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.
Specialty chemical company
( LZ) leads the list today. It has been rated a buy since August 2005. Powered by strong earnings growth, the company's stock has jumped 42.06% over the 12 months prior to Aug. 3, and it should continue to move higher even though it has seen a very nice gain in the past year.
Lubrizol has demonstrated a pattern of positive EPS growth over the past two years, a trend that TheStreet.com Ratings expects it will maintain. Net income growth has greatly exceeded that of the
. These strengths outweigh the company's low profit margins.
rejoins the top-five mid-cap ranking for the first time since May. The Peruvian financial services firm has been rated a buy since August 2005. The company's revenue growth has been higher than that of the industry average, helping create a pattern of EPS improvement over the past 24 months.
Net income growth has significantly exceeded that of the S&P 500 and the commercial bank industry, and return on equity has likewise outpaced the industry average. Even though Credicorp's stock has soared 114.31% in the 12 months prior to Aug. 3, making it relatively expensive in comparison with others in the the industry, its strengths justify the higher price level.
Real estate and money management service company
Jones Lang LaSalle
has been rated a buy since August 2005. It has a proven track record of EPS growth over the past two years, a trend that should continue.
Net income growth has exceeded that of the
and greatly outperformed compared with the real estate management and development industry, and net operating cash flow increased by 268.95% in the second quarter of 2007 compared with the same period a year ago. Its performance has helped the company's stock grow by 38.78% in the 12 months prior to Aug. 3, an appreciation that shows no signs of slowing.
These strengths outweigh the company's low profit margins.
provides advanced positioning products to commercial and government users across the globe. It has been rated a buy since August 2005. The company shows robust revenue growth, and it sports a very low debt-to-equity ratio, suggesting successful debt management.
Trimble also displays a record of positive EPS growth over the past two years, a trend that TheStreet.com Ratings expects to continue. Though its stock has increased by 63.53% in the year ended Aug. 3, it should keep moving higher even though it has enjoyed a nice gain in the past 12 months.
These strengths outweigh the company's somewhat disappointing return on equity.
provides onshore seismic data acquisition services to oil and gas companies. It has been rated a buy since August 2005. The company's revenue increased nearly 50% in the second quarter of 2007 compared with the same period last year, and it has no debt to speak of.
Net income increased by 605.45% in that time frame, dwarfing the industry average. Dawson has shown a pattern of EPS growth in the last two years, a trend that should continue. Powered by these strengths, Dawson's stock price has grown by 127.64% in the 12 months prior to Aug. 3, making it relatively expensive compared with others in its industry. TheStreet.com Ratings believes the company's strengths justify its higher price level.