Marvel, Strayer, NCI, Teva: Top 5 Stocks

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BOSTON (TheStreet) -- The following 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're ordered by their potential to appreciate, starting with the company with the best growth prospects.

Teva Pharmaceuticals(TEVA Quote) is an Israeli company that develops generic and branded pharmaceuticals, biogenerics and active pharmaceutical ingredients.

The numbers: Second-quarter net income dropped 2% to $521 million and earnings per share fell 11% to 58 cents, hurt by a higher share count, as revenue ascended 20% to $3.4 billion. The operating margin increased from 23% to 24%, but the net margin dropped from 19% to 15%. A quick ratio of 0.9 indicates a less-than-ideal liquidity position. And a debt-to-equity ratio of 0.4 reflects a modest debt load.

The stock: Teva is up 22% in 2009, beating the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 54, indicating a significant premium to the market, and offers a modest 1.2% dividend yield.

Pegasystems(PEGA Quote) sells software to automate business processes.

The numbers: Second-quarter net income surged 294% to $11.2 million and earnings per share increased 275% to 30 cents as revenue rose 25% to $64 million. The operating margin ascended from 5% to 18% and the net margin advanced from 6% to 18%. Pegasystems has an outstanding liquidity position, which is evident in its quick ratio of 3.9, and has no debt or interest expenses.

The stock: Pegasystems has rocketed 136% in 2009, trouncing major U.S. indices. The stock trades at an exorbitant price-to-earnings ratio of 44 and offers a dividend yield below 1%. By comparison, companies in the S&P 500 Index pay an average dividend yield of 3.6%. Automation software reduces corporate expenses and therefore has recessionary appeal.