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 60 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 oilfield services company
, which has been rated buy since July 2005. It saw double-digit revenue growth across its segments in the second quarter compared with the same period last year, and its operating margin for the quarter hit 28.16%, driven by increased exploration and drilling activity.
Schlumberger also completed the acquisitions of Geosystem and Tyumenpromgeofizika, a supplier of land and marine electromagnetic and seismic imaging services, and a geophysical and wireline logging services provider in Western Siberia, respectively. Schlumberger also shows a strong net income growth and improved return on equity, a clear sign of strength within the company.
The stock is not without its risk. In the short term, management cautioned of uncertainty in its North American market due to a rapid rise in gas storage levels and expected declines in commodity prices. These factors could hurt the company's performance over the long run.
produces fabricated metal products. It has been rated buy since August 2005. The company's revenue grew 18.7% in the second quarter of 2007 compared with the year-earlier period, exceeding the industry average of 4.6%. Its debt-to-equity ratio of 0.55 is below the industry average, implying that there has been successful management of debt levels.
Valmont has demonstrated a pattern of positive EPS growth over the past two years, a trend that should continue. Powered by strong earnings and other factors, the company's stock rose 49.37% in the 12 months prior to Aug. 3, and while it is now somewhat expensive compared with its industry peers, the company's strengths justify the higher price level. Valmont's low profit margins are no threat to the company's buy rating at this time.
Mobile devices and networks provider
has been rated buy since August 2005. Its strengths include robust revenue growth, a largely solid financial position with reasonable debt levels by most measures, a notable return on equity and a positive pattern of EPS growth over the past two years. This is a trend TheStreet.com Ratings expects to continue. Although no company is perfect, Nokia does not currently show any significant weaknesses likely to detract from the generally positive outlook.
, a maker of aerospace, defense and electronics products, has been rated buy since July 2005. The company has reported robust revenue growth, an impressive record of earnings-per-share growth, good cash flow from operations and solid stock price performance.
The company has demonstrated a pattern of positive EPS growth over the past two years, and its year-on-year revenue growth of 31.62% for the second quarter was well above the industry average of 6.3%. The stock's sharp appreciation over the last year has driven it to a price level that is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
Designing, manufacturing and servicing electrical components and equipment for aircraft and industrial engines,
( WGOV) has had a buy rating since August 2005. It demonstrates solid revenue growth, a very low debt-to-equity ratio and a largely solid financial position with reasonable debt and valuation levels. Its net operating cash flow increased 34.71% to $36.44 million in the third quarter of fiscal 2007 compared with the same period last year. These strengths outweigh the company's subpar net income growth.