Precision's net income has also been increasing as a result of margin expansion and higher income from continued operations (which were partially offset by higher interest expense and taxes). Because Precision depends on the aerospace industry for its top-line growth, any slowdown in that industry could lead to reduced demand for its products. Other possible concerns include fluctuations in the prices of basic materials and any unseen difficulty in integrating recent acquisitions.
Russian dairy product and beverage manufacturer Wimm-Bill-Dann Foods(WBD Quote - Cramer on WBD - Stock Picks) has earned a buy rating since December 2005. The company has shown impressive revenue growth, net income increases and significant growth in return on equity. Its return on equity in the last quarter exceeded that of the same quarter one year ago, a clear sign of strength within the company. These strengths outweigh the stock's premium valuation on the basis of our review of its current price compared with earnings and book value.
Harsco(HSC Quote - Cramer on HSC - Stock Picks) provides industrial services and engineered products to the steel, construction, railways and energy industries. It has been rated a buy since July 2005. The company demonstrates robust revenue growth, notable return on equity, net income growth that has outperformed its industry average and a pattern of positive EPS growth over the past two years. Powered by these strong financial results, Harsco's stock has appreciated by 45.55% in the 12-month period prior to July 13. The growth has put it at a price level that is relatively expensive compared with the rest of its industry, but given the Harsco's strengths, the higher price level is justified.



