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BOSTON ( TheStreet) -- These companies have annual revenue above $500 million, below-average valuations, debt that's less than 49% of total capital and "buy" ratings from our quantitative model, which considers more than 60 factors. They're ordered by their potential to appreciate, starting with the company with the best growth prospects.
The numbers: Fiscal third-quarter net income increased 25% to $6.3 million, or 47 cents a share, as revenue increased 7% to $293 million. Sales at stores open at least a year, a key retail gauge, jumped 7%. Its gross margin decreased from 28% to 27%, but its operating margin rose from 3% to 4%. The company has a modest $36 million debt load and more than $47 million of cash, translating to a quick ratio of 0.8 and a debt-to-equity ratio of 0.2.The stock: Village Super Market is up 2% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 17, a discount to food retailers and the market. The shares offer a 3% dividend yield. Church & Dwight (CHD - Get Report) sells household products, including Arm & Hammer baking soda and Brillo pads. The numbers: Second-quarter net income increased 27% to $58 million, or 88 cents a share. Revenue jumped 5% to $623 million. Its gross margin rose from 44% to 49% and its operating margin expanded from 14% to 18%. A quick ratio of 1.2 demonstrates ample liquidity and a debt-to-equity ratio of 0.5 indicates conservative leverage. The stock: Church & Dwight is up 1% this year, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 19, a premium to household-product makers, but a discount to the market. The shares offer a 1% dividend yield.