TSC Ratings TheStreet.com Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety first" approach aims to reduce risk while achieving performance on a total return basis.
Each business day, we compile a list of the top five stocks in one of five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap.
Today, fast-growth stocks are in the spotlight. These companies are projected to increase revenue and profit by at least 12% in the coming year and have received buy ratings from our proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate.
is an Israel-based company that develops and markets a range of generic and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients. We have rated Teva buy since June 2007.
The company's fiscal first-quarter revenue increased 22% year over year to $3.14 billion as net income surged 225% to $451 million and EPS climbed 183% to 51 cents. Gross and operating margins declined 329 and 886 basis points to 55% and 18%, respectively, as net margin increased 893 basis points to 14%. Return on assets shed 419 basis points to 2.9%, and return on equity fell 631 basis points to 5.8%. The company has conservative leverage, as reflected by a debt-to-equity ratio of 0.52. But a quick ratio of 0.76 indicates a less-than-ideal liquidity position.
Shares of Teva Pharmaceuticals are flat so far in 2009, outperforming the
Dow Jones Industrial Average
and underperforming the
. The stock trades at a price-to-earnings ratio of about 46, indicating a significant premium to the market, and it offers a modest 1.25% dividend yield.
engages in the development and marketing of health care information systems in the United States. We have rated Quality Systems buy since June 2007.
The company's fiscal fourth-quarter revenue increased 29% year over year to $66 million as net income inched up .9% to $11 million, and EPS fell 2.4% to 40 cents on higher share count. Gross, operating and net margins fell 477, 521 and 470 basis points to 63%, 28% and 22%, respectively. Return on assets decreased 228 basis points to 19% and return on equity declined 560 basis points to 30%. The company has a strong financial position, with zero debt and ample cash reserves, which is evident in its 2.1 quick ratio.
Shares of Quality Systems have ascended 28% in 2009, outperforming all major U.S. indexes. The stock trades at a price-to-earnings ratio of around 34, indicating a sizable premium to the market, and it offers a 2.14% dividend yield.
is a for-profit post-secondary education company that offers a variety of academic programs through Strayer University. We have
since March 2003.
The company's fiscal first-quarter revenue increased 28% year over year to $125 million on increased student enrollments and a 50% increase in tuition fees since January. Net income jumped 24% to $29 million and EPS improved 26% to $2.07. Gross and operating margin improved 128 and 162 basis points to 71% and 38%, respectively, as net margin deteriorated 89 basis points to 23%. Return on assets increased 505 basis points to 29%, and return on equity jumped 1,692 basis points to 60%. Strayer has no debt and a quick ratio of 1.47, indicating an ideal financial position.
Shares of Strayer have fallen 1% in 2009, in line with the Dow Jones Industrial Average. Yet at current price levels, the stock is trading at a premium to the market as reflected by a price-to-earnings ratio of 35. A 1% dividend yield sweetens the stock, but is below the S&P 500 average yield.
provides information technology, engineering and professional services to Federal agencies. We have rated NCI buy since February 2008.
The company's fiscal first-quarter revenue increased 15% year over year to $105 million and net income surged 29% to $4.7 million as EPS climbed 26% to 34 cents. Gross, operating and net margins improved 11, 38 and 50 basis points to 13%, 7.6% and 4.5%, respectively. Return on assets increased 246 basis points to 9.3% and return on equity jumped 153 basis points to 17%. The company has a strong financial position, with ample cash reserves and modest leverage, as reflected by a quick ratio of 1.55 and a debt-to-equity ratio of .29.
Shares of NCI are flat in 2009, outperforming the Dow Jones Industrial Average and underperforming the S&P 500. The stock trades at a price-to-earnings ratio around 23, indicating a premium to the market, and does not pay dividends.
( MVL) engages in the licensing, publishing and film production businesses, with a proprietary library of 5,000 comic book characters. We have rated Marvel buy since June 2007.
The company's fiscal first quarter revenue ascended 75% to $197 million but net income and EPS fell 1.7% to $45 million and 47 cents, respectively. Gross margin climbed 450 basis points to 93%, but operating margin shed 2,327 basis points to 37% and net margin deteriorated 1,759 basis points to 23%. Return on assets improved 851 basis points to 24% and return on equity climbed 1,544 basis points to 48%. The company has a sound capital structure, as reflected by a debt-to-equity ratio of .15. However, a quick ratio of just .64 indicates weak liquidity.
Shares of Marvel have surged 16% in 2009, outperforming the Dow Jones Industrial Average and the S&P 500 and matching the Nasdaq Composite's gain. The stock trades at a price-to-earnings ratio of around 14, which is roughly in line with the market, and does not pay dividends.
TSC Ratings was recently given an award for "Best Stock Selection" amongst independent research providers by BNY ConvergEx Group. To see how your portfolio can utilize our research, click here.A rating can be viewed for any stock through our screener stock rating screener. Each rating is derived from a variety of fundamental and pricing figures and represents our opinion of risk-adjusted performance relative to a 5,000+ stock coverage universe. However, the rating does not incorporate all factors that can alter a stock's performance, such as corporate or industry events, technology innovations and shifts in competitive dynamics.