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Life Technologies Corporation (NASDAQ:LIFE) is one of the most traded stocks, with an average volume of over 2.1 million shares traded daily. Should internet investors concentrate on this stock because it is popular?

No. As simple as it sounds, you are better off screening for more attractive stocks than focusing on stocks with the highest trading volumes. Instead of popularity, LIFE's earnings and future cash flows will determine its value. The future financial potential of a stock can be gauged by using financial metrics to determine how cheaply a stock is priced, its ability to weather hardship, and its growth potential.

As alternatives to LIFE, consider the following stocks with strong track-records and solid credit scores:

Ticker

Company

Industry

10-Year Average ROE

Altman Z-score

AOSL

Alpha & Omega Semiconductor

Semiconductor - Specialized

9.8%

3.86

ASYS

Amtech Systems Inc.

Semiconductor Equipment & Materials

2.3%

3.17

ENS

EnerSys

Industrial Electrical Equipment

4.9%

3.40

FSTR

LB Foster Co.

Basic Materials Wholesale

9.6%

5.15

GIII

G-III Apparel Group, Ltd.

Textile - Apparel Clothing

8.1%

3.50

ICFI

ICF International Inc.

Management Services

8.2%

3.94

LIFE

Life Technologies Corp

Medical Laboratories & Research

1.9%

2.00

Unlike LIFE, these alternative stocks are all categorized as "safe" according to the Altman Z-score,* indicating that they are not considered bankruptcy risks. Moreover, the average 10-year return on equity demonstrates that these six stocks have grown shareholder wealth over the long term. It is clear from these two metrics that each of these six alternative stocks is a "quality" stock capable of weathering bad times and delivering positive long-term results.

What's more, these stocks are cheaper and have higher growth prospects:

Ticker

P/E

P/S

P/B

EPS growth past 5 years

EPS growth next 5 years

AOSL

11.46

0.75

0.99

67.5%

20.0%

ASYS

3.85

0.35

0.73

45.9%

35.0%

ENS

13.41

0.74

1.72

28.1%

13.0%

FSTR

15.03

0.56

1.13

33.8%

10.0%

GIII

9.2

0.42

1.45

37.8%

17.5%

ICFI

16.19

0.65

1.39

46.2%

14.2%

LIFE

22.34

2.35

1.92

25.3%

10.0%

Based on lower price-to-earnings ratios, price-to-sales ratios, and price-to-book ratios, these stocks are cheaper than LIFE at current market prices. Better yet, they have better growth prospects according to analyst projections and past growth trends. Rather than restrict yourself to concentrated investments in one popular stock like LIFE, consider a diversified mix of these six securities as a more attractive alternative.

*Please read the article disclaimer.

Source: Life Technologies: Consider These 6 Alternate Investments