Lance, Strayer: Top 5 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) -- These 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. Lance's 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 20% this year, beating the Dow Jones Industrial Average, but trailing the S&P 500 Index. The stock trades at a price-to-earnings ratio of 29, a premium to the market and packaged food peers. Shares pay a 2.3% dividend yield.

Strayer Education(STRA Quote) runs various for-profit academic programs.

The numbers: Second-quarter net income increased 29% to $28 million and earnings per share climbed 33% to $1.50. Revenue grew 29% to $126 million. Strayer's gross margin rose from 69% to 70% and its operating margin ascended from 34% to 35%. The company has an ideal financial position, with $90 million of cash and no debt.

The stock: Strayer is up 4% this year, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 34, a premium to the market and education service peers. Shares pay a 0.9% dividend yield.