) -- Major U.S. indices fell sharply yesterday, but several stocks hit 52-week highs.

5. Canadian Solar

(CSIQ) - Get Report

rose 3.9% to $21.42. On Tuesday, the solar-panel maker's third-quarter earnings beat the average estimates of analysts by 15 cents. Yesterday, the shares got a boost after competitor

Trina Solar


beat earnings expectations.

Our take

: Canadian Solar's third-quarter net income more than doubled to $25 million, or 69 cents a share, from a year earlier as shipments hit a record. Its vertically-integrated business model has helped it achieve higher margins than those of peers. Canadian Solar benefitted from increased sales in Europe. The company's shares have more than tripled this year.

4. King Pharmaceuticals

( KG) climbed 5.1% to $11.76. On Nov. 5, the company beat analysts' third-quarter earnings expectations. Investors have been buying shares and call options since the announcement.

Our take

: We rate King Pharmaceuticals "hold." Third-quarter net income plummeted 48% to $42 million, or 17 cents a share, as revenue grew 19% to $463 million. King's gross margin declined from 74% to 65%, and its operating margin dropped from 30% to 20%. We give King Pharmaceuticals a growth score of 2.2 out of 10.

3. Donaldson

(DCI) - Get Report

jumped 7.9% to $44.73. The industrial-filter maker said fiscal first-quarter profit fell 28%, but management raised the company's full-year forecast.

Our take

: We rate Donaldson "buy." Although our model hasn't processed its latest quarterly financial data, Donaldson receives a cumulative financial strength score of 7.9 out of 10, higher than the "buy"-list average. The company remained profitable during the recession. Its return on equity, a key measure of profitability, consistently beats the industry average and the

S&P 500 Index


2. Teck Resources


inched up 0.1% to $34.87. Earlier this week, the company said it would use proceeds from the sale of a site in Mexico to reduce its debt.

Our take

: We rate Teck Resources "hold." Third-quarter net income jumped 43% to $609 million, but earnings per share only climbed 7% to $1.02 because of its higher share count. Revenue grew 22% to $2.1 billion. Teck's gross margin slipped from 46% to 45%, and its operating margin dropped from 35% to 29%. We give Teck Resources a financial strength score of 1.5 out of 10.

1. Merck

(MRK) - Get Report

advanced 0.5% to $35.33. The drugmaker made a milestone payment to research collaborator


(LGND) - Get Report


Our take

: We rate Merck "buy." Third-quarter net income tripled to $3.4 billion, or $1.61 a share, as revenue inched up 2% to $6 billion. Merck's gross margin rose from 82% to 83%, and its operating margin increased from 28% to 30%. Merck has an admirable financial position, with $22 billion of cash and $9.1 billion of debt. Merck trades at a discount to drugmakers based on trailing earnings, projected earnings, book value and sales.