Top Five Mid-Cap Stocks

Bucyrus BUCY designs, manufactures and markets high-productivity equipment for use in surface and underground 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. Revenue more than doubled for the first quarter of fiscal 2008. Net income also grew, rising 130% year over year to $41.1 million. The company also reported significant EPS improvement to $1.09 a share from 57 cents a share a year ago. High international commodity prices and strong markets for commodities mined by Bucyrus' machines helped drive global demand for the company's products in the second quarter, leading to an overall increase in surface mining sales. Bucyrus also appears to be relatively successful in managing its debt, based on the company's most recent debt-to-equity ratio of 0.62.

Powered by factors such as its strong earnings growth of 91%, Bucyrus' stock price has surged 98% over the past year. We feel that the company's strengths outweigh the fact that it is now trading at a premium valuation to its peers. Bear in mind, however, that the machinery industry as a whole faces challenges from the recent surge in commodity prices.