Top Five Fast-Growth Stocks

We have rated XTO Energy a buy since November 2001. Its strengths include revenue growth, stock performance and an increase in net income. For the first quarter of fiscal 2008, the company reported that its net income rose 21% to $465 million, while revenue increased 43% year over year. This growth appears to have trickled down to the company's bottom line, as earnings per share improved to 92 cents from 82 cents a year ago. Finally, net operating cash flow increased 12% to $957 million.

Management feels that the first-quarter results reflect a strong start to fiscal 2008, which they hope will be another record year. While the stock's sharp appreciation over the last year means it trades at a premium to some of its peers, we feel the price levels are justified by other strengths. Bear in mind, however, that XTO operates in an industry that is highly volatile, and the cyclical nature of oil and gas prices could impact future results.

Flowserve (FLS - Cramer's Take - Stockpickr) develops, manufactures and sells precision-engineered flow equipments through 3 divisions: Flowserve Pump, Flow Control, and Flow Solutions. The company operates worldwide in more than 56 countries, with 43% of its revenues coming from North America.

We have rated Flowserve a buy since January 2007 based on several positive investment measures, such as increasing revenue and net income. Additionally, the company reported record results in various areas including earnings per share (EPS), sales, and bookings for the first quarter of fiscal 2008. Flowserve's revenues rose 24% year over year in the first quarter, largely due to strong sales in the oil and gas markets. The company also reported that fully diluted earnings per share improved to $1.53 from 59 cents a year ago. Furthermore, net income increased 162% to $88.1 million. Bookings were up 31% for the quarter.