BOSTON ( TheStreet) -- Here are the three best machinery stocks, according to TheStreet's quantitative model, which evaluates financial fundamentals and stock performance. They are ordered by potential to appreciate, from worst to best.

3. Flowserve ( FLS) makes industrial pumps used by companies in the oil-and-gas, power-generation and water-treatment industries. Its return on equity, a measure of profitability, beats the industry average as demonstrated in the chart above.

Quarter: Fourth-quarter profit declined 3.5% to $110 million, or $1.96 a share, as revenue inched up 2.6% to $1.2 billion. Flowserve's operating margin expanded from 13% to 16%. Its balance sheet stores $654 million of cash and $567 million of debt.

Stock: Flowserve has nearly doubled in the past year, outpacing U.S. indices. The stock trades at a price-to-projected-earnings ratio of 12, a 47% discount to its peer-group average. It's also cheap based on trailing earnings and sales per share.

Consensus: Of the 12 analysts covering Flowserve, 11 advise purchasing its shares and one recommends holding them. Stifel Nicolaus offers the loftiest price target, projecting the stock will climb another 35% to $140. RBC and Credit Suisse are also bullish.

2. China Fire & Security Group ( CFSG) makes fire-protection products, including detectors, controllers and extinguishers, for industrial customers in China. During the past three years, it has increased revenue 43% annually, on average. The company is scheduled to report fourth-quarter results today.

Quarter: Third-quarter profit rose 17% to $7.6 million, or 27 cents, as revenue climbed 48% to $25 million. The operating margin contracted from 37% to 34%. China Fire & Security Group holds $30 million of cash, equating to a quick ratio of 3.3, and no debt.

Stock: China Fire & Security Group has doubled in the past year, beating major benchmarks. The stock sells for a price-to-projected-earnings ratio of 9.3, a 59% discount to the industry average. It's expensive based on book value and sales per share.

Consensus: Just three researchers follow China Fire & Security Group. Roth Capital rates the stock "buy" and expects it to gain 52% to $23. Piper Jaffray and EVA Dimensions rate it "hold." TheStreet's stock model projects a price target of $20.27.

1. Bucyrus ( BUCY) makes equipment to extract coal, copper, oil sands and other minerals. It sells electric mining shovels, blasthole drills and draglines. Its stock has delivered annualized gains of 35% since 2007, depicted in the chart below.

Quarter: Fourth-quarter profit gained 24% to $81 million, or $1.07, as revenue fell 11% to $646 million. The operating margin expanded from 16% to 18%. Bucyrus holds $102 million of cash, translating to a quick ratio of 1.5, and $507 million of debt.

Stock: Bucyrus has quadrupled in the past year, outperforming U.S. indices. The stock trades at a price-to-projected-earnings ratio of 13, a 41% discount to its peer-group average. It is costly when considering book value and sales per share.

Consensus: Of the 19 analysts following Bucyrus, 13 advocate purchasing its shares and six counsel holding them. Sidoti & Co. believes the stock will rise 43% to $90. KeyBanc Capital Markets and Morgan Stanley expect it to outperform the market.

-- Reported by Jake Lynch in Boston.