Top 5 Mid-Cap Stocks for June 18

Each business day, TheStreet.com Ratings 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 -- and publishes these lists in the Ratings section of our Web site.

This list is based on data from the close of the previous trading session. Today we focus on mid-caps. These are stocks of companies that have market capitalizations of $500 million to $10 billion that 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.

Quality Systems(QSII Quote) develops and markets healthcare information systems that automate medical and dental practices, networks of practices such as physician hospital organizations, ambulatory care centers, community health centers and medical and dental schools. We have rated Quality Systems a buy since November 2001 due to its efficiency, solvency and growth in revenue and net income. Solid stock price performance also supports this rating.

For the fourth quarter of fiscal 2009, the company reported that its revenues rose 28.4% year over year, surpassing the industry average of 2.8% growth. Net income also increased in the fourth quarter, rising 1.3% from $11.25 million to $11.4 million. The company has reported somewhat volatile earnings recently, but we feel that it is poised for earnings-per-share growth in the coming year.