TSC Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety first" approach aims to reduce risk while achieving total return performance.BOSTON ( TheStreet) -- The following fast-growth companies are projected to increase revenue and profit by at least 12% in the coming year and receive "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. They are ordered by their potential to appreciate. 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. The operating margin declined to 18% and the 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 18% in 2009, outperforming the Dow Jones Industrial Average and the 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. National Presto Industries ( NPK) makes small appliances, and defense and absorbent products. The numbers: First-quarter revenue increased 40% to $108 million as earnings ascended 74% to $11 million, or $1.58 per share. The operating margin improved to 14% and the net margin climbed to 10%. National Presto has no debt or interest expenses and abundant cash reserves, as reflected by a quick ratio of 3.6. The stock: National Presto is down 1% in 2009, underperforming the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 11 and offers an attractive 6% dividend yield.
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. The operating margin improved to 38% as the net margin fell to 23%. Strayer has no debt and a quick ratio of 1.5, indicating an ideal financial position. The stock: Strayer is flat in 2009, underperforming the Dow and S&P 500. The stock trades at an expensive price-to-earnings ratio of 35 and offers a dividend yield below 1%. 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 rose 28% to $66 million as net income inched past $11 million and earnings per share fell 2% to 40 cents. The operating margin shrank to 28% and the 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 offers a lackluster dividend yield of 2.2%. NCI ( NCIT) provides IT engineering and professional services to federal agencies. With mounting budget deficits and a growing national debt, Washington is looking to streamline. NCI offers an attractive play on this trend. The numbers: First-quarter revenue increased 15% to $105 million as net income rose 29% to $4.7 million and earnings per share climbed 26% to 34 cents. The operating margin improved to 8% and the net margin widened to 5%. The company has a high quick ratio of 1.6, but just $1.4 million of cash, compared to $31 million of debt. The stock: NCI has fallen 2% in 2009, underperforming the Dow and S&P 500. The stock trades at a high price-to-earnings ratio of 23 and doesn't pay dividends. TSC Ratings was given an award this year for "Best Stock Selection" among independent research providers by BNY ConvergEx Group. A rating can be viewed for any stock through our screener. Ratings are derived from a variety of fundamental and pricing figures and represent our opinion of risk-adjusted performance. However, the rating doesn't incorporate all factors that can alter a stock's performance. -- Reported by Jake Lynch in Boston. Feedback can be sent to firstname.lastname@example.org.