In Upside, 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 (NASDAQ: VRAD) earns the Quadrix systems 'best buy rating' and is the advisor's favorite investment pick for the coming year.

"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."

Editor note: On Thursday (January 14), Horizon Publishing editors Richard Moroney and Chuck Carlson will be conducting a free online virtual conference to discuss their favorite stocks and strategies for the coming year.

The conference is free with no obligation. Register at www.horizoninvestment.com/seminar.asp, or call Horizon Investment Services at 1-800-711-7969 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .