Top Five Mid-Cap Stocks

Its strengths outweigh the company's subpar growth in net income.

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Contracting and construction management services company Perini Corporation(PCR Quote) has been rated a buy since November 2006. It had a record backlog of $8.60 billion at the end of the first quarter of its fiscal 2007, which offers higher operating visibility because more than 90% of backlog consists of cost-plus/guaranteed maximum price contracts. Perini is rated among the top 10 U.S. contractors working in Iraq and Afghanistan.

Its revenue increased by 61.1% in the quarter compared with the same period last year, primarily due to significant new contracts in the hospitality and gaming market. Net income increased by 238.7% during the same period.

The buy rating is not risk-free, since its business is very cyclical in nature and sensitive to changes in macroeconomic conditions. Also, an increase in input costs or any delay in the completion of projects could shrink its margins.

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FactSet Research Systems(FDS Quote) provides financial intelligence to the global investment community. The company shows robust revenue growth and has no debt to speak of. Powered by strong earnings growth of 36.58% in the third quarter of fiscal 2007, FactSet's stock has soared by 45.35% in the year prior to July 12. It has demonstrated a pattern of EPS growth over the past two years, a trend that should continue. FactSet's stock should continue to go higher even though it has already enjoyed a nice gain the last year. Although the company may harbor some minor weaknesses, they are unlikely to have a significant impact on results.