Let Fear Create Opportunity (VIX, SWKS, CSX, AA)

The CBOE Market Volatility Index is at 42.82, its highest level in some 13 months. Wise investors say "let pessimism create value." While I don't know where the market will head in the next few trading sessions or the next few weeks, I can spot some values lurking out there.

Skyworks Solutions (NASDAQ: SWKS) makes semiconductors and reported a phenomenal quarter a few weeks ago. The stock trades for just 10.66 times 2011 earnings estimates. Last quarter the company grew revenues by 38 percent. The stock is trading at $14.21, around 21.6 percent off its 52 week high.

CSX Corporation (NYSE: CSX) is the largest railroad in the eastern half of the United States. The company said it expects double digit growth this year and it has already hiked its dividend. The stock trades for just 12.10 times 2011 earnings estimates.

Alcoa (NYSE: AA) has had a rough go lately. Shares are down some 33 percent year-to-date. This pessimism has brought the stock down to a compelling valuation where it trades for less than book value and just 10.67 times 2011 earnings estimates.

Once the market gets out of its funk, these names offer attractive returns.