Despite the fierce rally,
you can still findhigh-quality companies at great prices.
And if you watch a few minutes of CNBC, read a few blogs, or
talk to a few opinionated people, there's no doubt about it:
Fear still isn't hard to find, either. That's great news for
Fools on the hunt for great investments.
Using ourÂ
Motley Fool CAPSÂ ranking system'sÂ
screening tool, I scanned for a few
five-star-ratedcompanies -- the highest our CAPS
community offers -- that might aid your bargain-hunting
ambitions. Have a look:
Company
Recent Price
TTM Return on Equity
Forward P/E Ratio
3M (NYSE: MMM)
$76.82
24.24%
16.0
ChinaNatural Gas (Nasdaq: CHNG)
$12.28
24.7%
7.77
Flowserve (NYSE: FLS)
$104.09
28.08%
14.44
Diageo (NYSE: DEO)
$62.45
48.19%
11.81
Dolby (NYSE: DLB)
$43.88
21.61%
22.27
Fluor (NYSE: FLR)
$48.24
26.71%
13.47
UnitedHealth (NYSE: UNH)
$25.31
16.85%
8.22
Data from Motley Fool CAPS, Yahoo!
Finance, and Capital IQ, a division of Standard &
Poor's, as of Oct. 26, 2009.
None of these is necessarily a recommendation -- just a
good starting point for you to dig a little deeper. You can
rerun anÂ
updateof this screen yourself, if you
like.
A closer look at 3M
"
3M means make mucho money" said my Foolish colleague
David Lee Smith yesterday. After
3Mdestroyed earnings expectations in the third quarter, I
thought I'd see what our CAPS folks have to say.
Of the nearly 4,000 CAPS members rating 3M, fully 96% rate
it as an outperform. You'll be hard-pressed to find a rosier
consensus than that, so if you're looking for a contrarian
indicator, there it is. Just remember that there are multiple
reasons to give this company a long-term thumbs-up. Earlier
this spring, CAPS member
Treva23wrote:
'A diversified technology company....' that really says
it all. They are amazingly innovative and are all about
diving into new opportunities. They are going to benefit
from Obama's stimulus, as well as the coming green trends
and pretty much any other major trend that requires even
the slightest of technical solutions
flymikefly04adds:
Still profitable in this down market. They have made
wise decisions to set themselves up for future success. The
dividend is strong and does not appear in any risk of
getting cut.
And back in April, CAPS member
PsychoDrwrote:
Generates huge cash flow, even with a down market. Well
diversified, nice low PE, and best of all, not really
expected to blow the doors off with earnings. What Jeremy
Segal calls an El Dorado company. While I would never say a
dividend is safe, the cash flow and the history indicate
that [3M] is more likely than not to keep paying, and they
might even raise it more.
Still, plenty of investors ask: What the heck does this
company do? 3M may be mostly known for its iconic Post-It
Notes and Scotch Tape, but in truth, it's hugely diverse:
Segment
Percentage of 2008 Sales
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