TheStreet.com Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety first" approach aims to reduce risk while achieving total return performance.
) -- The following mid-cap companies have market values between $500 million and $10 billion, and "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. The stocks are ordered by their potential to gain.
Church & Dwight
sells household products, including Arm & Hammer Baking Soda and Brillo Pads.
: Second-quarter net income climbed 27% to $58 million and earnings per share climbed 23% to 88 cents, restrained by a higher share count. Revenue rose 5% to $623 million. Its operating margin increased from 14% to 16% and its net margin topped 9%. A quick ratio of 1.2 demonstrates ample liquidity and a debt-to-equity ratio of 0.5 indicates conservative leverage.
: Church & Dwight is up 5% this year, keeping pace with the
Dow Jones Industrial Average
, but trailing the
S&P 500 Index
. The stock trades at an expensive price-to-earnings ratio of 21 and offers a dividend yield below 1%. The company's record of consistent earnings growth regardless of economic conditions makes it an attractive investment.
provides analytical services to determine occupational and environmental radiation exposure.
: Fiscal third-quarter earnings rose 13% to $6.5 million, or 70 cents, as revenue jumped 7% to $23 million. Its operating margin hovered above 38% and its net margin expanded to 29%. Landauer has an ideal financial position with $32 million of cash and no debt, translating to a quick ratio of 1.6.
: Landauer is down 19% this year, lagging major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 24, but offers an attractive 3.6% dividend yield.
is a for-profit education company that offers courses in technology, business and accounting.
: Second-quarter net income climbed 29% to $28 million, or $2, as revenue increased 29% to $126 million. Its operating margin climbed from 34% to 36% and its net margin remained steady at 22%. Strayer has no debt, and a quick ratio of 1.6 indicates strong liquidity.
: Strayer is up 1% this year, underperforming major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 33 and offers a dividend yield less than 1%. But Strayer will benefit as unemployed Americans seek to broaden their skills to appeal to employers.
J&J Snack Foods
sells snacks and frozen beverages.
: Fiscal third-quarter earnings climbed 38% to $15 million, or 80 cents, as revenue increased 2% to $180 million. Its operating margin climbed from 10% to 14%, and its net margin increased from 6% to 8%. Over $81 million of cash reserves and a quick ratio of 1.9 demonstrate ample liquidity. And the company has minimal debt.
: J&J Snack has climbed 19% this year, outpacing the Dow and S&P 500. The stock trades at an expensive price-to-earnings ratio of 21 and offers a dividend yield less than 1%.
manages and evaluates blood donations for hospitals and plasma collectors.
: Fiscal first-quarter net income climbed 26% to $18 million, or 69 cents, as revenue improved 7% to $154 million. Its operating margin increased from 15% to 17%, and its net margin jumped from 10% to 12%. The company has $173 million of cash and just $22 million of debt. A quick ratio of 2.8 demonstrates strong liquidity and a debt-to-equity ratio just above zero indicates minimal leverage.
: Haemonetics is down 1% this year, underperforming major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 25 and doesn't pay dividends. However, Haemonetics is poised for strong growth as baby boomers age and health-care providers try to maximize the efficiency of their blood supplies.
-- Reported by Jake Lynch in Boston