Top Five All-Around Value Stocks

Our buy rating for Exxon Mobil has not changed since January 2004. The company's strong revenue and net income growth, along with a largely solid financial position, have contributed to this rating. Exxon Mobil reported record net income of $10.89 billion in the first quarter of fiscal 2008, reflecting a 17% increase year over year. The company also improved earnings per share 25% in the first quarter due to strong earnings and the reduction of outstanding shares. Since the same quarter one year ago, Exxon Mobil's revenue rose 36%. Based on its low debt-to-equity ratio of 0.08, the company appears to have been very successful at managing its debt levels to date.

Shares have risen in the past year. Strong earnings growth was a key factor. We believe this stock still has good upside potential in most environments other than an overall down market. However, it is important to remember that the company's performance largely depends on the movement of crude oil and natural gas prices, and any adverse pricing changes could therefore negatively impact future results.

General Dynamics (GD Quote) designs, develops, manufactures and supports technology, products and services for use across the spectrum of military operations. Businesses include: mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation. Products are as diverse as nuclear submarines, targeting systems, tactical Personal Digital Assistants and Gulfstream business-jet aircraft. In addition, a small resources group operates two underground coal mines and several stone quarries, as well as sand and gravel pits and yards.