Top Five Mid-Cap Stocks for Oct. 9

Church & Dwight(CHD Quote) develops, manufactures and markets household, personal care and specialty products under well-recognized brand names such as Arm & Hammer, Brillo, Kaboom, OxiClean and Trojan. We have rated Church & Dwight a buy since November 2001, supported by the company's impressive revenue growth, healthy liquidity position, increased net income and key strategic initiatives. The company's strengths also include its higher returns, improved leverage levels and favorable business outlook.

For the second quarter of fiscal 2008, Church & Dwight reported revenue growth of 8.7% year over year, led by organic growth and favorable currency exchange. Net income rose from $40.53 million in the second quarter of fiscal 2007 to $45.77 million in the most recent period, while EPS improved from 59 cents to 66 cents over the same period. The company's equity increased 23.3% to $1.20 million, while its debt dropped 15.4% to $7.4 billion. Returns on assets and equity improved 102 and 21 basis points, respectively.

Church & Dwight recently acquired Coty's over-the-counter business Del Pharmaceuticals. In addition, the company plans to set up its laundry plant and distribution center in Pennsylvania. Looking forward to full-year fiscal 2008, the company raised its EPS guidance to a range of $2.83 to $2.85 and forecast organic revenue growth beyond 3% to 4%.

Bear in mind, however, that failure to achieve revenue from new products and increased prices may pose a threat to Church & Dwight's future financial performance. In addition, a decrease in demand for the company's products due to the slowdown in the U.S. economy could negatively impact revenue growth.