Top 5 All-Around-Value Stocks for May 5

Sempra Energy(SRE Quote) is an energy services holding company that generates electricity and distributes and transmits natural gas in the U.S., Europe, Canada, and Mexico. A large portion of its business is conducted in California. We upgraded the stock from hold to buy in January 2009. Our rating is based on strengths such as Sempra's solvency, net income and EPS growth, and return on equity.

Although Sempra's revenue dropped in the fourth quarter of fiscal 2008, the company did outperform in comparison with the industry average. The declining revenue does not appear to have hurt the company's bottom line, as EPS improved 18.2% year over year, rising from 31cents to 35 cents. Net income also increased in the fourth quarter, rising 10.3% when compared to the same quarter a year ago. Sempra's return on equity improved slightly and can be considered a modest strength for the company. In addition, a debt-to-equity ratio of 0.93 is somewhat low and seems to indicate that the company has successfully managed its debt levels.

Looking ahead to fiscal 2009, the company reaffirmed its full-year EPS outlook of $4.35 to $4.60 per share. The company shows weak operating cash flow, but we feel that the strengths detailed above outweigh any potential weakness at this time.

Elbit Systems(ESLT Quote) develops, manufactures, and integrates defense electronic and electro-optic systems primarily in Israel, the United States, and Europe. We have rated the stock a buy since April 2007 based on the company's robust revenue growth, compelling growth in net income, good cash flow from operations, notable return on equity and impressive record of earnings per share growth.