Each week, 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.
The list, last updated Nov. 23, 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.
Mobile TeleSystems OJSC
, a mobile phone operator, has been rated buy since September 2005. The Russian company has experienced solid growth in revenue and net income, a strong cash level and attractive return on equity. However, the company faces increased competition and declining revenue in the handsets & accessories segment.
Third-quarter profit increased 34.6% to $654.7 million or 33 cents a share. EPS missed the consensus estimate of $1.16 a share. Revenue grew 23.3% to $2.22 billion. In September, the company announced the acquisition of an 80% stake in International Cell Holding Ltd, which is a 100% indirect owner of K-Telecom CJSC, Armenia's largest mobile phone operator. This should help open growth opportunities in the fast-growing Commonwealth of Independent States.
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.
Fiscal-year fourth-quarter profit totaled $36 million, or $1.02 a share, up from $17.1 million, or 49 cents a share, a year earlier. Revenue increased 25% to $290.8 million. Woodward Governor's stock price has climbed over the last year and while almost any stock can fall in a broad market decline, it should continue to move higher. These strengths outweigh the company's subpar net income growth.
designs, manufactures and overhauls products for motion control and flow control applications. It has been rated a buy since July 2006. The company's strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins.
Third-quarter profit increased 23.7% from a year ago to $25.18 million. Revenue totaled $396.3 million, up from $311.8 million a year ago. Curtiss-Wright has reported somewhat volatile earnings recently, but TheStreet.com Ratings believe it is poised for EPS growth in the coming year. These strengths outweigh the company's somewhat disappointing return on equity.
Chicago Bridge & Iron
, an engineering and construction company, has been rated buy since August 2006. The company's strengths can be seen in several areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of EPS growth and compelling increase in net income.
These strengths are expected to outweigh the company's weak operating cash flow. Third-quarter net income increased 80% over a year ago to $58.7 million, or 61 cents a share, while revenue climbed 36% to $1.17 billion. The company has demonstrated a pattern of EPS growth over the past two years. We believe that this trend should continue. Chicago Bridge & Iron has also raised its guidance for 2007.
manufactures and sells dispensing systems to the personal care, cosmetic, pharmaceutical and food/beverage markets worldwide. It has been rated a buy since October 2005. Third-quarter revenue increased 19.9% over a year ago to $485.69 million, powered by strong sales, favorable exchange-rate movements and acquisitions. These factors, along with lower net interest expense and lower tax rates, boosted net income by 39.5% to $39.48 million for the quarter.
AptarGroup also implemented a share buyback program authorizing the repurchase of about $19.70 million worth of stock during the fourth quarter. In addition to noting its notable financial performance, TheStreet.com Ratings is encouraged by the company's solid fourth-quarter earnings outlook, its initiatives to increase shareholder returns and its strong balance sheet.