5-Star Stocks Worth a Look

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Despite the fierce rally, you can still find high-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 our Motley Fool CAPS ranking system's screening tool, I scanned for a few five-star-rated companies -- 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 an update of 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 3M destroyed 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 Treva23 wrote:

'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

flymikefly04 adds:

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 PsychoDr wrote:

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
Industrial and Transportation	30.9%
Health Care	17%
Safety, Security and Protection Services	14.4%
Consumer and Office	13.6%
Display and Graphics	12.9%
Electro and Communications	11%
Other	0.2%

The company has its hands in everything from reflective sheeting to orthodontic products. Moreover, it does business in nearly every section of the globe:

Location	Percentage of 2008 Sales
United States	36.3%
Asia Pacific	25.4%
Europe, Middle East, Africa	27.5%
Latin America/Canada	10.8%

On the valuation side, a near-doubling since March has left shares trading at 16 times next year's earnings estimates, so it won't win any prizes for cheapness. But 3M isn't your average company, and doesn't deserve your average multiple. Going back to the early '90s, shares have traded, on average, at more than 21 times earnings. If you're from the camp that firmly believes the economy is on the mend, today's valuation still might not look horribly pricey.

Enough from me. What do you have to say?
Have your own take on any of these 3M? More than 140,000 investors use CAPS to share ideas and swap opinions. Click here to check it out and speak your mind. It's 100% free to participate.

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