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 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.
makes navigation, communications and information devices based on GPS technology. It has been rated a buy since September 2005. The company has shown outstanding revenue growth, notable return on equity, a two-year pattern of steady increases in EPS, and it is carrying no debt.
These strengths outweigh the fact that Garmin is trading at a premium valuation according to TheStreet.com Ratings' review of its current price compared with factors such as earnings and book value.
provides industrial services and engineered products to the steel, construction, railway and energy industries. It has been rated a buy since September 2005. The company demonstrates robust revenue growth, good cash flow from operations, net income growth that has outperformed its industry average and a pattern of positive EPS growth over the past two years. Powered by these strong financial results, Harsco's stock has appreciated by 50.20% in the 12-month period prior to Sept. 27.
manufactures and markets cranes and related products, food service equipment and marine products. It has been rated a buy since September 2005. 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 the company's strengths, the higher price is justified.
Turkcell Iletisim Hizmetleri
, a wireless phone company, has been rated buy since September 2005. The company's second quarter revenue increased 28.1% over a year ago to $1.50 billion, supported by strong increases in the subscriber base and minutes of usage, upward price adjustments, and the appreciation of the Turkish lira against the U.S. dollar. Net income more than tripled over the same period to $273.7 million, aided by margin expansion and lower taxes. However, Turkey is fighting high inflationary pressure and is suffering from a rising trade deficit. Also, intensifying competition in the Turkish market could hurt customer churn rates.
, a maker of aerospace, defense and electronics products, has been rated a buy since September 2005. The company has demonstrated a pattern of positive EPS growth over the past two years, and its year-on-year revenue growth of 30.3% for the third quarter was well above the industry average of 6.2%. Its debt-to-equity ratio of 0.12 is below that of the industry average, implying that there has been very successful management of debt levels.
The stock's sharp appreciation of 42.77% in the 12 months since Sept. 27 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. Heico's weak operating cash flow is not a threat to the buy rating at this time.