Top 5 Fast-Growth Stocks for June 29

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, fast-growth stocks are in the spotlight. These companies are projected to increase revenue and profit by at least 12% in the coming year and have received buy ratings from our proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate.

Teva Pharmaceuticals(TEVA Quote) is an Israel-based company that develops and markets a range of generic and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients. We have rated Teva buy since June 2007.

The company's fiscal first-quarter revenue increased 22% year over year to $3.14 billion as net income surged 225% to $451 million and EPS climbed 183% to 51 cents. Gross and operating margins declined 329 and 886 basis points to 55% and 18%, respectively, as net margin increased 893 basis points to 14%. Return on assets shed 419 basis points to 2.9%, and return on equity fell 631 basis points to 5.8%. The company has conservative leverage, as reflected by a debt-to-equity ratio of 0.52. But a quick ratio of 0.76 indicates a less-than-ideal liquidity position.

Shares of Teva Pharmaceuticals are flat so far in 2009, outperforming the Dow Jones Industrial Average and underperforming the S&P 500. The stock trades at a price-to-earnings ratio of about 46, indicating a significant premium to the market, and it offers a modest 1.25% dividend yield.

Quality Systems(QSII Quote) engages in the development and marketing of health care information systems in the United States. We have rated Quality Systems buy since June 2007.