TheStreet.com Ratings: Top 10 Large-Cap Stocks

Garmin, CSX and Phelps Dodge top this week's big-cap list.
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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 large-cap stocks. These are stocks of companies with market capitalizations of over $10 billion that rank near the top of all stocks rated by our proprietary quantitative model, which looks at more than 62 factors.

In addition, the stocks must be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. The stocks are ordered by their potential to appreciate.

Today begins with

Garmin

(GRMN) - Get Report

, which makes navigation, communications and information devices based on GPS technology. It has been rated a buy since March 2005. The company has shown stellar revenue growth, notable return on equity and a two-year pattern of steady EPS growth, and it is carrying no debt.

Though no company is perfect, we do not currently see any weaknesses that are likely to detract from the generally rosy outlook.

CSX

(CSX) - Get Report

has been rated a buy since March 2005 and is the owner of one of the largest rail networks in the U.S. It has displayed impressive EPS increases and significantly improved net operating cash flow. It's revenue growth was only 8%, but that was more than four times the industry average of 1.9%.

These strengths outweigh the company's low profit margins.

Phelps Dodge

(PD) - Get Report

has been rated a buy since March 2005. The company produces copper, continuous-cast copper rod, molybdenum and molybdenum-based chemicals. Among the company's strengths are robust revenue growth, a very low debt-to-equity ratio and expanding profit margins.

Although the company may harbor some minor weaknesses, they are unlikely to have a significant impact on results.

Department store retailer

Nordstrom

(JWN) - Get Report

has had a buy rating since March 2005. Positives include a notable return on equity, a very low debt-to-equity ratio, increased net operating cash flow and expanding profit margins. Revenue growth was 14.4%, which significantly outpaced the industry average of 5.4%.

Though no company is flawless, there are currently no major weaknesses likely to detract from its largely positive outlook.

Rated a buy since March 2005,

Kimco Realty

(KIM) - Get Report

has interests in more than 1,000 neighborhood and community shopping centers. It has shown a wide range of strengths, including steady revenue growth, solid stock performance, compelling growth in net income and reasonable debt levels by most measures.

The company's revenue growth has slightly outpaced the industry average of 14.9%. Since the same quarter one year prior, revenue rose by 15.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, as displayed by a decline in earnings per share.

Rated a buy since March 2005,

Rockwell Collins

(COL)

provides design, production and support of communications and aviation electronics for military and commercial customers. The company has shown improved net income growth, strong EPS growth, increased net operating cash flow and reasonable debt levels.

Danaher

(DHR) - Get Report

-- a buy since March 2005 -- designs, manufactures and markets industrial and consumer products. The company operates in four segments: professional instrumentation, medical technologies, industrial technologies and tools and components. Danaher's cost-cutting measures and 11 acquisitions in 2006 created strong core revenue growth, net income growth and expanding profit margins, and are continuing to push the company's overall development.

Downside risks include any negative effects from the cost-cutting programs and any adverse changes in governmental relations.

Retailer

J.C. Penney

(JCP) - Get Report

has been rated a buy since November 2005. The company's strengths include solid shareholder returns, propelled by its healthy top- and bottom-line growth. Its recent merchandising initiatives aimed at more affluent customers are expected to continue the company's positive performance. It has also shown superior return on equity. J.C. Penney's strategy to continue this growth, the "2005 to 2009 Long-Range Plan," involves expanding its range of exclusive and private brands, appealing to more affluent customers, the launch of at least 150 new "off-mall" stores and making the shopping experience easier for customers.

The recent introduction of trendy new brands by competitors such as

Kohl's

(KSS) - Get Report

and

Target

(TGT) - Get Report

could threaten the buy rating, as could competition from

Federated Dept Stores

(FD)

or Penney's failure to react quickly to changing fashion trends.

Aerospace and defense contractor

Raytheon

(RTN) - Get Report

has been rated a buy since March 2005. Among the company's strengths are solid net income growth and a reliable pattern of EPS improvement over the past two years.

These strengths outweigh the company's low profit margins.

Oil and gas drilling contractor

GlobalSantaFe

(GSF)

has been rated a buy since March 2005. The company's strengths can be seen in multiple areas, including outstanding revenue growth, a very low debt-to-equity ratio, a pattern of impressive EPS growth over the past two years and net income growth that has significantly exceeded that of both its industry and the

S&P 500

.

Though the company may have a few minor flaws, they are unlikely to have a significant impact on results.