Top Five Mid-Cap Stocks: July 2 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 between $500 million and $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 - Get Report) 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 as net income and earnings per share fell 16% to $5 million and 58 cents, respectively. Gross, operating and net margin declined 397, 14 and 532 basis points to 72%, 42% and 22%, respectively. Return on assets improved 25 basis points to 19% and return on equity increased 187 basis points to 33%. The company has no debt or interest expenses and a quick ratio of 1.86 indicates ample liquidity. Shares of Landauer have fallen 15% in 2009, underperforming the Dow Jones Industrial Average and the S&P 500. But at its current share price, the stock offers a 3.36% dividend yield, which is higher than the S&P 500 average of 3.14%. The stock trades at a price-to-earnings ratio around 25. Strayer Education (STRA - Get Report) is a for-profit post-secondary education company that offers a variety of academic programs through Strayer University. We have rated Strayer buy since March 2003.