Garmin ( GRMN - Get Report) 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.
Harsco ( HSC - Get Report) 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.
Manitowoc ( MTW - Get Report) 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.
Turkcell Iletisim Hizmetleri ( TKC - Get Report), a wireless phone company, has been rated buy since September 2005. The company's second quarter revenue increased 28.1% over a year ago to $1.50 billion, supported by strong increases in the subscriber base and minutes of usage, upward price adjustments, and the appreciation of the Turkish lira against the U.S. dollar. Net income more than tripled over the same period to $273.7 million, aided by margin expansion and lower taxes. However, Turkey is fighting high inflationary pressure and is suffering from a rising trade deficit. Also, intensifying competition in the Turkish market could hurt customer churn rates.
Heico ( HEI), a maker of aerospace, defense and electronics products, has been rated a buy since September 2005. The company has demonstrated a pattern of positive EPS growth over the past two years, and its year-on-year revenue growth of 30.3% for the third quarter was well above the industry average of 6.2%. Its debt-to-equity ratio of 0.12 is below that of the industry average, implying that there has been very successful management of debt levels. The stock's sharp appreciation of 42.77% in the 12 months since Sept. 27 has driven it to a price level that is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels. Heico's weak operating cash flow is not a threat to the buy rating at this time.