Each weekday, 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.
This list, updated daily, is based on data from the close of the previous trading session. Today, mid-cap stocks are in the spotlight. These are stocks of companies that have market capitalizations of 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 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.
Today begins with oil and gas transportation company
, which 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 return on equity that is significantly higher than 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.
Rated a buy since February 2007,
Molson Coors Brewing
brews and distributes a diverse range of beers. Among its strengths are revenue growth, a pattern of positive EPS growth over the past two years, impressive net income growth and a strong gross profit margin.
While no company is perfect, Molson Coors currently shows no significant weaknesses that would be likely to affect the buy rating.
, rated a buy since March 2005, supplies precision instruments and services worldwide. The company shows steady revenue growth, strong stock price performance, a notable pattern of EPS growth over the past 24 months and net income growth that has significantly exceeded that of its industry peers.
Given its impressive performance, Mettler-Toledo's weak operating cash flow is not a threat to its buy rating.
, a manufacturer of specialty metals and engineered products, has earned a buy rating since March 2005. The company shows a convergence of positive investment measures, including a notable return on equity, impressive stock price appreciation and compelling EPS growth.
The company's low profit margins are unlikely to threaten its buy rating.
Rated a buy since March 2005,
West Pharmaceutical Services
manufactures components and systems for subcutaneous drug delivery and related products for the health care, personal care and consumer products markets.
The company displays revenue growth that has outpaced the industry average, sharp stock price appreciation, improved EPS and net income growth that has exceeded that of the
. These strengths outweigh its low profit margins.