Editor's note: An earlier version of this article included companies that did not match the criteria given. The article has been updated. We regret the error.

Investing needn't be overly complicated. At its most fundamental, investing is about buying great companies at reasonable prices. That's what Warren Buffett does, and we'd be wise to follow suit.

With that approach in mind, we used our new CAPS screening tool to pick out some of the best companies whose stocks are trading at a discount. Let's look at 10 companies that have fallen 35% or more from their 52-week highs. These companies also have market capitalizations of more than $10 billion and sport five-star CAPS ratings, the highest possible.

Remember, in the first year for which we have data, five-star companies outperformed with an average gain of nearly 28%.


Share Price


Market Cap (in Billions)

Allied Irish Banks (NYSE: AIB)




Cameco (NYSE: CCJ)


Basic Materials


China Petroleum & Chemical (NYSE: SNP)


Basic Materials


Huaneng Power












PetroChina (NYSE: PTR)


Basic Materials




Basic Materials


United Health Group (NYSE: UNH)


Health Care


Valero (NYSE: VLO)


Basic Materials


Data from Motley Fool CAPS and Yahoo! Finance as of May 5.

Of course, screens are merely a first step in the stock-selection process. Come and join us on Motley Fool CAPS to dig into these companies further. Let our 100,000-strong (and counting) CAPS community help you identify the best values in the market.

For additional investing ideas:

UnitedHealth Group and McGraw-Hill are Motley Fool Inside Value selections. NVIDIA and UnitedHealth are Motley Fool Stock Advisor picks. POSCO and Huaneng Power are Income Investor recommendation. Global Gains has recommended Allied Irish Banks. Try any of our Foolish newsletter services today, free for 30 days.

Ilan Moscovitz and John Reeves do not own shares in any of the companies mentioned in this article. But they do prefer basic materials to more complicated ones. The Fool's disclosure policy is as basic as can be.