This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.
In the Upside newsletter, quantitative analyst Richard Moroney uses a proprietary system called Quadrix, a screening model that assesses stocks based on nearly 100 fundamental and technical variables.
Virtual Radiologic (VRAD) earns the Quadrix systems "best buy rating" and is the advisor's favorite investment pick for the coming year.
Moroney explains, "Virtual Radiologic offers on-call diagnostic imaging services, a unique niche that eases the workload of health-care facilities during peak hours, weekends, and holidays.
"It also addresses the shortage of radiologists amid increasing demand for digital imaging services. Virtual Radiologic's staff of certified radiologists read X-rays, CT scans, and MRIs for hospitals, clinics, and imaging centers.
"Sales have advanced 16% this year. Volumes at existing facilities rose 4% in the September quarter, while total images read jumped 23%.
"Virtual Radiologic has maintained high retention rates, though competition has resulted in price declines. For the December quarter, the two-analyst consensus projects 7% higher per-share earnings on 4% sales growth.
"With solid operating momentum and bright growth prospects, Virtual Radiologic seems reasonably valued at 16 times expected 2010 earnings. The stock is a Best Buy."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stocks of the nation's leading financial newsletter advisors.
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