"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? (
Sorry, Jim.) Despite the recent rally, high-quality
companies at great prices can still be found. Watch a few
minutes of CNBC, read a few blogs, talk to a few opinionated
people, and there's no question about it: Fear still isn't
hard to find. And that's great news for bargain-hunting
investors.
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
Agrium (NYSE: AGU)
$51.64
17.9%
9.7
Almost Family (Nasdaq: AFAM)
$31.75
20.0%
11.2
Burlington Northern Santa Fe (NYSE:
BNI)
$82.47
16.9%
14.9
Novartis (NYSE: NVS)
$50.28
15.1%
12.9
Transocean (NYSE: RIG) Continued... |