TSC 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.The following fast-growth companies are projected to increase revenue and profits by at least 12% in the coming year and have received "buy" ratings from our 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: First-quarter revenue increased 28% to $125 million as net income jumped 24% to $29 million and earnings per share improved 26% to $2.07. Operating margin improved to 38% as net margin fell 23%. Strayer has no debt and a quick ratio of 1.5, indicating an ideal financial position. The stock: Strayer has fallen 5% in 2009, outperforming the Dow Jones Industrial Average and underperforming the S&P 500. The stock trades at a price-to-earnings ratio of 33 and offers a weak dividend yield of 1%. National Presto Industries ( NPK) makes small appliances, and defense and absorbent products. The numbers: First-quarter revenue increased 40% to $108 million as net income and earnings per share ascended 74% to $11 million and $1.58, respectively. Operating margin improved to 14% and net margin climbed to 10%. The company has no debt or interest expenses and abundant cash reserves, as reflected by a quick ratio of 3.6. The stock: National Presto is up 5% in 2009, outperforming the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 11 and pays a meager 1.3% dividend.
Teva Pharmaceuticals ( TEVA) is an Israeli company that develops and markets a range of generic and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients. The numbers: First-quarter revenue increased 22% to $3.1 billion as net income surged 225% to $451 million and earnings per share climbed 183% to 51 cents. Operating margin declined to 18% and net margin increased to 14%. The company has conservative leverage, as reflected by a debt-to-equity ratio of 0.5. But a quick ratio of 0.8 indicates a less-than-ideal liquidity position. The stock: Teva is up 17% in 2009, outperforming the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 48, indicating a significant premium to its peers, and offers a modest 1.2% dividend yield. Quality Systems ( QSII) develops and markets health-care information systems that automate medical and dental practices and networks of practices. The numbers: Fiscal fourth-quarter revenue ascended 28% to $66 million as net income inched up to $11.4 million and earnings per share fell 2% to 40 cents. Operating margin fell to 28% and net margin declined to 17%. The company has no debt or interest expenses and a strong cash balance, as reflected by a quick ratio of 2.1. The stock: Quality Systems has climbed 23% in 2009, outperforming all major U.S. indexes. The stock trades at an expensive price-to-earnings ratio of 33 and pays a dividend yield of 2.3%. Tyler Technologies ( TYL) provides information-technology services to local governments in the U.S., Canada, Puerto Rico and the U.K. The numbers: First-quarter revenue increased 17% to $70 million as net income and earnings per share doubled to $6 million and 16 cents, respectively. Operating margin improved from 8% to 14% and net margin climbed from 5% to 9%. The cash balance has decreased 82% to $7.4 million since the year-earlier quarter. And a quick ratio of 0.6 is a sign of weak liquidity. However, the company has a light debt load, as indicated by just $7.5 million of long-term obligations and a debt-to-equity ratio just above zero. The stock: Tyler Technologies has surged 36% in 2009, outperforming all major U.S. indexes. The stock trades at an expensive price-to-earnings ratio of 35 and doesn't pay dividends. TSC Ratings was given an award for "Best Stock Selection" among independent research providers by BNY ConvergEx Group. A rating can be viewed for any stock through our 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.