BOSTON (

TheStreet

) -- The

Russell Mid-Cap Index

has outpaced the blue-chip benchmarks in 2009. Shares of these medium-sized companies are likely to outperform in the new year.

5. Sybase

( SY) designs systems software.

The numbers

: Third-quarter net income increased 20% to $39 million, or 43 cents a share, as revenue rose 3% to $293 million. Sybase's gross margin declined from 78% to 77%, but its operating margin climbed from 19% to 24%. The company has a liquid balance sheet, with $1.1 billion of cash and $751 million of debt.

The stock

: Sybase has advanced 73% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 24, a premium to the market, but a discount to software peers. Sybase doesn't pay dividends.

4. DeVry

(DV)

provides training courses and degree programs.

The numbers

: Fiscal first-quarter profit increased 57% to $55 million, or 76 cents a share, as revenue grew 42% to $431 million. DeVry's gross margin remained steady at 57%, and its operating margin rose from 15% to 18%. A quick ratio of 0.9 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.1 demonstrates modest leverage.

The stock

: DeVry has risen 4% this year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 23, a premium to the market and education peers. The shares have a 0.3% dividend yield.

3. Prosperity Bancshares

(PRSP) - Get Report

is a bank in Texas.

The numbers

: Third-quarter profit surged 90% to $29 million, or 63 cents a share, as revenue grew 39% to $117 million. Prosperity's gross margin widened from 66% to 73%, and its operating margin stretched from 36% to 48%. The bank is adequately capitalized, with $157 million of cash and short-term investments. Its 0.3 debt-to-equity ratio indicates modest leverage.

The stock

: Prosperity Bancshares has rallied 32% this year, outpacing the

Dow Jones Industrial Average

and

S&P 500 Index

. The stock trades at a price-to-earnings ratio of 17, a discount to the market and regional bank peers. The shares have a 1.6% dividend yield.

2. Church & Dwight

(CHD) - Get Report

sells household products.

The numbers

: Third-quarter net income soared 43% to $70 million, or 98 cents a share. Revenue inched up 2% to $646 million. Church & Dwight's gross margin rose from 43% to 49%, and its operating margin expanded from 15% to 18%. A quick ratio of 1.1 indicates adequate liquidity. A debt-to-equity ratio of 0.5 reflects conservative leverage.

The stock

: Church & Dwight has risen 6% this year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 18, a discount to the market, but a premium to household products peers. The shares have a 0.9% dividend yield.

1. Balchem

(BCPC) - Get Report

sells specialty chemicals.

The numbers

: Third-quarter profit increased 43% to $6.9 million, or 36 cents a share. Revenue dropped 7% to $54 million. Balchem's gross margin rose from 25% to 30%, and its operating margin ascended from 12% to 19%. The company has $39 million of cash and $6.6 million of debt.

The stock

: Balchem has risen 36% this year, more than the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 26, a premium to the market and chemical peers. The shares have a 0.3% dividend yield.

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