6 stocks set to soar

Energy stocks aren't the only ones that have been hammered lately. Ladish, a maker of steel forgings and castings for jet engines and other aircraft parts, has seen its earnings squeezed by higher steel and energy prices and its stock price halved by concerns about a slowing global economy.

The earnings worries have been exaggerated. Ladish has a strong backlog of orders from jet-engine makers like General Electric, Pratt & Whitney, and Rolls-Royce.

"Boeing has a record backlog right now," says Ladish shareholder Nick Galluccio, portfolio manager of the Gamco Westwood Small Cap fund. "Yes, there could be some push-outs and cancellations. But keep in mind that 45% of the orders Boeing has in its backlog are to replace existing aircraft." Moreover, Ladish's modest valuation - its P/E of 13 is well below its average P/E of 33 for the past five years - means the economic risk is already reflected in the stock price.

Ladish is also a relatively cheap way to get exposure to the defense sector, says John Dorfman, manager of the Dorfman Value fund and a Ladish fan. (Defense contracts account for about a quarter of Ladish's sales.) "Regrettably, we still live in a less than friendly world," says Dorfman. "Defense is a good area to be in."

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