Top Five Fast-Growth Stocks -- April 7

Updated from 6:59 a.m. EDT

Each business day, 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 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 of all stocks rated by our proprietary quantitative model, which looks at over 60 factors.

In addition, the stocks must be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. Please note that definitions of revenue vary by industry, and this screen does not make adjustments for acquisitions, which can materially affect posted results. Likewise, earnings-per-share growth may be affected by accounting charges, share repurchases and other one-time items.

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.

Fast-Growth Stocks that Could Double

Bucyrus (BUCY Quote) designs, manufactures and markets equipment for use in surface mining. Products include draglines, electric mining shovels and rotary blasthole drills. The company also provides the aftermarket replacement parts and service for these machines.

Over the life of a machine, customer purchases of aftermarket parts and services generally exceed the original purchase price of the machine. Bucyrus has a network of 26 sales and service offices located in all countries with major surface mining operations, as well as manufacturing facilities in Wisconsin.

Bucyrus has been rated a buy since July 2006. Bucyrus reported impressive revenue growth of 167% year over year in the fourth quarter of 2007. Net income also grew, rising to $61.9 million from $17.5 million a year ago. The company also reported significant earnings per share improvement in the most recent quarter. EPS improved to $1.64, up from 56 cents in the fourth quarter of 2006. It appears that the company's revenue growth helped boost EPS, and we feel that the pattern of EPS growth over the past two years should continue.

Powered by its strong earnings growth and other factors, this stock has surged 121% over the past year. We feel that the company's strengths justify its premium valuation. Bear in mind, however, that the Machinery industry as a whole faces challenges from the recent surge in commodity prices.

Partner Communications (PTNR Quote) operates a mobile telecommunications network based on the Global System for Mobile Communications (GSM) Standard in Israel. The company markets its services by capitalizing on the international Orange brand, which is licensed to the company and has been used successfully in other markets to promote mobile telephone services.

Market surveys show that it has achieved strong brand awareness in Israel. In addition to standard and enhanced GSM services, the company also offers value-added services and products such as roaming, voice mail, voice messaging, color picture messaging, ringtone and game downloads, and information services.

Our buy rating for Partner Communications has not changed since September 2004. Our rating is based on the company's strong revenue and earnings growth, improved gross profit margin and attractive returns. For the fourth quarter of fiscal 2007, revenue grew 31% year over year to $471.7 million, propelled by strong revenue growth from the service and equipment businesses. This revenue growth led to improvements in the company's gross profit margin, which improved 126 basis points to 42.39%.

In addition, net income for the fourth quarter increased significantly to $85.4 million from $40.8 million a year ago. Moreover, the company's return on equity expanded 246 basis points to 56.77% year over year, while return on assets moved up 416 basis points to 18.68%. These positive factors are further strengthened by healthy cash levels. Cash and equivalents more than doubled year over year in the fourth quarter to $38.5 million.