7 Growth Stocks on Sale

What's your investment style? Sooner or later, all investors are faced with the challenge of having to answer this pretty loaded question. Are you a Rule Maker or a Rule Breaker? A grow-getter or a value-seeker? A foolish speculator or a Foolish investor?

Although it's always good to clarify our general tolerance for risk-taking, we should never forget two important things:

1. Growth and value investing are joined at the hip, and
2. The most awesome growth stocks are also undervalued stocks.

The best of both worlds
Successful investing isn't simply about buying the stocks with the lowest P/E ratios, or the ones with the most spectacular growth rates. Instead, the key to investing is putting your money on the most attractive risk/reward propositions that Mr. Market has to offer.

Buying growing companies at discounted prices is probably the best method by which to do that. This approach earns you the double benefit of buying a stock that trades below its fair value today, and owning a business that's well-positioned to grow that value tomorrow.

We've got these stocks PEG-ged
So, with our hearts set on growth -- but our brains stubbornly fixated on getting a fair price for it -- here are seven more reasonably priced, fast-growing favorites of our Motley Fool CAPS community.

In addition to having five-year estimated growth rates of at least 15% and PEG ratios of less than 1, these stocks have each received a four- or five-star rating from our pool of more than 65,000 individual and professional investors.

As always, don't take these stocks as well-formulated investment recommendations, but rather as candidates for further research. Regardless of which investment approach you take, due diligence is the thread that binds all superior returns.

To get you started, though, here's a brief summary of one stock that caught my attention.

Fighting for Irish
Investors don't usually associate banking stocks with awesome growth at the best of times. And in today's massive mortgage market mess, investors seem to be avoiding them at all costs. Even being based in Dublin hasn't exactly insulated Allied Irish Banks from Mr. Market's wrath.

The stock is down 22% in the last half-year alone -- likely because of concerns over its 24% stake in Buffalo-based M&T Bank (NYSE:MTB). But the good news is that with a five-star CAPS rating and analysts expecting nearly 20% earnings growth in each of the next five years, there are plenty of good reasons to remain bullish about the Motley Fool Global Gains selection -- especially at today's bargain prices.

Click over to AIB's CAPS page and you'll find numerous arguments centering on its dominant position in Ireland's flourishing market, disciplined lending practices, and tremendous expansion opportunities in Europe. Management has consistently delivered returns on equity around 20% and recently brought its efficiency ratio down to about 45%, so that bullish sentiment is more than warranted.

Of course, there are plenty of other metrics and risks to consider, but with a forward P/E of 7.66 and a PEG of 0.46 (not to mention a dividend yield of 3.20%), I'd say AIB is certainly worth the effort.

Now, let's hear straight from our contestants ... 

• CAPS player crazydevildc sees a whole lot of green: "AIB has minimal exposure to the U.S. bank industry with only a 24% share in M&T Bank, yet its shares have moved down with the subprime concerns of U.S. banking. 60% of the income comes directly from Ireland with moderate exposure to Great Britain and Poland. It has essentially an oligopoly with Bank of Ireland. With a 3.5% yield [at the time of writing -- it's currently 3.20%], ROIC averaging 16%, ROE above 20%, and PEG of 0.5 [now at 0.46], I am increasing my position in this stock."

• All-Star MArgersinger's eyes are also smiling: "This is a strong banking operation, poised to grow in lock-step with a vibrant and economically-liberal Irish economy, with inroads into Eastern Europe markets through its fast-growing Polish subsidiary. The recent downturn in the company's stock price has created a nice bargain and a substantial dividend yield."

Get growin', Fool
So, does the idea of buying high-growth companies at decent prices make complete sense to you? More appropriately, how could it not? Join our Motley Fool CAPS community to get more analysis on the above ideas, create your own list of fairly priced growers, or even weigh in with a sharp opinion of your own.

Within moments, you'll have access to stock ideas that can provide the best of both the value and the growth investing worlds. Oh, and it's absolutely free. Now that's what I call a reasonable price.