Volvo Purrs as Top Fast-Growth Stock

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, fast-growth stocks are in the spotlight. These are stocks of companies that are projected to increase revenue and profit by at least 12% in the coming year and rank near the top among all stocks rated by our 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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Today leads off with Volvo(VOLV Quote), which sold its car business to Ford in 1999 but which 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 EPS improvement and compelling results in net income. These strengths outweigh the company's low profit margins.