Top Five Mid-Cap Stocks

Harsco HSC is a diversified, multinational provider of industrial services and engineered products. The company works with a variety of industries, including steel, construction, railways and energy. Harsco operates in three business segments: Mill Services, Access Services, and Minerals and Rail Services and Products. The company has locations in 45 countries, including the U.S.

Harsco has been rated a buy since March 2003, based on various company strengths, such as its growth in revenue and net income and its largely solid financial position. Revenue rose 18% year over year for the first quarter of fiscal 2008. Earnings per share appear to have been boosted by this revenue growth, improving 24% in the same period. Net income increased 20% to $57 million. The company's current debt-to-equity ratio of 0.71 implies successful management of debt levels.

Management was pleased with what it considered a strong start to fiscal 2008 and remains confident in its outlook. With almost 70% of the company's revenues generated outside the U.S., the company feels that it has effectively limited its exposure to domestic economic conditions. Management raised its full-year 2008 guidance for EPS from continuing operations to a new range of $3.45 to $3.55 a share from the previous range of $3.40 to $3.50 a share. Although the company reported a disappointing return on equity, we feel that its strengths outweigh this weakness. While the stock's increase in price over the past year has made it relatively expensive compared to the rest of its industry, we feel that the company's strengths justify the higher price levels at this time.

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 impact the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company.