Financial Advisor Update

Top Five: Quality Systems, Treehouse Foods

Stock quotes in this article: STRA , TEVA , NPK , QSII , THS  

TheStreet.com 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.

BOSTON (TheStreet) -- The following companies are projected to increase revenue and profit by at least 12% in the coming year. They receive "buy" ratings from our 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: Second-quarter revenue increased 29% to $126 million as net income climbed 29% to $28 million and earnings per share jumped 33% to $2. The operating margin climbed from 34% to 36% and the net margin remained steady at 22%. Strayer has no debt or interest expenses. And a quick ratio of 1.6 indicates ample liquidity.

The stock: Strayer is up 1% in 2009, underperforming the Dow Jones Industrial Average and S&P 500 Index. The stock trades at an expensive price-to-earnings ratio of 35 and offers a dividend yield below 1%.

Teva Pharmaceuticals(TEVA Quote) is an Israeli company that develops and markets a range of generic and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients.

The numbers: Second-quarter revenue ascended 20% to $3.4 billion as net income dropped 2% to $521 million and earnings per share fell 11% to 58 cents, hurt by a higher share count. The operating margin improved from 23% to 24% and the net margin dropped from 19% to 15%. A quick ratio of 0.9 indicates a less-than-ideal liquidity position. And a debt-to-equity ratio of 0.4 reflects a modest debt load.

The stock: Teva is up 24% in 2009, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 55, indicating a significant premium to the market, and offers a modest 1.2% dividend yield.

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