I've updated my watch list. I currently don't own any of these. I plan to buy into one or more them after closing out some other positions, but that requires either: my gainers to stop rising, or my losers to rebound. So the top contenders on my current watch list are: CHAP (Chaparral Steel), PCP (Precision Castparts), GT (Goodyear Tire & Rubber), SHW (Sherman Williams), and T (AT&T).
I'm not going to get into the details of why I like these. Suffice it to say that they fit my desired trading profile: low debt, steady cash flow, healthy growth (current and forecast), decent returns (ROA, ROE, ROI). That covers the first 4 stocks. Then AT&T is generally touted by many pundits. Even if they don't receive that upcoming huge telco contract from the federal government, they're already growing and future quarters will start to show positive signs from the Cingular acquisition. Plus there's the intangible "iPhone effect" that may show up later this year.
Remember, never buy a stock because I mention it. If I were that good, then Warren Buffett would hire me.