Top Five Large-Cap Stocks: July 16

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, large-cap stocks are in the spotlight. These are stocks of companies with market capitalizations of over $10 billion that rank near the top of all stocks rated by our proprietary quantitative model, which looks at more than 62 factors. In addition, the stocks must be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. The stocks 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.

Questar(STR Quote) is a natural-gas-focused energy company. The company has four major lines of business: gas and oil exploration and production, midstream field services, interstate gas transportation and retail gas distribution. These businesses are conducted through three main subsidiaries: Questar Market Resources, Questar Pipeline Company and Questar Gas Company. The company operates in the Rocky Mountain and mid-continent regions of the U.S. These regions include parts of Wyoming, Utah, Colorado, Oklahoma, Texas and Louisiana.

We have rated Questar a buy since October 2002. Strengths such as revenue growth and improvement in earnings have contributed to this rating. For the first quarter of fiscal 2008, Questar reported a 23% surge in net earnings, boosted by higher natural gas and oil production. Increased prices also contributed to the rise. Net income rose to $185.8 million, or $1.05 per share, from $151.1 million, or 86 cents a share, in the first quarter of fiscal 2007. Total revenue grew 20% to $1.05 billion, compared with $872.1 million a year ago.

Additionally, Questar Exploration and Production Company, a subsidiary of Questar Market Resources, completed the purchase of two producing properties in northwest Louisiana during the first quarter.