Investors are always hunting for the next big stock -- the dream stock whose price increases several times over when the market finally discovers it. It's easy to look back and discover the 10 best stocks of the past decade. But I'm more interested in the tools that can help me evaluate tomorrow's greatest companies.
Motley Fool CAPS offers a variety of resources to aid Fools in finding tomorrow's leaders. Our 170,000-member community is full of investors helping each other beat the market.
We'll enlist CAPS to screen for value stocks, then get the story behind some of its more highly rated companies. CAPS' nifty screener will help us find stocks with:
- A market cap of at least $1 billion.
- A long term debt-to-equity ratio of less than 0.5.
- A current ratio of at least 1.
- A price-to-earnings ratio of less than 15.
Then we'll tap the collective intelligence of our CAPS members to see whether these companies present real opportunities -- or if the numbers fail to tell the true story.
Opinions with the numbers
Below is a sample of stocks our screen returned.
Company |
P/E Ratio |
LT Debt-to-Equity Ratio |
CAPS Rating (out of 5) |
---|---|---|---|
Corning |
8.1 |
0.11 |
***** |
ConocoPhillips |
9.2 |
0.43 |
***** |
Hewlett-Packard |
10.6 |
0.32 |
**** |
Data and star rankings from CAPS as of Sept. 10.
Corning
Corning is looking to overcome some of the concerns of weak consumer spending in the current economy and sees strong growth opportunities in the LCD glass market, in which it holds an almost two-thirds market share. The growth in popularity of LCD TVs is increasing in emerging markets, a trend echoed by sales results in peer 3M's
ConocoPhillips
Even though Warren Buffett's Berkshire Hathaway
Hewlett-Packard
HP's recent buying spree that includes hefty premiums for 3Par
Let 170,000 members be the jury
The collective wisdom of a huge pool of investors can help give context to a page of numbers from a stock screen. But individual investors are still the best judges of what to do with their own money. Fools should always perform their own due diligence.
Happily, it's easy to chime in with your own opinion. If you agree that these companies present dream opportunities -- or see more of a nightmare instead -- simply scroll down and add your thoughts in the comments box.