Fast-Growth Stocks to Buy in Shaky Market

Medco Health Solutions, Neogen, Bio-Reference Laboratories, DeVry and Teva Pharmaceuticals are rated 'buy.'
Author:
Publish date:

BOSTON (TheStreet) -- In a turbulent stock market, the safest bets are on companies that can grow in any economy. The following top stocks are projected to increase revenue and profit by at least 12% in the coming year.

5. Medco Health Solutions

(MHS)

is a pharmacy benefit manager.

The numbers

: Third-quarter net income increased 13% to $336 million, and earnings per share climbed 19% to 69 cents. Revenue grew 18% to $15 billion. Medco's operating margin was unchanged at 4%. A quick ratio of 1 and debt-to-equity ratio of 0.7 indicate a sound financial position.

The stock

: Medco advanced 38% during the past year, beating the

Dow Jones Industrial Average

and

S&P 500 Index

. The stock trades at a price-to-earnings ratio of 25, a premium to health-care-service peers. Medco doesn't pay dividends.

4. Neogen

(NEOG) - Get Report

sells food-safety tests.

The numbers

: Fiscal second-quarter profit increased 18% to $4.6 million, or 20 cents a share, as revenue grew 13% to $35 million. Neogen's operating margin expanded from 19% to 21%. The company has an ideal financial position, with $32 million of cash and no debt.

The stock

: Neogen dropped 19% during the past year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 32, a premium to health-care-supply peers. Neogen doesn't pay dividends.

3. Bio-Reference Laboratories

(BRLI)

provides clinical testing services in the New York metropolitan area.

The numbers

: Fiscal fourth-quarter net income increased 37% to $7.2 million, and earnings per share advanced 34% to 51 cents. Revenue rose 26% to $102 million. Bio-Reference's operating margin ascended from 12% to 13%. Bio-Reference is financially sound, evident in its quick ratio of 1.9 and debt-to-equity ratio of 0.2.

The stock

: Bio-Reference Laboratories increased 54% in the past 12 months, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 24, a premium to health-care-service peers. Bio-Reference doesn't pay dividends.

2. DeVry

(LINC) - Get Report

is a for-profit educator.

The numbers

: Fiscal second-quarter profit increased 69% to $72 million, or $1 a share, as revenue rose 28% to $473 million. DeVry's operating margin widened from 17% to 23%. The company has a liquid balance sheet, with $389 million of cash and $45 million of debt.

The stock

: DeVry advanced 13% in the past year, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 21, on par with diversified-consumer-service peers. The shares offer a 0.3% dividend yield.

1. Teva Pharmaceuticals

(TEVA) - Get Report

is an Israeli drugmaker.

The numbers

: Third-quarter net income inched up 3% to $649 million, but earnings per share fell 6% to 72 cents. Revenue increased 25% to $3.6 billion. Teva's operating margin ascended from 23% to 24%. A quick ratio of 0.9 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.3 reflects modest leverage.

The stock

: Teva rose 37% during the past year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 61, a premium to pharmaceutical peers. The shares offer a 1.1% dividend yield.

Now See Five Value Stocks to Buy as Market Dips >>>