Five Mid-Cap Stocks Ready to Run

1. Balchem(BCPC) sells specialty chemicals.

The numbers: Third-quarter net income increased 43% to $6.9 million and earnings per share climbed 44% to 36 cents. Revenue dropped 7% to $54 million. Balchem's gross margin rose from 25% to 30%, and its operating margin ascended from 12% to 19%. The company has an admirable financial position, with $39 million of cash and $6.6 million of debt.

The stock: Balchem has risen 30% this year, more than the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 25, a premium to the market, but a discount to specialty chemical peers. The shares pay a 0.3% dividend yield.

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