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 of all stocks rated by our proprietary quantitative model, which looks at more than 60 factors.
The stocks must also be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. They are ordered by their potential to appreciate.
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 begins with Russian dairy product and beverage manufacturer
Wimm Bill Dann
( WBD), which has earned a buy rating since December 2005. The company has recently completed strategic acquisitions of several companies with strong brand portfolios and leading market positions in their respective regions. It has also shown impressive revenue growth, net income increases and significant growth in return on equity.
The buy rating is not without risk. Prices for Wimm Bill Dann's major inputs -- such as raw milk, juice concentrate, sugar and packaging materials -- are facing major inflation. Should the trend continue, the company's future profits might be hurt.
, a manufacturer of complex metal components and products for the aerospace and industrial gas turbine industries, has been rated a buy since March 2005.
The company has completed recent acquisitions to expand its casting, forging and fastener products offerings, which should fuel revenue growth. Precision also shows strong cash flow that has enabled it to repay debt while maintaining its dividend payout.
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.
has been rated a buy since March 2005. The company shows a number of positive financial measures, including a striking record of EPS growth, robust revenue growth and a very high gross profit margin.
These impressive financial strengths justify the relatively high price of the stock, because the company shows no other significant weaknesses.
Retail pharmacy chain
has been rated a buy since March 2005. It displays strong revenue growth, a pattern of positive EPS growth over the past two years, and a low debt-to-equity ratio beneath that of the industry average.
These strengths outweigh the company's somewhat disappointing return on equity.
has rung up a buy rating since March 2006. This is based on a number of positive investment measures, including robust revenue growth, net income growth and good cash flow from operations.
The company's growth has been driven by acquisitions. The completion of the BellSouth acquisition will generate higher cash flow, and AT&T expects its wireless segment, which now includes all Cingular and BellSouth businesses, to deliver double-digit earnings growth in 2007.
Risks to the buy rating include stiff competition from wireline and cable operators, merger-related challenges and a decline in return on equity, all of which could restrict the company's growth prospects.