First Financial, Pegasystems: Top 5 Stocks

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BOSTON (TheStreet) -- The following mid-cap companies have market values between $500 million and $10 billion and receive "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. They're ordered by their potential to appreciate, starting with the company with the best growth prospects.

Church & Dwight(CHD Quote) sells household products, including Arm & Hammer Baking Soda and Brillo Pads.

The numbers: Second-quarter net income increased 27% to $58 million and earnings per share climbed 23% to 88 cents, restrained by a higher share count, as revenue increased 5% to $623 million. The operating margin ascended from 14% to 16% and the net margin passed 9%. A quick ratio of 1.2 demonstrates ample liquidity and a debt-to-equity ratio of 0.5 indicates conservative leverage.

The stock: Church & Dwight is up 3% in 2009, underperforming major U.S. indices. The stock trades at a fair price-to-earnings ratio of 19, but offers a weak dividend yield of 1%. The company's record of consistent earnings growth regardless of economic conditions makes it an attractive investment.

Monro Muffler Brake(MNRO Quote) provides undercar repair and tire services.

The numbers: Fiscal first-quarter net income jumped 21% to $9.4 million and earnings per share climbed 18% to 46 cents as revenue increased 6% to $128 million. The operating margin rose from 12% to 13% and the net margin inched past 7%. Monro has a weak cash position, with just $3 million of reserves. But a debt-to-equity ratio of 0.5 demonstrates conservative leverage.

The stock: Monro is up 2% in 2009, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 20, indicating a slight premium to the market, and offers a 1.1% dividend yield, less than the average of S&P 500 companies. Monro is benefitting from a pullback in consumer spending on new cars and auto-dealership closures.