Stocks we love

Forget flowers and chocolates. Our Valentines should make you money. Check out our picks for this year's most lovable stocks.
By Ben Rooney, CNNMoney.com staff writer

How we chose the stocks
In honor of Valentine's Day, we carefully selected five stocks that will make your portfolio swoon. We screened thousands of stocks to come up with the most appealing combination of earnings and sales growth, reasonable valuations and some of the sexiest balance sheets around.
But we know how easy it is to get your heart broken in a market as volatile as this. So we picked stocks that we think you'll want to commit to for the long term.
If you want some financial love this Valentine's Day, look no further.
Garmin
(GRMN) P/E: 18.4, EPS Gr: 19% Just as you can count on Garmin's global positioning systems to prevent you from getting lost, you can probably depend on Garmin's strong market position to keep you from a loss in your portfolio.
Yes, the stock has slipped recently due to competition from rival GPS makers and fears that an economic slowdown will crimp sales. These are valid concerns but one analyst thinks the sell-off is overdone.
"While we can't ignore the possibility that a U.S. economic slowdown could affect Garmin, we believe any impact is likely to be more modest than the current share price suggests," wrote Needham analyst Richard Valera in a research note.
Also, Garmin announced late last month it will enter the smartphone market with its nüvifone. The device will feature GPS, of course, as well as mobile Web-browsing capabilities.
Though some questions remain about which carrier will support the gadget and how much it will cost, the nüvifone has strong potential, according to Deutsche Bank analyst Jonathan Goldberg. "All in all, we believe Garmin has released an intriguing teaser," he said.
Laboratory Corp of America
(LH) P/E: 16.5, EPS Gr: 15% LabCorp's allure is undeniable to investors looking for strong growth.
The nation's second-largest independent clinical laboratory company captured our hearts when it announced recently that it expects 2008 net income to be in the range of $4.74 to $4.90 per share. Wall Street analysts were expecting 2008 earnings of $4.15 per share.
Among LabCorp's many charms: the company reported healthy cash flow in its last quarter, is expected to complete three acquisitions by the end of the first quarter and is likely to continue its aggressive share repurchase activity.
"Investors should take solace that the slowing economy has not significantly affected clinical laboratory operations and that [LabCorp.'s] focused strategy is poised to yield strong returns in 2008," wrote Bank of America analyst Robert Willoughby in a recent research note.
Nike
(NKE) P/E: 17, EPS Gr: 14% We've had a long-term love affair with Nike. The athletic apparel maker made our list of "Stocks we love" in 2005, back when the company's international exposure first stole our hearts.
Since then, Nike has continued to see strong growth overseas, particularly in China, but domestic sales have held up surprisingly well despite economic instability. In its most recent earnings report, the company said U.S. revenues increased 7%.
"Nike is best positioned to weather the storm given its premier brands, global reach and consistently solid execution," JP Morgan analyst Robert Samuels wrote in a recent research note.
What's more, Nike stands to benefit from a number of large sporting events this year. Both the Beijing Olympics and the European Soccer Championships will provide huge sales opportunities for new products that Nike has in store.
Precision Castparts Corp
(PCP) P/E: 16, EPS Gr: 20% Precision Castparts may not be the sexiest stock on our list but the company's financials are are certainly eye-catching.
The maker of aerospace and automotive components said profit jumped 55% in its fiscal third quarter, which ended in January. The company cited strong sales across all major segments. And like the other companies on our list, Precision Castparts is well positioned to withstand an economic slowdown.
Demand for aerospace components remains robust despite the gloomy economic climate, according to JP Morgan analyst Joseph Nadol.
What's more, the stock trades at a discount to its industry counterparts. Nadol thinks it deserves to trade at a higher valuation than its peers.
"We believe Precision Counterpart's much higher than average growth rate, driven by smart acquisitions, efficient operations, and increasing market share justify a premium to the group," Nadol wrote in a recent research report.
Tata Motors
(TTM) P/E: 15.8, EPS Gr: 20% Tata Motors, India's largest automobile company, is our long-distance lover.
The stock is listed on the New York Stock Exchange as an American Depository Receipt (ADR), which means investors in the U.S. can buy Tata shares without having to open an Indian investment account or worry about exchange rates.
Tata made headlines recently when it unveiled the world's cheapest car, the Nano, which sells for as low as $2,500. With the Nano, Tata could tap into the rapidly growing market of middle-class buyers in emerging economies like India and China.
Also, Tata has a number of promising acquisitions and partnerships in the works. Tata is in talks with Ford to buy the American carmaker's Jaguar and Land Rover brands. And the company's manufacturing subsidiary recently signed a deal to produce parts for Boeing's 787 Dreamliner.