5 ‘Must Own’ Stocks Offering Attractive Valuations And Good Entry Points

By Delian Naydenov In this article I discuss five companies that have attractive valuations and are trading at prices that offer a good entry point. In my opinion, other stocks do not offer the same relative discount in the proverbial stock “supermarket.” Specifically, due to valuation, I expect these companies to outperform all others. The first two companies pay income to shareholders in the form of dividends and the next three offer growth through well-established and proven business models. Most importantly, all five companies are undervalued relative to their peers and barring any “black swan” event are good buying opportunities. Marathon Oil (MRO) traded at around $32 per share at the time of this writing, has 703.8 million shares outstanding for a market capitalization of $22.7 billion and a dividend yield of 1.9% per year. The company has promising exploration projects for oil, gas and oil sands in the U.S. and around the world. In June of 2011, MRO spun-off its downstream operations into a separate company (for more information on the spin-off click here) and is now a pure play exploration and production company. With the demand and price of oil expected to increase, Marathon Oil is well positioned…