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

Management announced that it was encouraged by the number of new orders received during the first half of fiscal 2008, given current economic conditions. Bear in mind, however, that the machinery industry as a whole faces challenges from rising commodity costs. Customers have historically absorbed the commodity increases as surcharges that have helped cover the difference, but there is no guarantee that this will continue.

Although Gorman-Rupp's stock is currently trading at a premium valuation, 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.