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 receive "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. The stocks are ordered by their potential to appreciate.
Church & Dwight
sells household products, including Arm & Hammer Baking Soda and Brillo Pads, worldwide.
: Second-quarter revenue increased 5% to $623 million as net income increased 27% to $58 million and earnings per share climbed 23% to 88 cents, restrained by a higher share count. The operating margin ascended from 14% to 16% and the net margin advanced past 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% in 2009, underperforming major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 19 and offers a dividend yield below 1%. The company's record of consistent earnings growth regardless of economic conditions makes it an attractive investment.
is a for-profit post-secondary education company.
: Second-quarter net income climbed 29% to $28 million and earnings per share jumped 33% to $2 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 or interest expenses. And a quick ratio of 1.6 indicates strong liquidity.
: Strayer is flat in 2009, underperforming major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 32 and offers a dividend yield below 1%. Strayer will capitalize on recessionary pressures as Americans seek to broaden their skills in order to appeal to employers.
provides analytical services to determine occupational and environmental radiation exposure.
: Fiscal third-quarter earnings rose 13% to $6.5 million, or 70 cents a share, as revenue jumped 7% to $23 million. The operating margin hovered above 38% and the net margin improved to 29%. Landauer has an ideal financial position. Its balance sheet houses $32 million of cash, translating to a quick ratio of 1.6, and the company has financed itself entirely with equity, so it has no debt or interest expenses.
: Landauer is down 20% in 2009, underperforming major U.S. indices. The stock trades at an expensive price-to-earnings ratio of 23, but offers an attractive 3.6% dividend yield.
sells software to automate business processes.
: Second-quarter net income surged 294% to $11.2 million and earnings per share increased 275% to 30 cents as revenue rose 25% to $64 million. The operating margin widened from 5% to 18% and the net margin stretched from 6% to 18%. Pegasystems has an outstanding liquidity position, which is evident in its quick ratio of 3.9, and has no debt or interest expenses.
: Pegasystems has rocketed 146% in 2009, trouncing major U.S. indices. The stock trades at an exorbitant price-to-earnings ratio of 46 and offers a dividend yield below 1%. By comparison, companies in the S&P 500 pay an average dividend yield of 3.6%. Automation software reduces corporate expenses and has a high appeal during recessions.
J&J Snack Foods
distributes snack foods and frozen beverages throughout the U.S.
: Fiscal third-quarter revenue increased 2% to $180 million as earnings improved 38% to $15 million, or 80 cents a share. The operating margin climbed from 10% to 14% and the 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 holds minimal debt.
: J&J Snack has climbed 19% in 2009, outpacing the Dow and S&P 500. The stock trades at an expensive price-to-earnings ratio of 21 and offers a dividend yield below 1%.
TSC Ratings was given an award this year for "Best Stock Selection" among independent research providers by BNY ConvergEx Group. A rating can be viewed for any stock through our
. Ratings are derived from a variety of fundamental and pricing figures and represent our opinion of risk-adjusted performance. However, the rating doesn't incorporate all factors that can alter a stock's performance.
-- Reported by Jake Lynch in Boston.