(MONEY Magazine) – RENAL CARE GROUP A long-term prescription for kidney patients

Business: Renal Care Group provides dialysis and other services to 14,000 patients in 22 states through its own outpatient clinics and hospital affiliations.

Opportunity: Since its IPO in 1996, the company has consistently beat analysts' earnings expectations, and the demand for kidney treatment is increasing with an aging population. The stock was unduly dragged down in February when rival Total Renal posted low earnings. But Renal Care's operating profits were up 78% in 1998, and recent acquisitions are expected to add $55 million to 1999 revenues.

Risk: Medicare politics may affect payments for 59% of its patients. --KEVIN MAX

TOY HEADQUARTERS In search of hit software for game players

Business: Toy Headquarters develops interactive software for Nintendo, Sony PlayStation, Game Boy and PC platforms.

Opportunity: Record sales and profits in 1998 (sales rose 141%) were propelled by bestsellers such as WCW/NWO Thunder for wrestling fans and Rugrats: Search for Reptar for young children. After losing the licensing rights to World Championship Wrestling games, management signed a 10-year deal with rival World Wrestling Federation. Another key tie-in: the release of Star Wars' Yoda Stories for Game Boy this spring.

Risk: Developing games for new platforms is costly; sales can vary widely title to title --K.M.

LABOR READY Supplying temps for a tight job market

Business: Labor Ready is the country's leading provider of temporary manual laborers to builders and light industry, with 598 dispatch offices in 46 states.

Opportunity: Revenues surged 81% to $607 million in 1998 as the need for temp workers, especially in booming housing markets, surged with the economy. There's more expansion ahead in '99, as the company will add 200 offices (which have low overheads) and expects sales to reach $884 million.

Risk: Revenues are closely tied to the cyclical construction and landscaping industries. Laborers often take full-time positions while on the job. --K.M.