Everyone's definition of bargain-basement stocks varies to some degree.

While there may be "cheaper" stocks on the markets, Union Pacific (NYSE: UNP), Thor Industries (NYSE: THO), and UFP Industries (NASDAQ: UFPI) bring impressive returns on invested capital (ROIC) along with discounted valuations.

ROIC measures a company's profitability compared to its debt and equity, with higher-ranking stocks outperforming their lower-scoring peers over time.

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Source Fool.com