Harsco ( HSC) provides industrial services and engineered products to the steel, construction, railway and energy industries. It has been rated a buy since September 2005. The company demonstrates robust revenue growth, good cash flow from operations, net income growth that has outperformed its industry average and a pattern of positive EPS growth over the past two years. Powered by these strong financial results, Harsco's stock has appreciated by 50.20% in the 12-month period prior to Sept. 27.
Garmin ( GRMN) makes navigation, communications and information devices based on GPS technology. It has been rated a buy since September 2005. The company has shown outstanding revenue growth, notable return on equity, a two-year pattern of steady increases in EPS, and it is carrying no debt. These strengths outweigh the fact that Garmin is trading at a premium valuation according to TheStreet.com Ratings' review of its current price compared with factors such as earnings and book value.
Designing, manufacturing and servicing electrical components and equipment for aircraft and industrial engines, Woodward Governor ( WGOV) has had a buy rating since September 2005. It demonstrates solid revenue growth, a very low debt-to-equity ratio and a largely solid financial position with reasonable debt and valuation levels. Its net operating cash flow increased 34.71% to $36.44 million in the third quarter of fiscal 2007 compared with the same period last year. These strengths outweigh the company's subpar net income growth.
Manitowoc ( MTW) manufactures and markets cranes and related products, food service equipment and marine products. It has been rated a buy since September 2005. The company demonstrates notable revenue growth, significant EPS improvement, impressive stock price appreciation and net income growth that has significantly outpaced that of the S&P 500 and its industry. Its price level is now somewhat expensive compared with the rest of its industry, but given the company's strengths, the higher price is justified.
Circor International ( CIR) engages in the design, manufacture and distribution of valves and fluid control products. It has been rated a buy since September 2005. The company's year-on-year revenue growth of 14.9% in the second quarter outpaced the industry average of 5.1%. Its earnings improved by 50.0% in the same timeframe, continuing a two-year pattern of positive EPS growth. TheStreet.com Ratings believes this trend will continue. Circor has also seen good cash flow from operations and its stock price increased 50.92% in the 12 months prior to Sept. 28. These strengths outweigh the company's low profit margins.