Top Five Small-Cap Stocks

Each week, TheStreet.com Ratings compiles a list of the top five stocks in five categories -- fast-growth, all-around value, large-cap, mid-cap and small-cap -- and publishes these lists in the Ratings section of our Web site.

This list, last updated Nov. 23, is based on data from the close of the previous trading session. Today, small-cap stocks are in the spotlight. These are stocks of companies that have market capitalizations of between $50 million and $500 million that rank near the top of all stocks rated by our proprietary quantitative model, which looks at more than 60 factors.

The stocks must also be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. They are ordered by their potential to appreciate.

Note that no provision is made for off-balance-sheet assets such as unrealized appreciation/depreciation of investments, market value of real estate or contingent liabilities that might affect book value. This could be material for some companies with large underfunded pension plans.

Today begins with CAM Commerce Solutions(CADA Quote), which engages in the design, development, marketing, installation and servicing of integrated retailing and payment processing for brick-and-mortar and e-commerce businesses. It has been rated a buy since November 2005.

Fiscal-year fourth-quarter net income increased 104% from a year ago to $1.6 million, or 38 cents a share, while revenue climbed about 32% to $9.2 million. The company has demonstrated a pattern of positive EPS growth over the past two years, and this trend is expected to continue. Powered by its strong earnings growth and other important driving factors, this stock has gone up in the last 12 months.

Naturally, any stock can fall in a major bear market. However, in almost any other environment, this stock should continue to move higher even though it has already enjoyed nice gains in the past year. Although the company may harbor some minor weaknesses, they are unlikely to have a significant impact on results.