Top Five Mid-Cap Stocks for Oct. 9

Management was pleased to announce that its team's efforts resulted in fiscal 2008's sales and earnings results being the best in the company's 120-year history. The company intends to grow its business while maintaining a focus on quality in 2009.

Additionally, Perrigo announced on Oct. 6 that it had acquired the Mexican company Laboratorios Diba, which manufactures store-brand over-the-counter and prescription pharmaceuticals. According to management, the acquisition could add nearly $15 million in annual sales and allow Perrigo to expand the number of formulas and trademarks that it markets in Mexico. While Perrigo may harbor some minor weaknesses, we do not see these as having any significant impact on its future financial results.

The Buckle(BKE Quote) markets casual apparel such as denim, sportswear, outerwear, accessories and footwear under the brand names Buckle and The Buckle and operates more than 370 retail stores targeted at young men and women in the U.S. The Buckle has been rated a buy since May 2003, primarily because of its solid financial position and growth in revenue, net income and EPS.

In the second quarter of fiscal 2008, the company's revenue rose 36.6% year over year. The company improved its EPS from 38 cents per share to 78 cents per share over the same period. Net income also increased by 88.9%, rising from $11.79 million in the second quarter of fiscal 2007 to $22.28 million in the most recent quarter. The Buckle reported a gross profit margin of 44.50%, which also increased from the same quarter one year prior.

Additionally, the company is clearly able to cover its short-term cash needs, as it has no debt to speak of, as indicated by a quick ratio of 2.50 and a debt-to-equity ratio of zero. Finally, on Sept. 16 the company announced that at its quarterly meeting, the board of directors authorized a special one-time cash dividend of $3 per share, along with a 30-cent-per-share quarterly dividend. A 3-for-2 stock split was also authorized at that time.