TheStreet.com Ratings: Top 5 All-Around Value Stocks

Each weekday, TheStreet.com Ratings compiles a list of the top five stocks in five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- and publishes these lists in the Ratings section of our Web site. This list, updated daily, is based on data from the close of the previous trading session.

Today, all-around value stocks are in the spotlight. These are stocks of companies that meet a number of criteria, including annual revenue of more than $500 million; lower-than-average valuations, such as a price-to-sales ratio of less than 2; and leverage that is less than 49% of total capital.

In addition, they must rank near the top of all stocks rated by TheStreet.com Ratings' proprietary quantitative model, which looks at more than 60 factors. The stocks must also be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. They are ordered by their potential to appreciate.

Note that no provision is made for off-balance sheet assets such as unrealized appreciation/depreciation of investments, market value of real estate, or contingent liabilities that might affect book value. This could be material for some companies with large underfunded pension plans.

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First up is Volvo(VOLV Quote), which sold its car business to Ford in 1999, but still makes trucks, buses, construction equipment and aircraft engine parts. It has had a buy rating since March 2005.

The company has shown stellar revenue growth, solid stock price performance, outstanding EPS growth and compelling growth in net income. These strengths outweigh the company's low profit margins.