TheStreet.com Ratings: Top 10 Fast-Growth Stocks - TheStreet

Each weekday, TheStreet.com Ratings compiles a list of the top 10 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, we look at fast-growth stocks. 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 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.

Today starts with

Precision Castparts

(PCP)

, a manufacturer of complex metal components and products for the aerospace and industrial gas turbine industries. It has been rated a buy since March 2005.

The company has completed recent acquisitions to expand its casting, forging and fastener products offerings, fueling revenue growth. Precision also shows strong cash flow that has enabled it to repay debt while maintaining its dividend payout.

Since Precision depends on the aerospace industry for its top-line growth, any slowdown in that industry could lead to reduced demand for its products. Any fluctuations in the prices of basic materials or any unseen difficulty integrating recent acquisitions could also be concerns.

Russian dairy products and beverages manufacturer

Wimm Bill Dann

( WBD) has earned a buy rating since December 2005. The company has recently completed strategic acquisitions of several companies with strong brand portfolios and leading market positions in their respective regions. It has also shown impressive revenue growth, net income increases and an attractive return on equity.

The buy rating is not without risk. Prices for Wimm Bill Dann's major inputs -- such as raw milk, juice concentrate, sugar and packaging materials -- are facing major inflation. Should the trend continue, the company's future profits might be hurt.

Albemarle

(ALB) - Get Report

develops, manufactures and markets specialty chemicals around the world. It has been rated a buy since March 2005. The company's strengths include notable return on equity, impressive increases in net income and a compelling record of EPS growth.

These positives outweigh the company's low profit margins. Albemarle's stock has shown a dramatic appreciation, making it relatively expensive compared with its industry peers. Nevertheless, its other strengths justify the higher price levels.

Volvo

( VOLV) sold its car business to Ford in 1999 but still makes trucks, buses, construction equipment and aircraft engine parts. It has been rated a buy since March 2005.

The company has shown stellar revenue growth, solid stock price performance, outstanding EPS growth and compelling growth in net income. These strengths outweigh the company's low profit margins.

Cummins

(CMI) - Get Report

, rated a buy since March 2005, designs, manufactures, distributes and repairs diesel and natural gas engines and electric power generation systems. The company shows steady revenue growth and a low debt-to-equity ratio. It also recently announced plans to enter the light-duty diesel market in the U.S. and China, and launched a joint venture to make engines with Beijing-based Beiqi Foton Motor Company.

Because Cummins operates in various competitive markets, the buy rating depends on the economic conditions of the automotive, construction and general industrial sectors. Growth prospects would likewise be dimmed by any decline in margins or return on equity.

Telephone titan

AT&T

(T) - Get Report

has rung up a buy rating since March 2006. This is based on a number of positive investment measures, including robust revenue growth, net income growth and expanding margins.

The company's growth has been driven by acquisitions. The completion of the BellSouth acquisition will generate higher cash flow, and AT&T expects its wireless segment, which now includes all Cingular and BellSouth businesses, to deliver double-digit earnings growth in 2007. Risks to the buy rating include stiff competition from wireline and cable operators, merger-related challenges and a decline in return on equity, all of which could restrict the company's growth prospects.

Oil and gas transportation company

Oneok Partners (OKS)

has maintained a buy rating since June 2006. The company has recently acquired valuable natural gas and processing assets that reduce its dependence on regulated fee-based transportation revenue.

Oneok shows impressive revenue growth and superior return-on-equity that is significantly higher than that of the industry average. It also has enjoyed notable net income growth.

Risks to the buy rating include an unexpected rise in interest rates, which could drag down profits because the company has taken on more debt to fund its aggressive expansion strategy. Oneok is also vulnerable to the risk of a compressed gathering and processing margin, which is related to volatile natural gas prices.

AllianceBernstein Holding

(AB) - Get Report

, which provides diversified investment management to a broad range of clients, has been rated a buy since March 2005. The company shows a number of positive financial measures, including a striking record of EPS growth, robust revenue growth and a very high gross profit margin.

These impressive financial strengths justify the relatively high price of the stock, because the company shows no other significant weaknesses.

Rated a buy since November 2005,

Belden CDT

(BDC) - Get Report

designs, manufactures and markets high-speed electronic cables, connectivity products and related items for the specialty electronics and data networking markets. It displays revenue growth, a very low debt-to-equity ratio, a pattern of EPS growth over the past two years and impressive stock price appreciation.

These strengths outweigh the company's low profit margins.

Boutique jewelry and watchmaker

Movado

(MOV) - Get Report

has been ticking along with a buy rating since March 2005. The company should continue to outperform the majority of stocks rated by

TheStreet.com

, even though the stock already has been outpacing the

S&P 500

.

The company has a wide range of positives, including a commendable debt-to-equity ratio and revenue growth that has more than tripled the industry average. Movado also shows attractive valuation levels and displays no major weaknesses to threaten the buy rating in the foreseeable future.