Medifast, Inc.

Highlighted stocks include Medifast, Inc. (MED - Snapshot Report), Noven Pharmaceuticals, Inc. (NOVN), MasTec, Inc. (MTZ - Snapshot Report), and Harris Corporation (HRS - Analyst Report).

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Medifast, Inc. (MED - Snapshot Report) announced on Dec 16 that it would exceed previously announced revenue guidance for 2008 as weight loss products remained hot.

The company, which sells portion-controlled weight loss products and programs through the Internet, physicians and Medifast Weight Control Centers, raised its revenue forecast to in excess of $100 million for fiscal 2008 compared to the previous range of $90.5 million to $92 million.

The $100 million in revenue would be a company record.

Medifast continues to see strong growth in its Take Shape for Life segment, which comprised 44% of year-to-date revenues through Sep 30, 2008. The company said the strong growth was continuing in the fourth quarter.

The tough economic environment is actually pumping up Medifast's results. According to MED, during recessions, its business usually benefits as consumers decide to pay attention to improving their health and appearance.

Analyst Projects Growth in 2009

The one analyst that covers the company is bullish going into 2009, expecting 51.35% year-over-year earnings growth in 2009.

Full-year 2008 is now expected at 37 cents per share, down a penny in the last 30 days. The 2009 estimate call for 56 cents per share, up from 53 cents in the last 2 months.

Fourth quarter and fiscal 2008 results will be reported on Mar 4, 2009.

Value Fundamentals Are Still Solid

Medifast was a Zacks #1 Rank (strong buy) company when we reviewed it on Oct 16, 2008 and is now a Zacks #2 Rank (buy) stock. It is trading at only 9.9x forward earnings and its price-to-book is 2.07.

Read the Oct 16 analysis and the Nov 17, 2008 update on the third-quarter earnings results.

Update to Previous Value Zacks Rank Buy Stocks

Noven Pharmaceuticals, Inc. (NOVN), the specialty drug manufacturer, surprised on estimates by 60% in the third quarter as revenue rose 18%. NOVN is trading at 14.5x forward earnings. Read the Dec 30, 2008 analysis.

MasTec Inc. (MTZ - Snapshot Report), the designer of infrastructure for communications companies, recently issued bullish 2009 guidance after closing on a $400 million acquisition. In November, the company reported all-time record quarterly revenue. MTZ is trading at 9.6x forward earnings. Read the Dec 31, 2008 analysis.

Harris Corporation (HRS - Analyst Report), a provider of communication and information technology to governments and commercial customers worldwide, continues to see strong demand as revenue rose 11% in the first quarter of 2009. HRS has a forward P/E of just 8.6. Read the Jan 2, 2009 analysis.