Five Fast-Growth Companies Rated 'Buy' - TheStreet

BOSTON (TheStreet) -- The following five companies are expected by analysts to increase revenue and profit by at least 12% in the coming year. TheStreet.com's stock-model recommends purchasing their shares.

5. Lincoln

(LINC) - Get Report

provides career education. The company is scheduled to report fourth-quarter results March 3.

The numbers

: Third-quarter profit more than doubled to $14 million, or 50 cents a share, as revenue grew 48% to $148 million. Lincoln's operating margin stretched from 10% to 16%. The company has an admirable financial position, with $38 million of cash and $37 million of debt.

The stock

: Lincoln increased 29% during the past year, more than the

Dow Jones Industrial Average

and

S&P 500 Index

. The stock trades at a price-to-earnings ratio of 13, a discount to diversified consumer-services peers. Lincoln doesn't pay dividends.

4. Strayer

(STRA) - Get Report

is an online and classroom educator.

The numbers

: Fourth-quarter profit increased 32% to $32 million, or $2.32 a share, as revenue climbed 29% to $147 million. Strayer's operating margin inched up from 35% to 36%. The company boasts a liquid balance sheet, with $117 million of cash and no debt.

The stock

: Strayer advanced 8.7% during the past year, lagging major U.S. indices. The stock trades at a price-to-earnings ratio of 27, a premium to diversified consumer-services peers. The shares offer a 1.5% dividend yield.

3. Medco Health Solutions

(MHS)

is a pharmacy-benefits manager. Medco is scheduled to report fourth-quarter results Feb. 23.

The numbers

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

The stock

: Medco advanced 31% during the past year, beating the Dow and S&P 500 Index. The stock trades at a price-to-earnings ratio of 26, a premium to health-care-services peers. Medco doesn't pay dividends.

2. Bio-Reference Laboratories

(BRLI)

provides clinical-testing services in the New York metropolitan area.

The numbers

: Fiscal fourth-quarter profit increased 37% to $7.2 million, or 51 cents a share, as revenue advanced 26% to $102 million. Bio-Reference's operating margin ascended from 12% to 13%. The company is fiscally sound, evident in its quick ratio of 1.9 and debt-to-equity ratio of 0.2.

The stock

: Bio-Reference increased 58% during the past year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 25, a premium to health-care-services peers. Bio-Reference doesn't pay dividends.

1. DeVry

(DV)

is a for-profit educator.

The numbers

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

The stock

: DeVry advanced 7.6% during the past year, trailing U.S. benchmarks. The stock trades at a price-to-earnings ratio of 20, a discount to diversified consumer-services peers. The shares offer a 0.3% dividend yield.

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