| We are entering the holiday season with the financial | | | | an extremely low P/E of 4.2x earnings. Once the |
| crisis still at large. With so much damage already done | | | | economy picks up again, this company is poised to |
| in the stock market, many stocks have become way | | | | take some serious market share. |
| undervalued. Value Investing is the best way to | | | | - Harry Winston Diamonds (HWD)- The famous, |
| make money while hitting rock-bottom prices. | | | | ultra-luxurious jeweler has suffered recently because |
| My mission was to find three consumer-based stocks | | | | even the wealthy are feeling the pinch. The name of |
| that are largely undervalued and will do well in the | | | | this company carries a certain prestige that I believe |
| next 9-18 months. Although many analysts have | | | | will last forever. At $4.02 per share, this stock has a |
| knocked down companies' stocks because they | | | | P/E of 1.3x earnings! That's almost as cheap as |
| expect weak 2008 holiday sales, the magnitude of | | | | stocks can get. To make the stock a little more |
| these drops in stock prices has been greatly | | | | attractive, HWD has a nice dividend as well. |
| overstated. | | | | - Macy's (M)- Macy's has struggled with this market |
| When the market rebounds, so will these stocks. | | | | like most department stores, but this 150-year-old |
| Also, when the individual companies begin to beat | | | | store is still in excellent financial shape. They are not |
| earnings estimates again, the stocks will go even | | | | riding on tons of debt like many of its peers do. |
| higher. This process will take a long time, but if you | | | | Macy's stock price has a P/E of 4.2x earnings at |
| have patience, investing in these stocks will make | | | | $7.03 per share. They will come out of this economic |
| your portfolio shine. | | | | crisis just like it did in the past. |
| 3 Rocking Stocks to Buy Before Christmas 2008: | | | | |
| | | | | Keep in mind that in a normal stock market, most |
| - Bare Escentuals (BARE)- This natural cosmetic and | | | | stocks trade at P/Es between 12x-20x earnings if |
| skin care company has all of the right stuff. They are | | | | they are not a high-growth company, so even if the |
| well positioned in a number of cosmetic stores like | | | | companies' earnings are mediocre, then the stock |
| Sephora; they also have their own retail and catalog | | | | market will price these stocks at this range when the |
| sales. Being natural gives them the eco-friendly and | | | | bear market begins to disappear. |
| healthy image that so many consumers are looking | | | | It's hard to lose when you buy stocks that are priced |
| for. Since they only have a market cap (market | | | | at rock-bottom prices and have great potential in the |
| value) of $412 million, they have a lot of room to | | | | future. Remember that you must be willing to wait |
| grow compared to Estee-Lauder (EL) with a $5.6 | | | | out the storm with these stocks, and you can thank |
| billion market cap. At $4.50 a share, BARE's stock has | | | | yourself later. |