin of safety of 23%.
Kansas City Southern is engaged in the freight rail transportation business operating through a single coordinated rail network. It operates domestic and international rail operations in North America, focused on the growing north/south freight corridor connecting key commercial and industrial markets in the central USA with industrial cities in Mexico.
The company reported revenue declined 10% year over year, in which foreign exchange and lower U.S. fuel prices were responsible for 8% of the total 10% decline.
The stock is trading with a PE ratio of 22, and the price has been as high as $126.49 and as low as $86.38 in the last 52 weeks. It is currently 22.56% below its 52-week high and 13.39% above its 52-week low.
Andreas Halvorsen (Trades, Portfolio) is the main guru shareholder with a stake of 4.35%, followed by Lee Ainslie (Trades, Portfolio) with 2.17% and Frank Sands (Trades, Portfolio) with 1.92%.
Biogen Inc.'s (BIIB) EPSĂ‚ grew by 28.30% over the last five years. According to the DCF calculator, the stock is undervalued at the current price of $269.16Ă‚ and is trading with a margin of safety of 36%.
Biogen is the developer and manufacturer of a broad line of high-performance fiber lasers, fiber amplifiers and diode lasers that are used in materials processing. Its diverse lines of low, mid and high-power lasers and amplifiers are used in materials processing, advanced, communications and medical applications.
During the last quarter, revenue increased by 7% over the year-ago quarter. Non-GAAP diluted earnings per share had an increase of 21% over the same quarter of a year before.Ă‚
The stock is trading with a PE ratio of 18.80, and the price has been as high as $102.49 and as low as $60.75 in the last 52 weeks. It is currently 20.38% below its 52-week high and 34.32% above its 52-week low.
PRIMECAP Management (Trades, Portfolio) is the main guru shareholder with a stake of 7.02%, followed by Frank Sands (Trades, Portfolio) with 2.01% and Vanguard Health Care Fund (Trades, Portfolio) with 0.76%.
EPS of Whole Foods Market Inc. (WFM) grew by 29.50% over the last five years. According to the DCF calculator, the stock is undervalued by 9% at the current price of $34.24.
Whole Foods is a retailer of natural and organic foods. During the last quarter, total sales increased 10% and diluted earnings per share had a 14% increase over the prior year. These results reflect another quarter of record sales and healthy returns on invested capital.
The stock is trading with a PE ratio of 20.40, and the price has been as high as $57.57 and as low as $30.18 in the last 52 weeks. It is currently 40.52% below its 52-week high and 13.45% above its 52-week low.
Frank Sands (Trades, Portfolio) is the main guru shareholder with a stake of 4.39% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.37% and Joel Greenblatt (Trades, Portfolio) with 0.20%.
