Small Caps vs. Large Caps
Usually, the good bargains are in the small cap arena due to institutional investor restrictions but the large cap screen (market cap of 2 billion+) currently has a hybrids of a)bargain and b) high quality. Take for example the top 25 stocks with a market cap of 2 billion, my favorite screen.
Accenture (NYSE:ACN)- I held this puppy in the past and missed it when it went below $25. Is there a better IT company out there? Ok, maybe IBM. P/E 11
Coach (NYSE:COH) - Do not want to be in consumer sector until things get better, but company continues to be cash flow positive in this tough environment. P/E 6
Dell (NASDAQ:DELL)- Their computers might be worthless, but you have to admit their financials look yummy. P/E 7 (ttm)
Microsoft (NASDAQ:MSFT)- Despite recent layoffs and the inability to gain ground in online advertising arena the company continues to produce tons of free cash flow. I love its balance sheet but I could not pull the trigger for some reason. P/E 9.21!
eBay (NASDAQ:EBAY)- Another cash machine whose earnings were not too good. Somewhat of a moat considering the number of buyers and sellers it has. In addition, thousands , if not millions, of individuals make their living on eBay.P/E 8!!
Except for Accenture (NYSE:ACN), the other four are household names with solid balance sheets. Again, these are from the top 25, if we screen for the top 50 other well known names appear such as Adobe (NASDAQ:ADBE), Exxom (NYSE:XOM), DISH Networks (NASDAQ:DISH), Northrop (NYSE:NOC),United Technologies (NYSE:UTX),etc.
Again, I am not saying these stocks are cheap, in total I have done some analysis on about 3 on the above companies mentioned and only own eBay (NASDAQ:EBAY). You should use the companies mentioned above only as a starting point.