The Top Five Mid-Cap Stocks

Bio-Reference Laboratories, Strayer, Maximus, DeVry and Church & Dwight receive top-marks from our stock-model.
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BOSTON (

TheStreet

) -- The

Russell Midcap Index

soared 54% during the past year, beating its large- and small-cap counterparts. The following five mid-cap stocks are likely to outperform in 2010.

5. Bio-Reference Laboratories

(BRLI)

provides clinical testing services in the New York metropolitan area.

The numbers

: Fiscal fourth-quarter profit increased 37% to $7.2 million, or 51 cents a share, as revenue advanced 26% to $102 million. Bio-Reference's operating margin expanded from 12% to 13%. Its quick ratio of 1.9 and debt-to-equity ratio of 0.2 reflect a strong financial position.

The stock

: Bio-Reference Laboratories increased 61% during the past year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 25, a premium to health care peers. Bio-Reference doesn't pay dividends.

4. Strayer Education

(STRA) - Get Report

offers training courses online and in classrooms.

The numbers

: Fourth-quarter profit increased 32% to $32 million, or $2.32 a share, as revenue climbed 29% to $147 million. Strayer's operating margin inched up from 35% to 36%. The company boasts a liquid balance sheet, with $117 million of cash and no debt.

The stock

: Strayer advanced 14% during the past year, trailing U.S. benchmarks. The stock trades at a price-to-earnings ratio of 28, a premium to diversified consumer services peers. The shares offer a 1.4% dividend yield.

3. Maximus

(MMS) - Get Report

is a government consultant.

The numbers

: Fiscal first-quarter net income rose 5.6% to $13 million and earnings per share climbed 17% to 81 cents, boosted by a smaller float. Revenue increased 19% to $202 million. The company's operating margin hovered at 12%. Maximus holds $132 million of cash and no debt.

The stock

: Maximus gained 55% during the past year, more than major U.S. indices. The stock trades at a price-to-earnings ratio of 18, a discount to IT-services peers. The shares offer a 0.9% dividend yield.

2. DeVry

(DV)

sells training courses and degree programs.

The numbers

: Fiscal second-quarter profit soared 69% to $72 million, or $1 a share, as revenue grew 28% to $473 million. DeVry's operating margin widened from 17% to 23%. The company boasts a liquid balance sheet, with $389 million of cash and $45 million of debt.

The stock

: DeVry advanced 6.7% during the past year, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 20, a discount to consumer services peers. The shares offer a 0.3% dividend yield.

1. Church & Dwight

(CHD) - Get Report

sells household products.

The numbers

: Fourth-quarter profit increased 19% to $53 million, or 74 cents a share, as revenue grew 4% to $671 million. Church & Dwight's operating margin expanded from 14% to 15%. Its quick ratio of 1.2 and debt-to-equity ratio of 0.5 reflect financial stability.

The stock

: Church & Dwight rose 26% during the past year, trailing U.S. benchmarks. The stock trades at a price-to-earnings ratio of 19, a premium to household products peers. The shares offer a 0.9% dividend yield.

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