Top 5 Fast-Growth Stocks for Jan. 5

Management reported that sales growth in both the Health Sciences and Chemicals & Colorants segments (up 21.3% and 19.2% year over year, respectively) more than offset a 23.2% decrease in Crop Protection sales. The strength in the Health Sciences segment was attributed mainly to increased sales from foreign operations - particularly in Europe - and to increases in domestic generic and nutritional products. Sales growth in Chemicals & Colorants experienced good growth in pigments, dyes, and miscellaneous intermediates, as well as a boost from foreign operations, according to management. One weakness in the company's results was relatively weak operating cash flow generation. However, with a very clean balance sheet and positive working capital, we feel the positives far outweigh any negatives for the company at this time.

NCI(NCIT Quote) is a provider of information technology (IT) services and solutions to U.S. federal government agencies. NCI has been rated a buy since February 2008 based on its healthy growth in revenue and net income, solid stock price performance, impressive record of EPS growth, and return on equity.

For the third quarter of fiscal 2008, the company reported revenue growth of 18.7% year over year. This growth represents record revenue results for the company, and appears to have trickled down to NCI's bottom line, improving EPS by 28%. EPS increased from 25 cents in the third quarter of fiscal 2007 to 32 cents in the most recent quarter. Net income also increased, rising 31.6% from $3.3 million to $4.4 million. Return on equity improved slightly from 16.18% to 16.6%. NCI's strong earnings growth has helped the stock price climb higher over the past year.