Pop quiz: What does memory card maker SanDisk (Nasdaq: SNDK) have in common with latte slinger Starbucks (Nasdaq: SBUX) and high-end mattress maker Tempur Pedic International (NYSE: TPX)?

If you're thinking that all of them have beaten the market in the last year, you're on the right track. But wait, there's more: all three are trading within 20% of their 52-week highs, which means that they're on a roll. Momentum investors, rejoice! And it still gets better: they're all relatively cheap despite hefty share price run-ups. There might still be more room to run ahead of these businesses.

What's more is, they brought some company:

Company

1-year Return

% of 52-Week High

Trailing P/E Ratio

SanDisk

131%

83%

9.8

Starbucks

71%

88%

14

Tempur Pedic

120%

85%

12

CBS (NYSE: CBS)

90%

81%

12

Hansen Natural (Nasdaq: HANS)

46%

95%

12

Source: Capital IQ, a division of Standard & Poor's.

I believe that the three criteria I'm using here -- great performance, current momentum, and reasonable valuation -- combine to make some good-looking investment ideas.

That doesn't mean you should run out and buy these stocks right away, of course. Some of these princes may have warts that the filter couldn't catch. CBS, for example, has destroyed plenty of value for longtime investors and only looks good because it's coming off a truly terrible 2008. On a five-year timescale, Walt Disney (NYSE: DIS) has eaten CBS' lunch on a regular basis. How high can this dead cat bounce? I'm not sure.

But most of them look alright. Starbucks is recovering for a few lean years of its own, but management suddenly seems to have a workable plan for the future and all is not lost. Hansen is going from strength to strength in the eternal struggle against energy drink veteran Red Bull, and that includes finally reaching across our borders to a wealth of promising international markets. I'd tread lightly in the consumer-oriented technology sector where SanDisk makes a living, but Apple (Nasdaq: AAPL) has proved that there's still life in that sub-market and you can't argue with SanDisk's attractive valuation.

In my opinion, CBS is the only one of these five stocks that doesn't have any room left to run.

Tip o' the CAPS
If you want some more guidance before really digging in, our CAPS community is here to help. Starbucks and CBS have kept their meager two-star ratings relatively stable through thick and thin, but community sentiment varies:

  • Some CAPS members worry about fast-food chains stealing Starbucks' customers, but others see the company adapting to new market realities through instant-serving products and an unbeatable brand.
  • The main thing going for CBS is its way-low valuation. All-star CAPS member and former Foolish colleague Dan Rubin puts it this way: "Big Media is dead as a reliable market beater. May make money, but as more and more and more competition (iPad anyone?) comes for people's brains, old media [moves to Hoboken]." (Redacted for the kids.)

The star of my little show would be Hansen Natural, whose four stars are supported by quotable opinions like "Not a fad," "Takeover target," and "Well managed with little to zero debt." The others waggle to and fro, true to their neutral three-star ratings. I leave it as an exercise for you, dear reader, to dig in and see which side of the argument wins the day for SanDisk and Tempur Pedic. It's good practice for the next time you're looking for advice on a stock you don't fully understand or appreciate yet.

If you don't have a CAPS account yet, don't let that deter you from jumping in. The service is 100% free, lots of fun, and very informative. Once you've mastered the basics, you can even dive in and get your own research and opinions displayed to an appreciative community. When we all work together, everyone gets richer.