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Many stocks have flipped from hitting new 52 week highs to 52 week lows. If you feel confident that the selling is nearing an end and long term gains are in our future, here are 7 stocks you should definitely consider adding:

  1. Ford (NYSE:F): Trading at a trailing P/E ratio of 5.6, and a forward P/E of...4.96? You can distrust analyst estimates all you want. No, Ford does not deserve to be trading at 20 times earnings, but long term, sustained growth and some investor confidence should allow this battered stock to get back to the 15-20 range within the next year or two. Good enough for a 50% gain. With unemployment still hovering above 9%, the industry is not nearly as strong as it could be, but the unemployment picture should brighten over the next several years, though it will be slow. A larger workforce will contribute to increased growth.
  2. General Motors (NYSE:GM): Same case as with Ford. The worries about global growth, are legitimate, but they do feel moderately overblown. Worries that interest rates will go up to Standard & Poor's recent downgrade are unwarranted, and the bond market certainly doesn't reflect those worries. Regardless of the circumstances, a P/E of 5.18 reflects a recession valuation. There is overwhelmingly more upside than downside considering its current valuation, even if earnings were to stay completely stagnant. Chrysler, along with several other large auto companies, feel their forecasts for growth are based on very reliable fundamentals.
  3. Alcoa (NYSE:AA): It's clear economic worries have gotten this Dow stock down, but how much selling is too much selling? Alcoa wasn't particularly a high flying stock before the current correction, and it's looking very cheap on a valuation basis at a forward P/E of 7.92. Demand for Aluminum is expected to double by 2020, and Alcoa is well positioned to take advantage of that growth. Perhaps the most stunning number on Alcoa's valuation checklist is its PEG ratio of .29. For investors to be able to pay that little for growth is pretty rare, especially when you consider that the growth in question is going to be driven from emerging and new markets that are not feeling the same kind of pressure we are.
  4. Intel Corporation (NASDAQ:INTC): I bet a lot of people didn't realize Intel now has a dividend of 4% on the nose. To be able to lock in a 4% dividend on a stock that is nicely priced at a forward P/E of 8, has 2$ in cash per share, and has an outstanding balance sheet is extremely uncommon. Intel has always been a great company with a good underlying business, and its long term success is difficult to challenge. I'd feel very comfortable opening up a position given its current valuation and the excellent fundamentals.
  5. Apple (OTC:APPL): I did not expect to see Apple trading at a forward P/E of 10.97 this year. If this falls a little more with the rest of the market, we are going to be a looking at a forward P/E in the single digits! For a company that has executed to the extent that Apple has, in addition to its simple business, to be trading at these levels is a long term steal. I recently wrote an article describing Apple's fundamentals in depth.
  6. Energy Select Sector SPDR ETF (NYSEARCA:XLE)/Direxion Russell 1000 Energy Bullish 3X ETF (NYSEARCA:ERX): XLE is the energy sector basket, while ERX is a triple leveraged energy equity basket. Oil may have some considerable room to drop still, but considering everything that has happened this year, its floor should be coming up. Great companies like Exxon (NYSE:XOM), ConocoPhillips (NYSE:COP) and Halliburton (NYSE:HAL) make up a large portion of both funds, and will benefit strongly from a bounce off oil's bottom. People still need gas to fuel their cars, and demand may actually be strengthening as oil prices sink. Many travelers wanted nothing to do with long distances, but that may change with much more reasonable prices at the pump.
  7. General Electric (NYSE:GE): Although this is an incredibly complex company, overblown economic fears have pummeled this stock to a level where a 3.6% dividend is existent. This dividend allows investors to pick up significantly more yield than on a 10 year treasury, with the knowledge that 5 years from now, GE's share price will most likely be more expensive than it is currently. The 9.4 forward P/E ratio also dampens risk, and sets up the common stock component for solid gains over the next several years.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in F over the next 72 hours.