Top Five Fast-Growth Stocks

Based primarily on a robust top-line performance and expansions to both margins and the bottom line, we have rated Amedisys a buy since January 2005. Amedisys also has a strong liquidity level and low leverage. For the third quarter of 2007, the company's cash and cash equivalents grew sevenfold to $72.5 million, while its debt-to-equity ratio improved significantly to 0.06 from 0.21 a year ago.

Amedisys has a strong outlook thanks to recent acquisitions. During the third quarter, the company acquired IntegriCare to strengthen its Home Health and Hospice Care service segments. Bear in mind, however, that the company's revenue and earnings could be affected by any adverse changes in Medicare rates and reimbursement methodologies or any challenges related to integration of recent acquisitions.

Atwood Oceanics (ATW Quote - Cramer on ATW - Stock Picks) is a Houston-based international drilling contractor. The company also provides related support, management, and consulting services.

We have rated this company a buy since September 2004, based on its revenue growth, solid financial position, EPS improvement, and solid stock performance. Revenue rose 49% for the fourth quarter of 2007 to $121.6 million, up from $81.8 million in the same period a year ago. Atwood's debt-to-equity ratio is very low at 0.03, implying very successful management of debt levels. In 2007, the company increased its fully-year bottom line to $4.37 a share from $2.75 a share in 2006. The company has demonstrated a pattern of positive earnings per share growth over the past two years. Finally, the stock has surged 72% over the past year, powered by strong earnings growth of 128.37%.

Regarding the stock's future course, although almost any stock can fall in a broad market decline, Atwood should continue to move higher despite its substantial gain in the past year. Risks to the rating include any pricing fluctuations in the oil and gas industry, the company's ability to secure adequate financing and governmental regulation and environmental matters.

Darling International (DAR Quote - Cramer on DAR - Stock Picks) provides rendering, recycling, and recovery solutions to the food industry, processing animal byproducts and used cooking oil into meat and bone meal, tallow and yellow grease. The company also provides grease-trap cleaning services to food service establishments. Darling operates 24 facilities throughout the U.S., as well as a fleet of nearly 640 trucks and tractor-trailers to collect raw materials. The company markets its finished products worldwide to producers of oleo-chemicals, soaps, pet foods and livestock feed.

We have rated Darling a buy since January 2007. Boosted by higher finished-goods costs and increased raw material volumes, Darling's revenue grew 49% year over year for the third quarter of 2007 to $171.83 million. Gross profit margin and operating margin expanded to 24% and 12%, respectively. Consequently, net income for the third quarter increased more than sixfold to $12.1 million, or 15 cents a share, from $1.8 million, or 2 cents a share, a year ago. Darling recently transferred its common stock from the American Stock Exchange to the New York Stock Exchange.

Additional regulations on the use of feed by the Food and Drug Administration could adversely affect the company. In addition, the company may fail to achieve the benefits expected from its acquisition of National By-Products.

Our quantitative rating is based on a variety of historical fundamental and pricing data and represents our opinion of a stock's risk-adjusted performance relative to other stocks.

However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company.

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