Small-Cap Spotlight: Shaw

In recent weeks, we've looked at some volatile and speculative plays for investors looking to take advantage of the compelling upside offered by small-cap stocks. Stocks such as Dendreon (DNDN Quote), Force Protection(FRPT Quote), Jones Soda (JSDA Quote) and Buffalo Wild Wings(BWLD Quote) all showcase a combination of risks and potentially huge earnings growth.

Today, we're looking at Shaw Group (SGR Quote), an established name in the relatively mainstream area of engineering and construction. Weighing in with a market cap around $3.5 billion, Shaw makes for an interesting alternative to larger competitors such as Fluor(FLR Quote) and Jacobs Engineering(JEC Quote). But with shares up almost 30% in the first half of 2007, is Shaw a smart play for small-cap investors, or should they look elsewhere?

Kusick: Growth Buyers, Come Forth

Since we started the weekly Small-Cap Spotlight feature here on TheStreet.com, we've looked at a lot of stocks where there's a major catalyst in the works that may or may not develop, with the uncertainty creating a lot of volatility in the share price.

Shaw Group is not one of these stocks. Instead, it boasts everything a growth-oriented investor should look for in a company: a high future growth rate, a catalyst to drive continued upside and an established track record with solid fundamentals.

Some readers may remember that Shaw was one of Jim Cramer's "Green Market" stocks earlier this year, on the basis of the company's exposure to nuclear power. Nukes have long been a dicey proposition for investment, but the answer is that environmental concerns have finally overtaken much of the stigma attached to nuclear power plants, and we are on the verge of seeing a long-term global boom in nuclear power plant construction.