TheStreet.com Ratings: Top 10 All-Around Value Stocks

Each weekday, TheStreet.com Ratings compiles a list of the top 10 stocks in five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- and publishes these lists in the Ratings section this Web site.

Today we look at all-around value stocks. 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 our proprietary quantitative model, which looks at more than 62 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, under-funded pension plans.

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

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