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) -- The following companies are projected to increase revenue and profit by at least 12% in the coming year. They receive "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate.
is a for-profit post-secondary education company that offers a variety of academic programs through Strayer University.
: Second-quarter revenue increased 29% to $126 million as net income climbed 29% to $28 million and earnings per share jumped 33% to $2. 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 ample liquidity.
: Strayer is up 1% in 2009, underperforming the
Dow Jones Industrial Average
S&P 500 Index
. The stock trades at an expensive price-to-earnings ratio of 35 and offers a dividend yield below 1%.
is an Israeli company that develops and markets a range of generic and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients.
: Second-quarter revenue ascended 20% to $3.4 billion as net income dropped 2% to $521 million and earnings per share fell 11% to 58 cents, hurt by a higher share count. The operating margin improved from 23% to 24% and 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 24% in 2009, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 55, indicating a significant premium to the market, and offers a modest 1.2% dividend yield.
National Presto Industries
manufactures small appliances, and defense and absorbent products.
: First-quarter revenue increased 40% to $108 million as earnings soared 74% to $11 million, or $1.58 per share. The operating margin improved to 14% and the net margin widened to 10%. National Presto has no debt or interest expenses and abundant cash reserves, as reflected by a quick ratio of 3.6.
: National Presto has increased 6% in 2009, beating the Dow but underperforming the S&P 500. The stock trades at a price-to-earnings ratio of 11 and offers an attractive 6% dividend yield.
develops and markets health-care information systems that automate medical and dental practices, and networks of practices.
: Fiscal first-quarter revenue advanced 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 $79 million of cash reserves, equating to a high quick ratio of 2.2, and no debt or interest expenses.
: Quality Systems has climbed 25% in 2009, beating the Dow and S&P 500. The stock trades at an expensive price-to-earnings ratio of 33 and offers a mediocre 2.2% dividend yield.
is the country's largest manufacturer of pickles and non-dairy creamer.
: First-quarter revenue decreased marginally to $355 million, but net income surged 518% to $13 million and earnings per share ascended 457% to 39 cents. The operating margin strengthened from 6% to 8% and the net margin jumped to 4%. Treehouse has a weak liquidity position, with just $2 million of cash and a quick ratio of 0.5. But a debt-to-equity ratio of 0.8 indicates reasonable leverage.
: Treehouse has increased 19% in 2009, outpacing the Dow and S&P 500. The stock trades at a costly price-to-earnings ratio of 26 and doesn't pay dividends.
-- Reported by Jake Lynch in Boston.