Last year in “Across the Street” we spoke to Charles Severson, manager of Baird MidCap (BMDSX). Concerned about a slowdown in global economic growth, Severson favored less cyclical businesses that generate most of their revenue in the US. This is how his two picks have fared:

Illumina (NSDQ: ILMN), the leading producer of high-speed gene sequencers, posted strong results in 2012. Sales rose 9 percent, to $1.06 billion, while earnings surged 74 percent from the previous year.

Revenue is expected to rise another 15 percent in 2013, helped by these two recent acquisitions: Verinata Health, a leading provider of non-invasive tests for early detection of fetal chromosomal anomalies; and Moleculo, which is compiling a DNA library for use in sequencing and analysis.

Illumina is spending about 15 percent of its revenue on R&D, a slight increase from the previous year.

Shares of Illumina have returned 88 percent since recommended.

Stericycle (NSDQ: SRCL), which disposes of medical waste, has been under pressure by some state regulators to reduce the pollution caused by its incinerators. However, the company continues to see strong growth in its top and bottom lines.

In 2012, revenue grew 14 percent to $19 billion, with acquisitions contributing about $140 million to growth. Earnings rose 13 percent to $857 million.

Stericycle has been able to expand its core business and make strategic acquisitions, which are expected to drive long-term growth. Continuing to sell at a premium to its industry, Stericycle stock is up 28 percent since recommended.