Each business day, TheStreet.com Ratings compiles a list of the top five stocks in five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- and publishes these lists in the Ratings section of our Web site. This list is based on data from the close of the previous trading session. Today, fast-growth stocks are in the spotlight. These are stocks of companies that are projected to increase revenue and profit by at least 12% in the coming year and rank near the top all stocks rated by our proprietary quantitative model, which looks at over 60 factors. In addition, the stocks must be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. Please note that definitions of revenue vary by industry, and this screen does not make adjustments for acquisitions, which can materially affect posted results. Likewise, earnings-per-share growth may be affected by accounting charges, share repurchases and other one-time items. Note that no provision is made for off-balance-sheet assets such as unrealized appreciation/depreciation of investments, market value of real estate or contingent liabilities that might affect book value. This could be material for some companies with large underfunded pension plans.
Top Fast-Growth Stocks
Mobile TeleSystems OJSC ( MBT), a mobile-phone operator, has been rated buy since September 2005. The Russian company has experienced solid growth in revenue and net income, a strong cash level and attractive return on equity. However, the company faces increased competition and declining revenue in the handset and accessories segment. Third-quarter profit increased 34.6% to $654.7 million or 33 cents a share. Revenue grew 23.3% to $2.22 billion. Total consolidated subscribers rose 15.4% to 77.97 million from 67.59 million. In September, the company announced the acquisition of an 80% stake in International Cell Holding, which is a 100% indirect owner of K-Telecom CJSC, Armenia's largest mobile-phone operator. This should help open growth opportunities in the fast-growing Commonwealth of Independent States. However, the company faces stiff competition, as evidenced by its declining average monthly service revenue per subscriber, particularly in the Ukraine. Additionally, lower revenue from its handsets and accessories segment could restrict its growth potential.