Five Mid-Cap Stocks Ready to Break Out
BOSTON (TheStreet) -- Mid-cap stocks, lodged between bellwether blue-chips and fast-growth small companies, often go unnoticed. The following medium-sized companies are determined to garner attention in 2010 by beating their small- and large-cap peers.
5. Check Point Software Technologies
(CHKP) - Get Check Point Software Technologies Ltd. Report
designs Internet security programs.
The numbers
: Fourth-quarter profit rose 27% to $110 million, or 51 cents a share, as revenue increased 25% to $272 million. Check Point's operating margin remained steady at 48%. The company holds $884 million of cash and no debt, indicating fiscal prudence.
The stock
: Check Point returned 40% 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 19, a discount to software peers. Check Point doesn't pay dividends.
4. Bio-Reference Laboratories
(BRLI)
provides clinical-testing services in the New York metropolitan area.
The numbers
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: 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%. Its quick ratio of 1.9 and debt-to-equity ratio of 0.2 reflect a strong financial position.
The stock
: Bio-Reference Laboratories increased 52% during the past year, 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.
3. Edwards Lifesciences
(EW) - Get Edwards Lifesciences Corporation Report
sells cardiovascular devices. The company is scheduled to report fourth-quarter results today.
The numbers
: Third-quarter profit more than doubled to $74 million, or $1.25 a share, as revenue grew 7% to $326 million. The company's operating margin widened from 15% to 17%. Edwards has a liquid balance sheet, with $290 million of cash and $102 million of debt.
The stock
: Edwards Lifesciences increased 62% during the past year, more than major U.S. indices. The stock trades at a price-to-earnings ratio of 25, a discount to health care equipment peers. Edwards doesn't pay dividends.
2. DeVry
(LINC) - Get Lincoln Educational Services Corporation Report
is a for-profit educator.
The numbers
: Fiscal second-quarter profit soared 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 has a liquid balance sheet, with $389 million of cash and $45 million of debt.
The stock
: DeVry advanced 6.6% during 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. Church & Dwight
(CHD) - Get Church & Dwight Co., Inc. Report
sells household products. The company is scheduled to report fourth-quarter results on Tuesday.
The numbers
: Third-quarter profit soared 43% to $70 million, or 98 cents a share, as revenue inched up 2% to $646 million. Church & Dwight's operating margin ascended from 15% to 18%. A quick ratio of 1.1 indicates adequate liquidity. A debt-to-equity ratio of 0.5 reflects conservative leverage.
The stock
: Church & Dwight rose 14% during the past year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 19, a premium to household products peers. The shares offer a 0.9% dividend yield.
