Top Five Mid-Cap Stocks

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, mid-cap stocks are in the spotlight. These are stocks of companies that have market capitalizations of between $500 million and $10 billion that rank near the top of 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 begins with Valmont Industries(VMI), which produces fabricated metal products. It has been rated a buy since August 2005. The company's revenue grew 18.7% in the second quarter of 2007 over the year-earlier period, exceeding the industry average of 4.6%.

Its debt-to-equity ratio of 0.55 is below the industry average, implying that there has been successful management of debt levels. Valmont has demonstrated a pattern of positive EPS growth over the past two years, a trend that should continue.

Powered by strong earnings and other factors, the company's stock increased 49.37% in the 12 months prior to Aug. 3, and while the stock is now somewhat expensive compared with its industry peers, the company's strengths justify the higher price level.