What's your investment style? Sooner or later, all investors are faced with 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, and

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 price-to-earnings 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 in which 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-ed
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, rapidly 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 a possible five) from our pool of more than 60,000 individual and professional investors.


Estimated 5-Year Earnings Growth Rate

PEG Ratio

Current CAPS Rating

Vimpel Communications (NYSE:VIP)




National Oilwell Varco (NYSE:NOV)




Chesapeake Energy (NYSE:CHK)




Unit Corp. (NYSE:UNT)




Manitowoc (NYSE:MTW)




CapitalSource (NYSE:CSE)




Arrow Electronics (NYSE:ARW)




Data from Yahoo! Finance and Motley Fool CAPS (as of July 16 close).

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.  

Manitowoc, a Wisconsin-based company named after the quiet lakeshore community it resides in, barely even makes it onto our list, with a PEG of 0.99 and a four-star CAPS rating. But with a dominant competitive position, scintillating tailwinds at its back, and 138 All-Star bulls calling outperform, this is one obscure stock you should probably keep your eyes on.

Manitowoc operates a pretty odd combination of businesses -- cranes, food-service equipment, and marine products. The company says it is the worldwide market-share and product-innovation leader in every one of those segments. Impressive. However, it's Manitowoc's construction-crane business -- which accounts for more than 75% of the company's revenue -- that has our CAPS community totally hooked. And understandably so. Any time you hear about cranes dotting the skyline of the world's fastest-growing markets, there's a good chance Manitowoc manufactured them.  

Why is that? Well, Manitowoc is the only global crane company with a long-term manufacturing presence in China, and it derives more than 50% of its revenue outside the Americas. Naturally, this international foothold has translated into booming profits for Manitowoc. Over the past five years, net income has grown at a compounded rate of 105%, while free cash flow has remained positive. Over the same time period, the stock has returned more than 400%.    

Of course, you'll have to figure out for yourself whether the stock can even come close to those returns going forward. But when you consider the company's backlog of roughly $2 billion, healthy forecasted growth of the world construction market, and a fair PEG ratio, Manitowoc seems well positioned to outperform. Of course, all five Wall Street firms tracked on CAPS that are covering Manitowoc feel the same way, so I'm not exactly sticking my neck out here.   

Here's yet another group of CAPS contestants also playing the crane game:   

  • CAPS All-Star PartyMDK likes Manitowoc's relative obscurity: "This company must be flying below the radar because of its seemingly odd collection of businesses. ... China and India are gobbling up cranes and I could see this stock flying north once it attracts a little more attention. Wisconsin may be cold but this company is hot."
  • CAPS All-Star ThyPeace agrees and says the company is closer to its customers than you'd think: "They've consolidated their industry by buying their competitors, continue to increase their equity and decrease their debt, and they understand that China will need a whole lot of cranes to industrialize itself. They're from a small, conservative Wisconsin town that has integrated a significant Hmong population in the last 25 years."
  • Finally, Turfscape leaves us with a quality check: "Huge cranes, gigantic boats, government contracts and inroads in China. Add that up and you have steady growth over a multi-year period. Manitowoc Company manufactures outstanding equipment that perseveres through the cyclical 'feast or famine' nature of its industries."

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 the value and growth investing worlds. Oh, and it's absolutely free. Now, that's what I call a reasonable price.  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake Energy is a Motley Fool Inside Value pick. The Fool has a disclosure policy.