One of the most forgotten axioms in investing is that price is what you pay, but value is what you get. Stated differently, the money you make on an asset transaction is made at the time of purchase, you just don't know it until you sell. Thanks to a 10% sell off in the United States equity markets in May, the list of stocks hitting new lows has expanded. While one has to be careful navigating stocks in an arena of falling prices, some interesting names stick out.

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Looking Globally
With all eyes focusing on Europe, and whether or not it can contain its economy and financial system from a total meltdown, European stocks are getting hammered much in the same way that U.S. equities did back in 2008 and 2009. Opportunistic investors were rewarded for buying U.S. equities back then. Buying in Europe could have the same results.

Oil giant BP (NYSE:BP) now trades for $36.59 and pays out a dividend of 5.2%. While the company is still sorting out its ultimate liability from the Gulf oil spill, the company generates a lot of cash flow. Like other major oil companies that have faced similar accidents, BP is a giant in the industry and will continue to be so. In the meantime, investors are getting the highest dividend payout amongst the oil majors and paying less than five times earnings to do so while they wait. BP's valuation is nearly half of Exxon Mobil's (NYSE:XOM) valuation, yet BP's dividend yield is almost twice as much.

SEE: Valuing A Stock With Supernormal Dividend Growth Rates

Healthy Stocks on Sale
Back here in the U.S., concerns over Europe have sent fears throughout the stock market. So much so, that healthy quality businesses like Walgreen (NYSE:WAG) is trading at a 52-week low and yielding 3%. Trading at 10 times earnings, Walgreen shares are depressed over a lawsuit with Express Scripts. This week, both companies announced to end that lawsuit. Compared to rival CVS Caremark (NYSE:CVS), Walgreen trades at a significant discount for an equally excellent business. CVS shares trade for 17 times earnings and yields 1.5%. Now with the lawsuit dropped, Walgreen is trading at a significant discount to its future growth potential. Americans are getting older and need convenient, easy to shop drugstores like Walgreen and CVS.

SEE: Litigation: Are Your Investments At Risk?

The Bottom Line
Shares in high quality businesses are finding themselves in the bargain bin as a result of investors overreacting at the first sign of bad news. Undoubtedly, the global macro environment is amplifying the reaction and that is creating favorable prices for value seeking investors.

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At the time of writing, Sham Gad did not own shares in any of the companies mentioned in this article.

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