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The market has had a remarkable run since March 2009. Equity Indexes have run up over 100% in the fastest market recovery ever measured. However, the markets look more and more stretched and significant headwinds are on the horizon including inflation, European Debt Contagion, the end of QE2, and gas rising to over $4/gallon. One of the few pockets of value left is stocks with good balance sheets, growing earnings/revenues, and price earnings ratios under 10 times next year’s earnings. Here are three to consider:

Marvel l Technology Group (MRVL) - Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, and digital signal processing and embedded microprocessor integrated circuits. The company is selling at under 11 times this year’s projected earnings and just 9.5 times next year’s consensus. The balance sheet is pristine and contains over $4.50/share in net cash. Recent events in its mobile business and excessive inventory have caused earnings estimates to come down significantly over the last ninety days. However, MRVL is projected to have double digit revenue gains next year and given its cash on the balance sheet, low PEG and current valuation, this stocks seems to have significant upside.

Aetna (AET) - Aetna Inc. operates as a diversified health care benefits company in the United States. It offers a range of health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, and disability plans, as well as medical management capabilities and Medicaid health care management. The company operates in three segments: Health Care, Group Insurance, and Large Case Pensions. The Health Care segment provides medical, pharmacy benefits management, dental, behavioral health, and vision plans. Aetna is selling at less than 11 times this year’s earnings and 9 times next year’s consensus. AET has significantly beat earnings estimates for the last four quarters and 2011, and 2012, consensus estimates have increased 15% over the last ninety days. It has an A- rated balance sheet and broadly diversified product line. It has a dividend yield of 1.5%.
Gilead Sciences (GILD) - Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. GILD sells at less than 10 times this year’s earnings and 9 times next year consensus. Balance sheet has more than 2 billion in cash than debt. This is a solid stock, with good prospects and rock bottom valuations. Both S&P and Credit Suisse have a $48 price target on this equity.
Source: 3 Stocks With Growing Earnings, Pristine Balance Sheets and PE Ratios Under 10