Five Mid-Cap Stocks for 2010

BOSTON (TheStreet) -- The Russell Mid-Cap Index has outpaced the blue-chip benchmarks in 2009. Shares of these medium-sized companies are likely to outperform in the new year.

5. Sybase(SY) designs systems software.

The numbers: Third-quarter net income increased 20% to $39 million, or 43 cents a share, as revenue rose 3% to $293 million. Sybase's gross margin declined from 78% to 77%, but its operating margin climbed from 19% to 24%. The company has a liquid balance sheet, with $1.1 billion of cash and $751 million of debt.

The stock: Sybase has advanced 73% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 24, a premium to the market, but a discount to software peers. Sybase doesn't pay dividends.