Lincoln, Teva, PetMed: Fast-Growth Stocks

BOSTON (TheStreet) -- These companies are projected to increase revenue and profit by at least 12% in the coming year and have "buy" ratings from our 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.

Lincoln Educational Services(LINC Quote) provides career-oriented education services.

The numbers: Second-quarter profit surged six-fold to $7.4 million and earnings per share multiplied five-fold to 27 cents, restrained by a higher share count. Revenue grew 51% to $128 million. Lincoln's gross margin rose from 63% to 65% and its operating margin increased from 3% to 11%. The company has less-than-ideal liquidity, with just $13 million of cash. A debt-to-equity ratio of 0.2 indicates modest leverage.

The stock: Lincoln has advanced 55% this year, more than major U.S. indices. The stock trades at a price-to-earnings ratio of 17, a discount to the market and education service peers. The company doesn't pay dividends.

Teva Pharmaceutical Industries(TEVA Quote) is an Israel-based pharmaceutical company.

The numbers: Second-quarter net income dropped 2% to $521 million and earnings per share fell 11% to 58 cents, hurt by a higher share count. Revenue ascended 20% to $3.4 billion. Teva's gross margin dropped from 58% to 54%, but its operating margin increased from 23% to 24%. A quick ratio of 0.9 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.4 reflects conservative leverage.

The stock: Teva is up 19% this year, beating the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 52, a premium to the market and pharmaceutical peers. Shares pay a 1.2% dividend yield.

PetMed Express(PETS Quote) sells pet medications.

The numbers: Fiscal second-quarter net income increased 8% to $6.3 million and earnings per share jumped 12% to 28 cents, boosted by a lower share count. Revenue grew 5% to $62 million. PetMed's gross margin remained steady at 38%, but its operating margin rose from 14% to 15%. The company has an ideal financial position, with $56 million of cash and no debt.

The stock: PetMed is down 12% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 14, a discount to the market and internet retail peers. Shares pay a 2.6% dividend yield.

Medco Health Solutions(MHS Quote) is one of the largest pharmacy benefit managers in the U.S.

The numbers: Second-quarter net income rose 19% to $312 million and earnings per share jumped 26% to 64 cents, boosted by a lower share count. Revenue increased 17% to $15 billion. Medco's gross margin was unchanged at 7% and its operating margin remained steady at 4%. Medco has less-than-ideal liquidity, reflected in its quick ratio of 0.9. A debt-to-equity ratio of 0.8 indicates reasonable leverage.

The stock: Medco has advanced 36% this year, more than major U.S. indices. The stock trades at a price-to-earnings ratio of 24, a premium to the market and health care peers. The company doesn't pay dividends.

Neogen(NEOG Quote) sells products to test food safety.

The numbers: Fiscal first-quarter net income increased 18% to $4.4 million and earnings per share climbed 16% to 29 cents. Revenue grew 12% to $32 million. Neogen's gross margin rose from 55% to 57% and its operating margin ascended from 20% to 21%. The company has an ideal financial position, with $24 million of cash and no debt.

The stock: Neogen is up 28% this year, outpacing the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 33, a premium to the market and health care supply peers. The company doesn't pay dividends.

-- Reported by Jake Lynch in Boston.