Lance, Strayer, Lincoln: Fast-Growth Stocks

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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 Quote) makes snack foods, including Cape Cod Potato Chips and Archway Cookies.

The numbers: Second-quarter net income surged 252% to $9.5 million and 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 12% this year, matching the Dow Jones Industrial Average, but trailing the S&P 500 Index. 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.

Medco Health Solutions(MHS Quote) is one of the largest pharmacy-benefit managers in the U.S.

The numbers: Second-quarter net income rose 19% to $312 million and earnings per share jumped 26% to 64 cents, boosted by a lower share count. Revenue increased 17% to $15 billion. Its gross margin was little changed at 7% and its operating margin remained steady at 4%. Medco has less-than-ideal liquidity, reflected in its quick ratio of 0.9. A debt-to-equity ratio of 0.8 indicates reasonable leverage.

The stock: Medco has advanced 31% this year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 23, a premium to the market and health care peers. The company doesn't pay dividends.