Late Summer Stocks To Love

The stock has a positive free cash flow yield of 5% and a low price-to-economic book value ratio of 1.3. Darden Restaurants will be earning good grades for investors for those who hold it in their portfolios.

BJ Services remains on our list of most attractive stocks for August. Investors have little downside risk and strong upside potential with any stock that has a 0.7 price-to-economic book value ratio. That ratio implies the stock market believes the company's profits will permanently decline by 30%.

In this situation, the stock market has taken most of the risk out of the stock, leaving investors with more upside potential. When looking at the positive economic earnings per share ($1.95), top-quintile ROIC in the last fiscal year and a free cash flow yield at 3%, this stock holds little risk of earning anything but high marks for investors.

Courtsey of: http://www.forbes.com/personalfinance/2007/08/23/lexma
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