"I will tell you how to become rich.Â
Close the doors.Â
Be fearful when others are greedy.
Be greedy when others are fearful."
--Â Warren Buffett
Can't argue with that, can you? Despite the recent rally,
there's
no shortage of fearin many industries. It's a real gut
check, but that fear is creating opportunities for investors
patient and diligent enough to search for the babies thrown
out with the bathwater.
We're looking for cheap stocks here. And not just stocks
that have fallen in price, but
goodcompanies that are still
cheap.
There's a difference.
Using ourÂ
Motley Fool CAPSÂ ranking system'sÂ
screening tool, I scanned for bargain companies with the
following characteristics:
ratings-- the highest our CAPS community offers.
Estimates of profitability in the year ahead.
High returns on equity.
Attractive valuation based on forward earnings
multiples.
Have a look:
Company
Recent Price
TTM Return on Equity
Forward P/E Ratio
Abbott Laboratories (NYSE: ABT)
$50.04
27%
12.15
GrafTech International (NYSE:
GTI)
$14.07
18%
13.32
Morningstar (Nasdaq: MORN)
$49.44
14%
25.34
SYSCO (NYSE: SYY)
$24.42
31%
12.89
Waste Management (NYSE: WM)
$28.39
16% Continued... |