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3 Cheap Stocks With Great Management

These management teams should be good stewards of shareholder capital in today's uncertain environment.

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Looking for management teams that would be good stewards of your capital is always a good idea before you invest. You don't want executives who are going to peruse value-destroying acquisitions or only look out for the short term. Given how many opportunities firms have to make bad choices in today's environment, it is even more important to have a solid set of hands on the wheel.

Tight cost controls, the divestitures of noncore businesses, and an improving economy have allowed most firms to post impressive earnings growth and cash levels since the depths of the Great Recession. To be sure, the stronger financial position firms find themselves in today is good news; it means most companies are ready to withstand another economic downturn when it comes. But having a lot of extra cash and financial flexibility on hand has risk, too. Management teams won't be able to sit on the pile indefinitely, and most firms are on the verge of having to make some important capital-allocation decisions. The quality of those investments is going to affect the performance of those firms for years to come.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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