7 Growth Stocks on Sale

What's your investment style? Sooner or later, all investors must answer this loaded question.

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 just joined at the hip, and
2. The most awesome growth stocks are also undervalued stocks.

The best of both worlds
To succeed in investing, you must put your money on the most attractive risk/reward propositions Mr. Market has to offer. Buying growing companies at discounted prices is probably the best way to do so: You're buying a stock that trades below its fair value today, yet also owning a business well-positioned to grow that value tomorrow.

We've got these stocks PEG-ed
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 below 1, these stocks have received a four- or five-star rating (out of five) from our pool of more than 110,000 individual and professional investors.

Data from Yahoo! Finance and Motley Fool CAPS.

As always, don't take these stocks as well-formulated investment recommendations -- just candidates for further research. To get you started, here's a brief summary of one stock I found particularly interesting.

Mind your own business
No matter how long you've been investing, there's one thing about awesome growth stocks that makes them really tricky to bag: They almost always look expensive. With a trailing P/E of 45, Chinese medical-device maker Mindray Medical isn't exactly a classic bargain, but judging from the support from our Foolish community, the company's future is just too bright to miss. In addition to being a Motley Fool Rule Breakers pick, the stock has kept a five-star rating for more than six months straight.

Mindray is China's top medical-device company, boasting a leading market share in each of its business segments: patient-monitoring devices, diagnostic laboratory instruments, and ultrasound imaging systems. It's no surprise, then, that our community loves the stock as a play on the rising demand for better health care in China. But with about half of its sales generated beyond Chinese borders, Fools are also quite intrigued with the company's international expansion plans.

Click on Mindray's CAPS page, and you'll quickly learn about what makes it special: massive scale advantages that allow it to sell high-quality products at the lowest price. Over the last few years, Mindray has turned a 25%-50% cost advantage over the competition into impressive returns on capital in the mid-teens. Of course, Fools like that pattern to continue.

So when you couple the medical-device market's booming global growth with Mindray's low-cost muscle to capitalize on it, this stock might well live up to its lofty price -- or even exceed it.

But what do I know? Let's hear what a couple of better-informed CAPS players have to say about Mindray Medical.

Back in March 2007, CAPS player pleached highlighted Mindray's international opportunities:  

The need for medical equipment is going nowhere but up, up, up. [Mindray] is already strong in China and is bringing the goods at competitive prices to the US and Europe. I'd pick them as an outperform just on the strength of their expanded offerings, but they should really crank in US and European markets that need to buy but are also keen to shave costs.

More recently, CAPS player ResidualReality offered some thoughts on how to mind Mindray's stock:

Wait for this one to have a bad day and pick it up at the lowest price possible, but look to it to perform very well overall as medical technology services are adopted more and more in its home country and abroad. Medical services prices are on the rise and this company is well positioned to continue to profit from it.

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