3 Stocks Almost Priced Right: Life Time Fitness, Inc. (LTM), Kohl’s Corporation (KSS), Family Dollar Stores, Inc. (FDO)

3 Factors to Consider

1). Valuation.  All of these companies trade at very reasonable price to earnings multiples.  More importantly, their valuations will likely improve once their underlying fundamentals improve.

2). Growth Potential.  All of these companies have the potential for double digit growth.  Life Time Fitness and Family Dollar are in the best position to realize that potential.

3). Economic Conditions.  These three stocks are all affected differently by changes in the economy.  Family Dollar, for instance, is a good stock to own in a tough economy whereas the performance of Life Time Fitness is more correlated to the overall economy.

My Foolish Take

These three companies have valuations and underlying fundamentals that merit placing them on your watch list.  Of the three, I like Life Time Fitness’ business model the most.  Life Time Fitness has an effective CRM system, their gyms are amazing, they have a deep understanding of their target market, they have the ability to set trends, and they are poised to benefit from selling more high-margin products and services.  I also like the fact that Dollar General’s stock price has almost no correlation to the overall economy and Dollar General’s potential for growth.  Overall, I feel that these are some of the best bargains in the current market!

The article 3 Stocks Almost Priced Right originally appeared on Fool.com and is written by Ryan Peckyno.

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