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) -- These companies are projected to increase revenue and profit by at least 12% in the coming year and have earned "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate.
is a post-secondary education company that offers courses in accounting, business and information technology.
: Second-quarter net income climbed 29% to $28 million, or $2 a share, as revenue increased 29% to $126 million. The operating margin climbed from 34% to 36% and the net margin remained steady at 22%. Strayer has no debt. A quick ratio of 1.6 indicates ample liquidity.
: Strayer is up 1% this year, underperforming the
Dow Jones Industrial Average
S&P 500 Index
. The stock trades at an expensive price-to-earnings ratio of 33 and offers a dividend yield less than 1%.
sells software that helps companies collect payments, manage claims and investigate potential fraud.
: Second-quarter net income almost quadrupled to $11.2 million, or 30 cents, as revenue rose 25% to $64 million. The operating margin expanded from 5% to 18% and the net margin increased from 6% to 18%. Pegasystems has an outstanding liquidity position, evident in its quick ratio of 3.9, and has no debt.
: Pegasystems shares have more than doubled this year, trouncing major U.S. indices. The stock trades at an exorbitant price-to-earnings ratio of 48 and offers a dividend yield less than 1%. By comparison, companies in the S&P 500 pay an average dividend yield of 3.6%. Pegasystems' software helps companies cut costs by automating processes, making it an appealing stock in a recession.
Teva Pharmaceutical Industries
is a drug company based in Israel.
: Second-quarter net income dropped 2% to $521 million and earnings per share fell 11% to 58 cents, hurt by a higher share count. Revenue jumped 20% to $3.4 billion. The operating margin increased from 23% to 24%, but the net margin dropped from 19% to 15%. A quick ratio of 0.9 indicates a less-than-ideal liquidity position. And a debt-to-equity ratio of 0.4 reflects a modest debt load.
: Teva is up 22% this year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 54, a significant premium to the market, and offers a modest 1.2% dividend yield.
designs and sells software and computer systems that manage medical records and billing.
: Fiscal first-quarter revenue increased 21% to $67 million, but net income fell 7% to $10 million and earnings per share dropped 10% to 36 cents, hurt by a higher share count. The operating margin deteriorated from 32% to 25% and the net margin declined from 20% to 16%. The company has zero debt and $79 million of cash reserves for a high quick ratio of 2.2.
: Quality Systems has climbed 18% this year, beating the Dow and S&P 500. The stock trades at an expensive price-to-earnings ratio of 32 and offers a mediocre 2.3% dividend yield.
Lincoln Educational Services
offers training in medical technology, skilled trades, hospitality and automotive maintenance
: Second-quarter net income rose sixfold to $7.4 million, or 27 cents, as revenue climbed 51% to $128 million. The operating margin increased from 3% to 11% and the net margin grew from 1% to 6%. The company has a less-than-ideal liquidity position, with just $13 million of cash. But a debt-to-equity ratio of 0.2 indicates modest leverage.
: Lincoln is up 70% this year, outpacing major U.S. indices. The stock trades at a fair price-to-earnings ratio of 19, but doesn't pay dividends. Lincoln's services will remain in demand as unemployment peaks and workers seek to develop skills that appeal to employers.
-- Reported by Jake Lynch in Boston. Feedback can be sent to email@example.com.