Top 5 Stocks: Dollar Tree, General Mills

The stock: Advance Auto Parts has climbed 40% this year, outpacing major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 18 and offers a dividend yield below 1%.

Village Super Market(VLGEA Quote) operates the ShopRite chain of supermarkets.

The numbers: Fiscal third-quarter revenue increased 7% to $293 million. Earnings increased 25% to $6.3 million, or 47 cents. Same-store sales, which compare locations open at least a year, jumped more than 7%. The company has a modest $36 million in debt and over $47 million of cash, which works out to a quick ratio of 0.8 and a debt-to-equity ratio of 0.2.

The stock: Village Super Market has climbed 2% this year, underperforming major U.S indices. The stock trades at a fair price-to-earnings ratio of 17 and offers a 2.9% dividend yield.

Dollar Tree(DLTR Quote) operates discount variety stores.

The numbers: First-quarter revenue increased 7% to $1.2 billion. Earnings jumped 39% to $60 million, or 66 cents. The operating margin expanded from 7% to 8% and the net margin inched up to 5%. A quick ratio of 0.9 indicates a less-than-ideal liquidity position. But a debt-to-equity ratio of 0.2 reflects modest leverage.

The stock: Dollar Tree is up 10% in 2009, beating the Dow, but underperforming the S&P 500. The stock trades at a fair price-to-earnings ratio of 17, but doesn't pay dividends.

General Mills(GIS Quote) makes cereal, snacks and other packaged foods.

The numbers: Fiscal fourth-quarter revenue increased 5% to $3.6 billion. Earnings doubled to $358 million, or $1.07. The operating margin climbed from 9% to 20% and the net margin jumped from 5% to 10%. General Mills has a weak liquidity position, reflected by a quick ratio of 0.5, but has added $99 million of cash since the year-earlier quarter. A debt-to-equity ratio of 1.4 indicates high leverage.