What's your investment style? Sooner or later, all investors face 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.
  2. The most awesome growth stocks are also undervalued stocks.

The best of both worlds
Successful investing isn't simply about buying stocks with the lowest P/E ratios, or ones with the most spectacular growth rates. After all, treacherous value traps and growth traps lurk around every corner of the market. 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 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 at or above 20% and PEG ratios below 1, these stocks have received a four- or five-star rating from our pool of 25,000 individual and professional investors.


Est. 5-Year Earnings Growth Rate

PEG Ratio

Current CAPS Rating (out of five)

Pan American Silver (NASDAQ:PAAS)








Greif (NYSE:GEF)




Carbo Ceramics (NYSE:CRR)








W-H Energy Services (NYSE:WHQ)




Tetra Technologies (NYSE:TTI)




Data from Yahoo! Finance and Motley Fool CAPS.

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.  

High-carbo diet
Our CAPS database is great for finding cracks in the market to exploit. But Carbo Ceramics, a provider of crack-stabilizing proppants, is about as good as it gets. Proppants are used to, you guessed it, prop open the cracks in rocks that are caused when drilling for natural gas.

Carbo saw its shares decline 35% over the course of 2006. Huge revenue misses, weak energy prices, and costly delays in the completion of its Russian facility all had a hand in fracturing the stock price. But while the market was giving up its carbos for good, our CAPS community was loading up on "outperform" ratings, calling most of the company's problems temporary.

For example, last December, workinharder said, "Uncertainty of new plant start up and loss of patent protection is depressing the stock price. Good buy at this level." And all the way back in September, AlMueller stated, "On the down side are the cost over runs with its new plant in Russia. But these problems should wind out in the near future, and the price is nearly half its year high at present. With its new plant up and running, this stock should start picking up." So, how are those calls making out?

In the fourth quarter, Carbo reported 37% revenue growth on increased proppant demand and price hikes, while the Russian facility should be in full production by the fourth quarter. The stock followed the encouraging news, and is up nearly 45% from those 52-week lows. Of course, for new Fools, the question is whether Carbo is still attractive at present levels.   

With a forward P/E of 15, a dividend yield of 1%, zero debt, and a huge increase in manufacturing capacity looming, I'd say Carbo looks like a reasonable bet to keep crackin' the market. I'll let Foolish colleague and CAPS legend TMFPlatoish1 leave you with a synopsis:

As long as gas exploration is profitable, CRR should do well. Their product allows extraction of difficult to access tight gases and improves extraction efficiency. The company also runs a services business which allows mapping and analysis of fracture contours. This is exciting stuff - tensor models and advanced fluid dynamics.

Get growin', Fool
So, does 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, 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 value- and growth-investing worlds. Oh, and it's absolutely free. Now that's what I call a reasonable price.  

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Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool has a disclosure policy.