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 mid-cap stocks. These are stocks of companies that have market capitalizations between $500 million and $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 real estate and money management service company
Jones Lang LaSalle
, which has had a buy rating since December 2004. The company shows impressive strengths, including a noteworthy return on equity (a sign of internal strength), stellar revenue growth and a pattern of EPS growth reflected in the impressive appreciation of its share price.
With positive investment measures across the board, the company's low profit margins are nothing to fret about.
, a manufacturer of industrial packaging products, has secured a buy rating since December 2004. The company has two classes of shares on our list (which is why there are only nine companies mentioned today).
Greif shows a convergence of positive investment measures, including a notable return on equity, revenue growth that has outpaced its industry, and compelling growth in net income. The company has demonstrated a pattern of positive EPS growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year.
Paint-manufacturer, distributor and retailer
has earned a buy rating since December 2004. The company's strengths include solid revenue growth, steady stock-price appreciation, notable net income growth and expanding profit margins.
Though no company is without its minor blemishes, Sherwin-Williams' positive performance shows no signs of chipping away and is positioned for continued upward momentum.
Sporting a buy rating since December 2004,
owns and operates specialty products and lighting-equipment businesses. The company has numerous strengths, including notable return on equity, good cash flow from operations, revenue growth and a pattern of positive EPS growth over the past two years.
Though no company is flawless, there are currently no weaknesses likely to detract from the generally positive outlook.
is a full-service transportation provider that offers truck brokerage and logistics services throughout North America. The company's stock has been rated a buy since December 2004. Hubs' strengths include its noteworthy return on equity, revenue growth and largely solid financial position.
The company has reasonable debt levels by most measures, an impressive record of EPS growth and compelling growth in net income. TheStreet.com Ratings believes these strengths outweigh the company's low profit margins.
Rated a buy since December 2004,
owns and operates several prominent banks in South America. The company's strengths can be seen in its notable return on equity, EPS growth and expanding profit margins.
Though the company may have a few minor weaknesses, TheStreet.com Ratings believes they are unlikely to have a significant impact on results.
Jack in the Box
( JBX), which owns and operates its eponymous burger restaurants as well as the Mexican food chain Qboda, has earned a buy rating since December 2004. Its revenue growth, solid stock-price performance, impressive record of EPS growth and reasonable valuation levels position it to continue its strong performance.
These strengths outweigh the fact that the company shows a weak operating cash flow.
makes oil and gas pressure-control equipment, and has garnered a buy rating since February 2005. The company showed stellar revenue growth in 2006, mainly due to strong demand for its products thanks to increased drilling activities in the booming oil and gas industries. Cameron also showed a record order backlog for the year, which when combined with its pricing power, should maintain its top-line growth and continue to improve earnings.
The company is not without risk. With steadily rising oil prices during the last two years, any decline in demand or increasing usage of alternative fuels could threaten future earnings. Cameron might also be unable to fulfill its backlog, which would not only drag down profitability, but also sour customer relationships and goodwill.
Rated a buy since August 2005,
develops, manufactures, markets and services equipment for video, voice and data communications. The company's strengths include a favorable debt-to-equity ratio, solid stock-price performance and good cash flow from operations. The growth in its stock price has made it relatively expensive compared with its industry peers, but given its strengths, the higher price levels are justified.
TheStreet.com Ratings currently do not see any significant weaknesses that are likely to detract from Polycom's generally positive outlook.