TSC Ratings TheStreet.com Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety-first" approach aims to reduce risk while achieving performance on a total return basis.Fast-growth stocks are in the spotlight again. These companies are projected by analysts to increase revenue and profit by at least 12% in the coming year and receive "buy"-ratings from TheStreet.com Ratings' proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate. Strayer Education ( STRA) is a for-profit post-secondary education company that offers a variety of academic programs through Strayer University. The numbers: Fiscal first-quarter revenue increased 28% to $125 million on higher student enrollment and a 50% jump in tuition since January. Net income rose 24% to $29 million, and earnings per share improved by 26% to $2.07. Return on equity jumped 1,692 basis points to 60%. Strayer has no debt and a quick ratio of 1.47, indicating an ideal financial position. The stock: Strayer has fallen 2% in 2009, outperforming the Dow Jones Industrial Average and underperforming the S&P 500 Index. Yet the shares are trading at a high price-to-earnings ratio of 35. Its 1% dividend yield is below the S&P 500 average. National Presto Industries ( NPK) makes small appliances, and defense and absorbent products. The numbers: Fiscal first-quarter revenue increased 40% to $108 million as net income and earnings per share ascended 74% to $11 million and $1.58, respectively. Return on equity advanced 254 basis points to 17%. The company has no debt or interest expenses and abundant cash reserves, as reflected by a quick ratio of 3.57. The stock: National Presto is down 3% in 2009, in line with the Dow. The shares trade at a price-to-earnings ratio of just 11 and offer a 1.3% dividend yield.
Teva Pharmaceuticals ( TEVA) is an Israeli-based company that develops and markets a range of generic and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients. The numbers: Fiscal first-quarter revenue advanced 22% to $3.14 billion as net income surged 225% to $451 million, and earnings per share climbed 183% to 51 cents. Return on equity fell 631 basis points to 5.8%. The company has conservative leverage, as reflected by a debt-to-equity ratio of 0.52. But a quick ratio of 0.76 indicates a less-than-ideal liquidity position. The stock: Teva is up 16% in 2009, outperforming all major U.S. indexes. The shares trade at a price-to-earnings ratio of about 48, a significant premium to the company's peers, and offer a modest 1.22% dividend yield. Quality Systems ( QSII) develops and markets health care information systems in the U.S. The numbers: Fiscal fourth-quarter revenue rose 29% to $66 million as net income inched up 0.9% to $11 million, and earnings per share fell 2.4% to 40 cents on a higher share count. Return on equity declined 560 basis points to 30%. The company has a strong financial position, with zero debt and ample cash reserves. The stock: Quality Systems has risen 28% in 2009, outperforming all major U.S. indexes. The shares trade at a price-to-earnings ratio of about 34, a sizable premium to the market, and pays a 2.14% dividend yield. Medco Health Solutions ( MHS) is one of the nation's largest pharmacy-benefit managers. The numbers: Fiscal first-quarter revenue rose 14% to $14.8 billion, beating the industry average growth rate of 1.1%. Net income increased 8% to $291 million, as earnings per share improved 16% to 58 cents. Return on equity rose 382 basis points to 19% on a lower share count. The company has an adequate liquidity position and conservative leverage. The stock: Medco has risen 6.5% in 2009, outperforming the Dow and S&P 500. The shares are trading at a price-to-earnings ratio of about 20, a premium to its peers in the health care services industry. TSC Ratings was recently given an award for "Best Stock Selection" among independent research providers by BNY ConvergEx Group. To see how your portfolio can utilize our research, click here. A rating can be viewed for any stock through our stock rating screener. Each rating is derived from a variety of fundamental and pricing figures and represents our opinion of risk-adjusted performance relative to a 5,000+ stock coverage universe. However, the rating does not incorporate all factors that can alter a stock's performance, such as corporate or industry events, technology innovations and shifts in competitive dynamics.