Stock Picks: Top Five Mid-Caps for Aug. 7

Ameron has been rated a buy since June 2005. Strong performances from its fiberglass-composite-pipe group and TAMCO (Ameron's 50%-owned steel mini-mill) led to higher results in the second quarter of fiscal 2008. Ameron reported a year-over-year revenue increase of 1.9%, which appears to have helped boost earnings per share (EPS) from $1.63 in the second quarter of fiscal 2007 to $1.78 in the most recent quarter. Net income increased 3.4% when compared to the same quarter one year prior, rising from $15.8 million to $16.3 million. Return on equity also improved slightly, and the company appears to be successfully managing its debt levels.

Management overall was pleased with the year-to-date results, as the company's performance for the first half of fiscal 2008 was positive. The company anticipates steady returns for the year from its various businesses, with TAMCO and the fiberglass-composite-pipe group expected to continue performing at record levels. However, weak market conditions most likely will continue to negatively affect its infrastructure products group. Bear in mind that the building products industry's performance is cyclical, depending on the overall health of the U.S. economy. The state of the housing and auto markets in particular could impact this industry and, therefore, this stock.

Amphenol (APH Quote) designs, manufactures and markets electrical, electronic and fiber-optic connectors, interconnect systems and coaxial and flat-ribbon cable. Its connectors and interconnect systems are used primarily to conduct electrical and optical signals for a range of sophisticated electronic applications. The company has facilities for manufacturing and assembling its products in the Americas, Europe, Africa and Asia.