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.
, an investment manager, has been rated a buy since October 2005. The company has an impressive record of growth in revenue, a largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and compelling net income growth. The company has demonstrated a pattern of positive earnings growth over the past two years. TheStreet.com Ratings believes that this trend will continue.
These strengths should outweigh the fact that the company's return on equity has been disappointing. Securities-brokerage and investment-banking firms and other stocks in this sector are highly sensitive to interest-rate changes, equity market performance and the general health of the economy.
Designing, manufacturing and servicing electrical components and equipment for aircraft and industrial engines,
( WGOV) has had a buy rating since November 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.
Woodward Governor's stock price went up by 80.54% in the 12 months prior to Nov. 9, and while almost any stock can fall in a broad market decline, it should continue to move higher even though it has already enjoyed a very nice gain in the past year.
These strengths outweigh the company's subpar net income growth.
T. Rowe Price
has been rated a buy since October 2005. The company has seen strong growth in assets under management, which reached $381.90 billion in the third quarter of 2007 compared with $297.90 billion during the same period last year. Its client base in Europe, Asia and the Middle East expanded across more than 20 countries, an increased geographical market presence that should support asset growth going forward.
T. Rowe Price earned a return-on-equity of 23.51% at the end of the third quarter, surpassing both the industry and broader market averages. During the quarter, the company repurchased 1.59 million shares, and still has 16.64 million common shares remaining under its current repurchase authorization plan.
( PCU) mines, smelts and refines copper in southern Peru. It has had a buy rating since October 2005. The company's earnings per share improved by 20.3% to $2.13 per share in the third quarter compared with the same period last year, continuing a two-year pattern of positive EPS growth.
Southern Copper's stock price increased by 171.89% in the 12 months before Oct. 31, and it should continue to move higher. The company's revenue rose by 13.7% in the third quarter compared with the same period last year, although that figure trailed the industry average of 29.7%.
Although no company is perfect, TheStreet.com Ratings does not currently see any weaknesses that are likely to detract from the generally positive outlook.
has been rated buy since May 2006. The company has increased its global investments in energy efficiency as well as power and industrial infrastructure. This has lead to a significant increase in orders. ABB expects to benefit from the increasing demand for energy in China, India and the Middle East, with projections for the Asian market to grow by 50% and the Middle East and African markets to grow by 40% by 2011.
ABB has shown strong growth in its top-line due to margin expansion, lower interest expenses and a higher income from discontinued operations.
ABB is exposed to certain risks, including fluctuation in currency rates, rapidly changing technology and increasing competition, all of which could significantly affect its prospects.