Each business day, TheStreet.com Ratings compiles a list of the top five stocks in one of five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- based on data from the close of the previous trading session. Today, all-around-value stocks are in the spotlight.

These are stocks of companies that meet a number of criteria, including annual revenue of more than $500 million, lower-than-average valuations such as a price-to-sales ratio of less than 2, and leverage that is less than 49% of total capital.

In addition, they must rank near the top of all stocks rated by our proprietary quantitative model, which looks at more than 60 factors. The stocks must also be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. They are ordered by their potential to appreciate.

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.

Lockheed Martin ( LMT) is a global security company headquartered in Maryland. We have rated it a buy since May 2004 based on various strengths, such as the company's impressive record of EPS growth and increase in net income.

For the second quarter of fiscal 2008, the company reported slight revenue growth of 3.6% year over year. The second quarter also brought EPS improvement of 18.1% when compared with the same quarter a year ago. Net income increased by 13.4% in the second quarter, rising from $778.00 million in the second quarter of fiscal 2007 to $882.00 million. In addition, net operating cash flow increased slightly by 6.19%.

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