The CAPS Screen: 5-Star Companies at Fire-Sale Prices

By Ilan Moscovitz and John Reeves:

Editor's note: An earlier version of this article included companies that did not match the criteria given. The article has been updated. We regret the error.

Investing needn't be overly complicated. At its most fundamental, investing is about buying great companies at reasonable prices. That's what Warren Buffett does, and we'd be wise to follow suit.

With that approach in mind, we used our new CAPS screening tool to pick out some of the best companies whose stocks are trading at a discount. Let's look at 10 companies that have fallen 35% or more from their 52-week highs. These companies also have market capitalizations of more than $10 billion and sport five-star CAPS ratings, the highest possible.

Remember, in the first year for which we have data, five-star companies outperformed with an average gain of nearly 28%.

Of course, screens are merely a first step in the stock-selection process. Come and join us on Motley Fool CAPS to dig into these companies further. Let our 100,000-strong (and counting) CAPS community help you identify the best values in the market.