Top 5 Stocks: Medco, Enterprise Products

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

The following large-cap companies have market values of more than $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.

McDonald's(MCD Quote) franchises and operates restaurants worldwide, offering food, soft drinks, coffee and other beverages.

The numbers: First-quarter revenue declined 10% to $5.1 billion, but net income increased marginally to $980 million and earnings per share jumped 7% to 87 cents as the net margin remained strong at 20%. A 32% decline in the cash balance to $2 billion is a weakness. But a quick ratio of 1.3 and a debt-to-equity ratio of 0.8 indicate a conservative financial position.

The stock: McDonald's has declined 7% in 2009, underperforming the Dow Jones Industrial Average and S&P 500 The stock trades at a price-to-earnings ratio of 15 and offers an attractive dividend yield of 3.4%.

Oracle(ORCL Quote) develops and sells database, middleware and application software worldwide.

The numbers: Fiscal fourth-quarter revenue declined 5% to $6.9 billion as net income fell 7% to $1.9 billion. But earnings per share decreased just 3%, helped by a lower share count. The operating margin improved to 43% as the net margin dropped to 28%. The company holds $13 billion of cash reserves, amounting to a quick ratio of 1.9. And its debt-to-equity ratio is conservative at 0.4.

The stock: Oracle has increased 21% in 2009, in line with the Nasdaq. The stock trades at a price-to-earnings ratio of 19 and doesn't consistently pay dividends.