Michael Price says stocks, including Johnson & Johnson JNJ, 3M MMM, and Ingersoll-Rand IR, are cheap. "[It's] an ideal time for a stock-picker," the former boss of Mutual Series says.

Price is correct about the stocks he mentions. They are in 4-star or 5-star territory, according to Morningstar equity analysts, with both JNJ and 3M trading at 31% below our analysts' fair value estimates. JNJ and 3M haven't traded at their current P/Es of 12 and 14, respectively, for many years. Also, their balance sheets are stellar, with both firms garnering financial health grades of A, according to Morningstar's metrics. Overall, the market isn't as cheap as it was two months ago. Morningstar's Market Valuation Graph is showing the market to be 9% undervalued, but JNJ and 3M are significantly farther below our fair value estimates than that.

He makes another interesting point about TARP:   More