Each weekday, TheStreet.com Ratings compiles a list of the top five stocks in five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- and publishes these lists in the
Ratings section of our Web site .
This list, updated daily, is based on data from the close of the previous trading session. Today, fast-growth stocks are in the spotlight. These are stocks of companies that are projected to increase revenue and profit by at least 12% in the coming year and rank near the top all stocks rated by our proprietary quantitative model, which looks at over 62 factors.
In addition, the stocks must be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. Please note that definitions of revenue vary by industry, and this screen does not make adjustments for acquisitions, which can materially affect posted results. Likewise, earnings-per-share growth may be affected by accounting charges, share repurchases and other one-time items.
Note that no provision is made for off-balance-sheet assets such as unrealized appreciation/depreciation of investments, market value of real estate or contingent liabilities that might affect book value. This could be material for some companies with large underfunded pension plans.
Today leads off with
, which makes complex metal components and products for the aerospace and industrial gas turbine industries. It has been rated buy since June 2005.
The company has completed recent acquisitions to expand its casting, forging and fastener product offerings, and that should fuel revenue growth. Precision also shows net income increases resulting from margin expansion and higher income from continued operations (which were partially offset by higher interest expense and taxes).
Since Precision depends on the aerospace industry for its top-line growth, any slowdown in that industry could lead to reduced demand for its products. Any fluctuations in the prices of basic materials or any unseen difficulty in integrating recent acquisitions could also be concerns.
Rated a buy since May 2005,
manufactures and markets cranes and related products, food-service equipment and marine products. The company demonstrates notable revenue growth, significant EPS improvement, impressive stock price appreciation and net income growth that has significantly outpaced that of the
and its industry.
Its price level is now somewhat expensive compared with the rest of its industry, but given its strengths, the higher price is justified. Manitowoc's low profit margins are not a threat to its buy rating at this time.
Russian dairy product and beverage manufacturer
Wimm Bill Dann
( WBD) has earned a buy rating since December 2005. The company has shown impressive revenue growth, net income increases and significant growth in return on equity. Its return on equity in the last quarter exceeded that of the same quarter one year ago, a clear sign of strength within the company.
It has continued its growth strategy, expanding production capacity, diversifying product offerings and optimizing expenditures on logistics. Major acquisitions recently included one of the largest milk processors in Eastern Siberia, the largest milk processor in Surgut and Russia's fourth-largest dairy producer, Ochakovo.
Raw milk, juice concentrate, sugar and packaging materials -- Wimm Bill Dann's major inputs -- are facing major cost inflation and could present a risk to the buy rating should this trend continue. Plus, the increase in selling prices, adopted to offset the inflated costs, could negatively affect demand for its products.
Investment management firm
T. Rowe Price
has been rated a buy since June 2005. The company saw record assets under management of $349.9 billion at the end of the first quarter of 2007, with an inflow of nearly $9.6 billion during the period. Its initiatives in Europe, Asia and the Middle East have expanded its client base to more than 20 countries. Return on equity increased 93 basis points to 21.8% at the end of the period compared with the same quarter last year. The company is also in the midst of a share repurchase program, which could result in further return-on-equity improvement.
Any unexpected downturn in the securities markets and the economy in general, any deterioration in the relative investment performance, or any adverse regulatory developments could pose a risk to the buy rating.
( SII), which provides products and services to oil and gas exploration and production, has been rated a buy since May 2006. The company reported impressive financial results for the first quarter of the year: Revenue increased 25.3%, and net income shot up almost 50% compared with the same period the previous year.
Smith's performance depends on the level of oil and natural gas exploration and development activities, which are cyclical in nature. There has been a rise in oil prices in the past two years, which might lead to either a decline in demand or increased use of alternatives, which may ultimately result in the lowering of demand for oil.