7 Growth Stocks on Sale

What's your investment style? Sooner or later, all investors are faced with the challenge of having to answer this pretty 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 joined at the hip, and
2. The most awesome growth stocks are also undervalued stocks.

The best of both worlds
The key to investing is putting your money on the most attractive risk/reward propositions that Mr. Market has to offer. And 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-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 one, these stocks have received a four- or five-star rating (out of 5) from our pool of more than 105,000 individual and professional investors.

Data from Yahoo! Finance and Motley Fool CAPS.

As always, don't take these stocks as well-formulated investment recommendations, but rather as candidates for further research.

To get you started, here's a brief summary of a stock I find interesting.

Intense ABB workout
It's no secret that emerging markets provide some of the biggest opportunities in our lifetime; the trick, of course, is finding sound ways to play. ABB Ltd., a provider of power and automation technologies, might just be large and diversified enough to pass the test. An overwhelming 98% of the 439 CAPS All-Stars who've chimed in on the $69 billion Swiss-based multinational like it to outperform.

ABB serves electric, gas and water, and power transmission markets in some 100 countries, so naturally, Fools love the stock as a play on rampant global demand for reliable power. Specifically, players point to the demand for energy infrastructure equipment, cleaner "greener" technology demand, and high exposure to hyper-growth markets (China and India, of course) as fuel for continued blowout results. In the latest quarter, ABB posted sales and earnings growth of 29% and 87%, respectively.

In addition to scintillating growth on the top and bottom lines, ABB's financial position isn't too shabby. Its net cash position stands at about $5.6 billion, while management has consistently utilized the strong cash flows to buy back shares.

The stock is up more than 150% over the last two years, which might make readers a bit nervous. But as Peter Lynch once wrote, "Shame on all those experts who advise clients to sell automatically after they double their money."

This Fool wouldn't even think of doing such a thing, especially when the ABB story still sounds good, and the price -- relative to its future growth potential (as indicated by the trusty PEG) -- still seems pretty reasonable.

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

A bit more than a year ago, pralden elaborated on ABB's powerful opportunities:

The world is this company's oyster. They have clean technology for modern power generators as well as for future generators, including nuclear. With the restructuring of the power industry and the race for cleaner technology, ABB is in the thick of it.

Back in March, CAPS All-Star mirwinthegreat shared his close connection with the stock:

This company is in outstanding financial shape and has a ton of cash. The orders keep coming in. They do things right and they do things faster than anyone else. I have personally owned this stock since it was about $6, and it is about to make another run. If I had to own just one stock this would be 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 stocks, 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. Oh, and it's absolutely free. Now, that's what I call a reasonable price.