Top 5 Fast-Growth Stocks for Dec. 29

Each business day, TheStreet.com Ratings compiles a list of the top five stocks in five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- based on data from the close of the previous trading session. Today, fast-growth stocks are in the spotlight. These are stocks of companies that are projected to increase revenue and profit by at least 12% in the coming year and rank near the top all stocks rated by our proprietary quantitative model, which looks at over 60 factors.

In addition, the stocks must be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. Please note that definitions of revenue vary by industry, and this screen does not make adjustments for acquisitions, which can materially affect posted results. Likewise, earnings-per-share growth may be affected by accounting charges, share repurchases and other one-time items.

Note that no provision is made for off-balance-sheet assets such as unrealized appreciation/depreciation of investments, market value of real estate or contingent liabilities that might affect book value. This could be material for some companies with large underfunded pension plans.

DeVry (DV Quote) is an international higher education company that operates DeVry University, Ross University, Chamberlin College of Nursing, and Becker Professional Review. DeVry University offers career-oriented undergraduate and graduate programs in technology, business, and management. Classes are offered at a number of locations, as well as through DeVry University Online. Ross University is one of the largest medical and veterinary schools in the world. The basic curriculum is taught at campuses in Dominica and St. Kitts/Nevis, while clinical rotations are carried out at teaching hospitals and veterinary schools throughout the United States. Chamberlin College of Nursing, previously known as Deaconess College of Nursing is a national nursing school, while Becker Professional Review provides professional education to clients in accounting and finance-related professions.

The company has been rated a buy since January 2007. DeVry's strengths can be seen in a variety of areas, such as its impressive record of earnings-per-share (EPS) growth, good cash flow from operations, robust revenue growth, and largely solid financial position. The company reported revenue growth of 21.3% year-over-year in the first quarter of fiscal 2009. This growth outpaced the industry average of 12.7%, and it also appears to have helped boost EPS, which improved 29.7% when compared to the same quarter last year. Net operating cash flow increased 21.0% to $96.82 million in the first quarter. DeVry has a very low debt-to-equity ratio of 0.21, which implies that the company has been very successful at managing its debt levels. During September 2008, DeVry completed the acquisition of U.S. Education, the parent company of Apollo College and Western Career College, which operates 17 campus locations in the western United States.

Management stated that DeVry's strong first quarter results were driven by a strategic plan to increase enrollment through improved marketing and recruiting. The acquisition of U.S. Education also helps this strategic plan by allowing DeVry to further diversify its educational offerings. The company is confident that it should be able to continue maximizing shareholder value and achieving long-term growth goals despite a tough economy due to its diversified portfolio. It is important to remember that a quick ratio of 0.69 indicates a potential problem in covering short-term cash needs. In addition, the company shows low profit margins. All the same, we feel that the strengths detailed above are enough to outweigh any potential weaknesses at this time.