Each business day, TheStreet.com Ratings TheStreet.com Ratings compiles a list of the top five stocks in one of five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- based on data from the close of the previous trading session. Today, fast-growth stocks are in the spotlight.
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 all stocks rated by our proprietary quantitative model, which looks at over 60 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.
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.
is an international higher education company that operates DeVry University, Ross University, Chamberlin College of Nursing, and Becker Professional Review. The company has been
since January 2007. DeVry's strengths can be seen in a variety of areas, such as its impressive record of earnings-per-share growth, robust revenue growth, return on equity, and largely solid financial position. Soild stock price performance also contributes to the buy rating.
The company announced on Jan. 27 that its revenues rose 35% year over year in the second quarter of fiscal 2009, helped by increased revenue across segments and the acquisition of U.S. Education, which is the parent company of Apollo College and Western Career College. Revenue growth appears to have trickled down to the bottom line, as DeVry reported EPS improvement of 20.4%. Higher enrollment numbers also helped boost earnings. Net income also increased, rising to $42.87 million from $35.81 million in the second quarter of fiscal 2008. Return on equity, which improved slightly when compared to the same quarter a year ago, can be seen as a modest strength for the organization. In addition, a debt-to-equity ratio of 0.18 indicates that DeVry has successfully managed its debt levels.
Management was pleased not only with DeVry's financial results in the second quarter, but also with the employment rate of its graduates. Management stated that it was remarkable in the current job market to see 92% of recent graduates employed within six months of graduation. The company continues with a conservative capital structure that it feels is appropriate to the current economic climate, although it does continue to invest in growth opportunities. Looking ahead, DeVry expects its full year 2009 capital expenditure to be in the range of $65 million to $70 million. Although the company shows low profit margins, we feel that the strengths detailed above outweigh any weaknesses at this time.
is a for-profit post-secondary education services corporation, offering a variety of academic programs through wholly-owned Strayer University. Our
for Strayer has not changed since March 2003, and is based on a variety of strengths that include the company's revenue and earnings per share (EPS) growth and its largely solid financial position.
For the fourth quarter of fiscal 2008, Strayer's revenue rose 28.2% year over year due to increased enrollment and a 5% tuition increase that went into effect in January 2008. As a result, earnings per share improved 27.6%, while net income increased 24.1% from $19.5 million in the fourth quarter of fiscal 2007 to $24.2 million. Another favorable sign for the company is that it is debt free, resulting in a debt-to-equity ratio of zero. In addition, a quick ratio of 1.77 demonstrates the ability to cover short-term liquidity needs.
Management stated that it was pleased with both the fourth quarter and full-year results for fiscal 2008. The company anticipates strong enrollment growth for the 2009 winter term, along with the opening of new campuses. Based on these factors, Strayer announced first quarter fiscal 2009 EPS guidance at a range of $1.96 to $1.98 per share. Although the company shows weak operating cash flow, we feel that its strengths justify any potential weakness at this time.
provides technologies and solutions for mission-critical national security programs for the intelligence community, the space community, and various departments and agencies of the U.S. federal government. ManTech has been
since March 2005. Our rating is based on strengths such as the company's robust revenue growth, largely solid financial position, and record of EPS growth.
For the third quarter of fiscal 2008, revenue rose by 26.8% year over year. This increase was primarily the result of a business strategy focused on high-end defense and intelligence markets supporting U.S. national security. Revenue growth appears to have helped boost earnings per share, which improved 31.4% when compared to the same quarter a year ago. The EPS increase from $0.51 to $0.67 represents the continuation of a pattern of positive EPS growth demonstrated by ManTech over the past two years, a trend which we feel should continue. Net income also increased in the third quarter, rising from $17.48 million in the third quarter of fiscal 2007 to $23.86 million in the most recent quarter. ManTech's very low debt-to-equity ratio of 0.007 and quick ratio of 1.42 illustrate the company's successful management of debt levels and ability to avoid short-term cash problems.
Management announced it was pleased with the third quarter results, as strong performance and excellent cash flow helped provide necessary flexibility in a challenging economic environment. Based on strong business momentum in its national security and defense business, the company set EPS guidance at $0.67 to $0.70 for the fourth quarter and $2.53 to $2.56 for full-year fiscal 2008. These ranges represent 10% to 15% growth over the fourth quarter of fiscal 2007 and 30% to 31% growth over full-year fiscal 2007. The company currently shows low profit margins, but we feel that the strengths detailed above outweigh any potential weakness.
is a global leader in blood processing technology, designing, manufacturing, and marketing automated blood processing systems and single use consumables for blood donors and surgical patients. Our
for Haemonetics has been in place since February 2004, based on such strengths as the company's robust revenue growth, largely solid financial position, improvement in net income and earnings per share, and solid stock price performance.
For the third quarter of fiscal 2009, the company reported on Feb. 2 that its revenue rose 15.5% year over year, with double-digit growth recorded across all geographies. This improvement slightly outpaced the industry average of 13.6%. It also appears to have trickled down to the company's bottom line, as EPS increased 14.8% when compared to the same quarter a year ago. Net income grew 13.1%, rising from $14.34 million to $16.22 million. Haemonetics has a very low debt-to-equity ratio of 0.02, implying that it has successfully managed its debt levels. In addition, a quick ratio of 2.92 indicates that the company has the ability to cover its short-term cash needs.
Due to stronger-than-planned sales of plasma disposables, blood bank disposables, and equipment and the strong third quarter revenue results from all geographies, Haemonetics raised its full year revenue guidance. The company now anticipates revenue growth of 15.0% to 16.0%, up from previously announced expectations for 12% to 14% full year revenue growth. The company shows somewhat disappointing return on equity, but we feel that the strengths detailed above outweigh any potential weakness at this time.
is a biopharmaceutical company that discovers, develops and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases worldwide. We
in October 2008, based on such strengths as the company's revenue growth, return on equity, solid stock price performance, and impressive record of EPS growth.
For the fourth quarter of fiscal 2008, revenue increased 30.5% year over year on higher product sales. Product sales surged 35.3%, driven by strong growth of antiviral product sales (these in turn make up the most significant portion of overall revenue for the company). Fourth-quarter net income improved 41.5% when compared to the same quarter last year, primarily due to increased sales of Gilead's HIV drugs. Boosted by the improved revenue, EPS increased 46.3% in the most recent quarter, continuing a trend of positive EPS growth over the past two years. A slight improvement in return on equity makes that measure a modest strength for the organization.
Looking at where the stock price is today, we see that it is not only higher than it was a year ago, but it has also outperformed the rise in the
over the same period. The company's strong earnings growth may have been key to this performance, although other factors clearly paid a role. Although the company may harbor some minor weaknesses, we feel that they are unlikely to significantly impact future results and therefore consider this stock as having good upside potential in most market conditions.
Our quantitative rating, which can be viewed for any stock through our stock screener stock rating screener, is based on a variety of historical fundamental and pricing data and represents our opinion of a stock's risk-adjusted performance relative to other stocks. However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company.For those reasons, we believe that a rating alone cannot tell the whole story and that it should be part of an investor's overall research.