Top Five Mid-Cap Stocks

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 we focus on mid-caps. 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.

Valmont Industries VMI is a global manufacturer that designs and manufactures poles, towers, and structures for the lighting, traffic, utility and communications industries. The company also makes mechanized irrigation systems and water management equipment for agricultural use, provides protective coating services for infrastructure and produces fabricated products for commercial and industrial applications. Headquartered in Omaha, Neb., Valmont currently operates in 43 facilities located in 14 countries.

We have rated Valmont a buy since April 2005, based on the company's robust revenue growth, largely solid financial position and compelling improvement in net income. For the first quarter of fiscal 2008, the company's revenue rose 24% year over year. This growth appears to have helped boost earnings per share, which improved to 11 cents from 10 cents in the first quarter of fiscal 2007. Net income increased 59% year over year to $29.7 million. Overall, the company reported record first-quarter sales, operating income and net earnings, driven by strong global demand for Valmont's infrastructure and agriculture products. Finally, the company's current debt-to-equity ratio of 0.53 is relatively low, implying successful management of debt levels.