First up is Volvo which sold its car business to Ford in 1999 but still makes trucks, buses, construction equipment and aircraft engine parts. It has been rated a buy since March 2005. The company has shown stellar revenue growth, solid stock price performance, outstanding EPS growth and compelling growth in net income. These strengths outweigh the company's low profit margins.
Garmin ( GRMN - Get Report) makes navigation, communications and information devices based on GPS technology. It has been rated a buy since March 2005. The company has shown stellar revenue growth, notable return on equity, a two-year pattern of steady EPS growth and a minuscule debt-to-equity ratio.
Albemarle ( ALB - Get Report), which develops, manufactures and markets specialty chemicals around the world, has been rated a buy since March 2005. The company's strengths include notable return on equity, impressive increases in net income, and a compelling record of EPS growth. Albemarle's stock has shown a dramatic appreciation, making it relatively more expensive compared with its industry peers. However, its other strengths justify the higher price levels.
Russian dairy products and beverages manufacturer Wimm Bill Dann has earned a buy rating since December 2005. The company has recently completed strategic acquisitions of several companies with strong brand portfolios and leading market positions in their respective regions. It has also shown impressive revenue growth, net income increases and an attractive return on equity. The buy rating is not without risk. Prices for Wimm Bill Dann's major inputs -- such as raw milk, juice concentrate, sugar and packaging materials -- are facing major inflation. Should the trend continue, the company's future profits might be hurt.
Cummins ( CMI - Get Report), rated a buy since March 2005, designs, manufactures, distributes and repairs diesel and natural gas engines and electric power generation systems. The company shows steady revenue growth, a low debt-to-equity ratio and improving net income growth. It recently announced plans to enter the light-duty diesel market in the U.S. and China, and launched a joint venture to make engines with the Beijing-based Beiqi Foton Motor Company. Because Cummins operates in various competitive geographical markets, the buy rating depends on the economic conditions of the automotive, construction and general industrial sectors. Growth prospects would likewise be dimmed by any decline in margins or return on equity.
AllianceBernstein Holding ( AB - Get Report), which provides diversified investment management to a broad range of clients, has been rated a buy since March 2005. The company shows a number of positive financial measures, including a striking record of EPS growth, robust revenue growth, and a very high gross profit margin. These impressive financial strengths justify the relatively high price of the stock, because the company shows no other significant weaknesses.
Telephone titan AT&T ( T) has rung up a buy rating since March 2006. This is based on a number of positive investment measures, including robust revenue growth, net income growth and notable cash flow. Its growth has been driven by acquisitions. The completion of the BellSouth acquisition will generate higher cash flow, and AT&T expects its wireless segment, which now includes all Cingular and BellSouth businesses, to deliver double-digit earnings growth in fiscal year 2007.
Oil and gas transportation company Oneok Partners (OKS) has maintained a buy rating since June 2006. The company has recently acquired valuable natural gas and processing assets that reduce its dependence on regulated fee-based transportation revenue. Oneok shows impressive revenue growth, and superior return-on-equity that is significantly higher than that of the industry and the S&P 500 averages. It also has enjoyed impressive net income growth. Risks to the buy rating include an unexpected rise in interest rates, which could drag down profits because the company has raised more debt to fund its aggressive expansion strategy. Oneok is also vulnerable to the risk of a compressed gathering and processing margin, which is related to volatile natural gas prices.
Rated a buy since March 2005, Kimco Realty ( KIM) has interests in more than 1,000 neighborhood and community shopping centers. It has shown a wide range of strengths, including steady revenue growth, solid stock performance, compelling growth in net income and reasonable debt levels. The company's revenue growth has slightly outpaced the industry average of 14.9% in its most recent quarter. This growth in revenue does not appear to have trickled down to the company's bottom line, as evidenced by a decline in earnings per share.
Real estate and money management service company Jones Lang LaSalle ( JLL - Get Report) has had a buy rating since March 2005. The company has impressive strengths, including a noteworthy return on equity (a sign of internal strength), impressive net operating cash flow and a significant appreciation of its share price, which should continue to move higher.