Tuesday, November 03, 2009
Morgan Housel :: Townhall.com Columnist
5-Star Stocks Worth a Look
by Morgan Housel
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Despite the fierce 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. There's no doubt about it: Fear still isn't hard to find. And that's great news for those on the hunt for great investments.  

Using our  Motley Fool CAPS ranking system's  screening tool, I scanned for five-starcompanies -- the highest rating our CAPS community offers -- that might aid your bargain-hunting ambitions. Have a look:

Company

Recent Price

Return on Equity (TTM)

Forward P/E Ratio

Abbott Laboratories (NYSE: ABT)

$50.91

28.9%

12.27

Coca-Cola (NYSE: KO)

$53.72

27.3%

15.71

Colgate-Palmolive (NYSE: CL)

$78.70

87.3%

16.29

GlaxoSmithKline (NYSE: GSK)

$40.71

28.4%

10.23

Procter & Gamble (NYSE: PG)

$58.95

21.7%

14.63

PepsiCo (NYSE: PEP)

$60.60

34.1%

14.50

Schlumberger (NYSE: SLB)

$62.71

18.1%

22.40

Data from Motley Fool CAPS and Yahoo! Finance, as of Nov. 3, 2009.
TTM = trailing 12 months. P/E = price-to-earnings ratio.

None of these are necessarily recommendations -- just good starting points for you to dig a little deeper. You can run an  updateof this screen, if you like.

Consumer staples throwdown: P&G vs. Colgate
Both Procter & Gambleand Colgate-Palmolivedeserve your attention. They're both leading consumer staples companies with hugely powerful brands. Both probably line your kitchen, bathroom, and laundry room. Both are solid, time-tested blue chips with a history of rewarding investors like champions. You know the story.

But which one's throwin' down over the other? And which stock is a better buy? We'll try to figure that out right now:

Metric

Procter & Gamble

Colgate-Palmolive

5-year revenue growth

8.0%

7.6%

5-year net income growth

9.6%

10.8% Continued...

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About The Author

Morgan Housel is a Motley Fool contributor.

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