Top 5 Fast-Growth Stocks: Quality Systems

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The following fast-growth companies are projected by analysts to increase revenue and profit by at least 12% in the coming year and receive "buy" ratings from TheStreet.com Ratings' proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate.

Strayer Education(STRA Quote) is a for-profit post-secondary education company that offers a variety of academic programs through Strayer University.

The numbers: Fiscal first-quarter revenue increased 28% to $125 million as net income jumped 24% to $29 million and earnings per share improved 26% to $2.07. Operating margin improved 162 basis points to 38% as net margin fell 89 basis points to 23%. Strayer has no debt and a quick ratio of 1.5, indicating an ideal financial position.

The stock: Strayer has fallen 5% in 2009, outperforming the Dow Jones Industrial Average and underperforming the S&P 500. The stock is trading at a price-to-earnings ratio of 33. A 1% dividend yield sweetens the stock, but is below the S&P 500 average.

National Presto Industries(NPK Quote) makes small appliances, and defense and absorbent products.

The numbers: Fiscal first-quarter revenue increased 40% to $108 million as net income and earnings per share ascended 74% to $11 million and $1.58, respectively. Operating margin improved 307 basis points to 14% and net margin climbed 195 basis points to 10%. The company has no debt or interest expenses and abundant cash reserves, as reflected by a quick ratio of 3.6.

The stock: National Presto is down 2% in 2009, outperforming the Dow and the S&P 500. The stock trades at a price-to-earnings ratio under 11 and offers a meager 1.3% dividend yield.