The market's had quite a run over the past three months, as rising prices wiped out some of the most appealing valuations seen in decades. But this starry-eyed, largely hope-based surge in stock prices doesn’t mean you’ve missed the boat, and shouldn’t deter you from making a wish list of stocks you'd like to snag for your own portfolio.
If this truly is the beginning of a new bull market -- which I don’t think it is -- then there’s still more room to run from here. And if it’s simply a fierce bear-market rally -- which is probably more likely -- then a pullback will correct prices. Either way, if you research and build a list of stocks you'd want to own, you simply need to wait until each stock reaches your preferred price to pounce.
To start assembling my very own stock wish list, I used the Fool's CAPS screener to find premium companies such as McDonald's
To screen for some of the market's best stocks, I used the following criteria:
- Market caps greater than $10 billion, which suggests stability.
- A current ratio of at least 1, to ensure sufficient liquidity to meet current liabilities.
- Return on equity north of 15%, to demonstrate efficiency and profitability.
- Five-star ratings, our CAPS community's highest rank.
You can review my results in full if you like, but here are some of the highlights:
|
Company |
Market Cap (in billions) |
Current Ratio |
Return on Equity (TTM) |
|---|---|---|---|
|
3M |
$41.3 |
1.8 |
29.5% |
|
Accenture |
$18.6 |
1.4 |
75.2% |
|
Johnson & Johnson |
$154.8 |
1.6 |
29.4% |
|
PepsiCo |
$84.5 |
1.4 |
42.7% |
|
Transocean |
$25.5 |
2 |
23.9% |
Data from Motley Fool CAPS.
While the CAPS screen can suggest all kinds of promising companies, running a screen should only be the first step in your stock research. Come join our CAPS online investment community to delve further into these companies, and see whether they're right for your portfolio.
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