Top 5 All-Around-Value Stocks for Feb. 3

Each business day, TheStreet.com Ratings TheStreet.com Ratings compiles a list of the top five stocks in one of 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, all-around-value stocks are in the spotlight.

These are stocks of companies that meet a number of criteria, including annual revenue of more than $500 million, lower-than-average valuations such as a price-to-sales ratio of less than 2, and leverage that is less than 49% of total capital.

In addition, they must rank near the top of all stocks rated by our proprietary quantitative model, which looks at more than 60 factors. The stocks must also be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. They are ordered by their potential to appreciate.

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.

NTT DoCoMo(DCM Quote) provides wireless telecommunications services in Japan. We have rated it a buy since February 2008. This rating is supported by a variety of strengths, such as the company's solid stock price performance, impressive record of earnings-per-share growth, and largely solid financial position.

The company reported in October that its earnings surged 40% year over year in the second quarter of fiscal 2008 due to lower costs as a result of a reduction in handset incentives. EPS improved 44.4% from 27 cents a year ago to 39 cents, continuing a trend of positive EPS growth over the past year. Return on equity exceeded that of the prior year's quarter, rising from 9.3% to 14.4%. This is a clear sign of strength within the company. In addition, the company's very low debt-to-equity ratio of 0.1 is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, a quick ratio of 1.3 indicates that NTT DoCoMo has the ability to avoid short-term cash problems. Bear in mind, however, that the company reported its third quarter earnings on Jan. 30, so our rating is subject to change once these numbers are finalized within our model.