Lance, Teva, NCI: Fast-Growth Stocks

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 and receive "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.

Lance (LNCE) makes snack foods, including Cape Cod Potato Chips and Archway Cookies.

The numbers: Second-quarter net income surged 252% to $9.5 million as earnings per share grew 233% to 30 cents, restrained by a higher share count. Revenue grew 11% to $237 million. Its gross margin jumped from 41% to 44% and its operating margin rose from 3% to 7%. A quick ratio of 1.1 indicates adequate liquidity. A debt-to-equity ratio of 0.4 demonstrates conservative leverage.

The stock: Lance has advanced 10% in 2009, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 27, a premium to the market and packaged food peers. Shares pay a 2.5% dividend yield.

Teva Pharmaceuticals (TEVA) is an Israeli pharmaceutical company.

The numbers: Second-quarter net income dropped 2% to $521 million and earnings per share fell 11% to 58 cents, hurt by a higher share count. Revenue ascended 20% to $3.4 billion. Its gross margin dropped from 58% to 54%, but its operating margin increased from 23% to 24%. A quick ratio of 0.9 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.4 reflects conservative leverage.

The stock: Teva is up 20% this year, beating the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 53, a premium to the market and pharmaceutical peers. Shares pay a 1.2% dividend yield.

1 2 3 Next › Last »