Five Growth Stocks Rated Highly

Teva Pharmaceuticals, Lincoln Educational Services, Medco Health Solutions, Neogen and Bio-Reference Laboratories are rated 'buy.'
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BOSTON (TheStreet) -- The following companies are projected to increase revenue and profit by at least 12% in the coming year. TheStreet.com's quantitative equity model rates the fast-growth companies "buy."

5. 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 Jones Industrial Average

and

S&P 500 Index

. The stock trades at a price-to-earnings ratio of 61, a premium to pharmaceutical peers. The shares offer a 0.8% dividend yield.

4. Lincoln Educational Services

(LINC) - Get Report

provides career education.

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 increased from 10% to 16%. The company has a liquid balance sheet, with $38 million of cash and $37 million of debt.

The stock

: Lincoln soared 47% during the past year, outpacing the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 14, a discount to education peers. Lincoln doesn't pay dividends.

3. Medco Health Solutions

(MHS)

is a pharmacy-benefits manager.

The numbers

: Third-quarter net income increased 13% to $336 million, and earnings per share climbed 19% to 69 cents. Revenue rose 18% to $15 billion. Medco's operating margin was unchanged at 4%. A quick ratio of 1 reflects adequate liquidity. A debt-to-equity ratio of 0.7 indicates reasonable leverage.

The stock

: Medco advanced 46% during the past year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 25, a premium to health-care-service peers. Medco doesn't pay dividends.

2. 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. Revenue advanced 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 3% during the past year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 34, a premium to health-care-supply peers. Neogen doesn't pay dividends.

1. 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 rose 34% to 51 cents. Revenue advanced 26% to $102 million. Bio-Reference's operating margin ascended from 12% to 13%. The company has a stable financial position, evident in its quick ratio of 1.9 and its debt-to-equity ratio of 0.2.

The stock

: Bio-Reference Laboratories increased 65% 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-service peers. Bio-Reference doesn't pay dividends.

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