Top Five Mid-Cap Stocks: July 17

Management was pleased with the first-quarter results and is excited about Energen's future outlook. The company has capitalized on the recent upward momentum of oil and gas market prices by strengthening its hedge position for 2009 and 2010 production in order to help lock in earnings and cash flow growth.

Additionally, management announced its new earnings guidance for fiscal 2008, with earnings per diluted share now estimated to be in the range of $4.15 to $4.55 due to the current market strength of commodity prices. However, any significant decline in natural gas and oil prices along with any unfavorable regulatory movements could negatively affect the company's business and future profitability.

Strayer Education(STRA Quote) is a for-profit post-secondary education services corporation. The company's mission is to make high-quality, post-secondary education achievable and convenient for working adults in today's economy. Strayer offers a variety of academic programs through wholly-owned Strayer University. Programs are offered in both a classroom setting and through Strayer University Online.

The university was founded in 1892, and today it offers undergraduate and graduate degree programs in business administration, accounting, information technology, education and public administration at 57 physical campuses in Pennsylvania, Delaware, Maryland, Washington, D.C., Virginia, North Carolina, South Carolina, Georgia, Tennessee and Florida. The Strayer University Online program provides a flexible and convenient option for working adults worldwide to take college courses.

Our buy rating for Strayer has not changed since March 2003, and it is based on a variety of strengths that include the company's revenue and net income growth and its largely solid financial position. For the first quarter of fiscal 2008, Strayer's revenue rose 21.1% year over year because of increased enrollment and a 5% tuition increase that went into effect in January 2008. As a result, earnings per share improved 26.1%, while net income increased 25.1% from $18.81 million in the first quarter of fiscal 2007 to $23.52 million. Another favorable sign for the company is that it is debt free, resulting in a debt-to-equity ratio of zero.