Top 5 Mid-Cap Stocks for June 25

TSC Ratings TheStreet.com Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety first" approach aims to reduce risk while achieving performance on a total return basis.

Each business day, we compile a list of the top five stocks in one of five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap.

Today, mid-cap stocks are in the spotlight. These companies have market capitalizations of $500 million to $10 billion and receive buy ratings from our proprietary quantitative model, which considers more than 60 factors. The stocks are ordered by their potential to appreciate.

Landauer(LDR Quote) offers personnel radiation monitoring to measure the dosage of x-rays, gamma radiation and other penetrating ionizing radiation to which a person has been exposed. We have rated Landauer buy since November 2001.

The company's second fiscal quarter revenue increased 5% year over year to $25 million, outpacing the industry average growth rate of 2%. Net income fell 16% to $5 million, and net operating cash flow increased 111% to $14 million. Gross margin is currently high at 72% but has declined 397 basis points since the year-ago quarter. The company has no debt obligations or interest expenses, and a quick ratio of 1.86 indicates ample liquidity.

Shares of Landauer have fallen 17% in 2009, underperforming the Dow and S&P 500. But at its current share price, the stock offers a 3.44% dividend yield, which is higher than the S&P 500 average of 3.1%. The stock trades at a price-to-earnings ratio of 24, indicating a premium to the overall market.

Quality Systems(QSII Quote) develops and markets health care information systems that automate medical and dental practices and networks of practices. We have rated Quality Systems buy since November 2001.