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Five fast-growth U.S. stocks for 2010 Add to ...

The following five companies are projected by analysts to increase revenue and profit by at least 12 per cent in the coming year. TheStreet.com's quantitative equity model rates each of the fast-growth companies "buy."

1. Teva Pharmaceuticals is an Israeli drugmaker.

The numbers: Third-quarter net income inched up 3 per cent to $649-million, but earnings per share fell 6 per cent to 72 cents. Revenue increased 25 per cent to $3.6-billion. Teva's operating margin ascended from 23 per cent to 24 per cent. A quick ratio of 0.9 indicates less-than-ideal liquidity. A debt-to-equity ratio of 0.3 reflects modest leverage.

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The stock: Teva has risen 35 per cent over the past year, beating the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 63, a premium to pharmaceutical peers. Shares offer a 1.1 per cent dividend yield.



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2. O'Reilly Automotive sells car parts.

The numbers: Third-quarter profit more than doubled to $87-million, or 63 cents a share, as revenue grew 13 per cent to $1.3-billion. O'Reilly's operating margin widened from 8 per cent to 11 per cent. A quick ratio of 0.2 indicates weak liquidity. A 0.3 debt-to-equity ratio reflects modest leverage.

The stock: O'Reilly Automotive has advanced 22 per cent over the past year, more than the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 19, a discount to auto-retail peers. O'Reilly doesn't pay dividends.

3. Lincoln Educational Services provides career education.

The numbers: Third-quarter profit more than doubled to $14-million, or 50 cents a share, as revenue rose 48 per cent to $148-million. Lincoln's operating margin increased from 10 per cent to 16 per cent. The company has a liquid balance sheet, with $38-million of cash and $37-million of debt.

The stock: Lincoln has soared 63 per cent during the past year, outpacing major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to education peers. Lincoln doesn't pay dividends.

4. Neogen sells food-safety tests.

The numbers: Fiscal second-quarter profit increased 18 per cent to $4.6-million, or 20 cents a share. Revenue climbed 13 per cent to $35-million. Neogen's operating margin expanded from 19 per cent to 21 per cent. The company has an ideal financial position, with $32-million of cash and no debt.

The stock: Neogen has fallen 8 per cent over the past year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 36, a premium to health-care-supply peers. Neogen doesn't pay dividends.

5. DeVry is a for-profit educator.

The numbers: Fiscal first-quarter profit increased 57 per cent to $55-million, or 76 cents a share. Revenue advanced 42 per cent to $431-million. DeVry's operating margin widened from 15 per cent to 18 per cent. A quick ratio of 0.9 indicates less-than-ideal liquidity. A 0.1 debt-to-equity ratio demonstrates minimal leverage.

The stock: DeVry has declined 1 per cent during the past 12 months, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 22, on par with education peers. Shares offer a 0.4 per cent dividend yield.

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