Top Five Small-Cap Stocks

Boston Beer(SAM Quote), brewer of Sam Adams and other alcoholic drinks, has been rated a buy since August 2005. The company shows strong revenue growth and has no debt to speak of. It maintains a quick ratio of 2.75, which demonstrates the ability to cover short-term cash needs.

Boston Beer has shown a pattern of EPS growth over the past two years, and TheStreet.com Ratings expects this to continue into the year ahead. The company's earnings strength has elevated its stock price to a level that is somewhat expensive compared with the rest of its industry. Given its other strengths, the higher price level is justified. The positives also outweigh the company's weak operating cash flow.

Dawson Geophysical(DWSN Quote) provides onshore seismic data acquisition services to oil and gas companies. It has been rated a buy since August 2005. The company's revenue increased nearly 50% in the second quarter of 2007 compared with the same period last year, and it has no debt to speak of. Net income increased by 605.45% in that time frame, dwarfing the industry average.

Dawson has shown a pattern of EPS growth in the last two years, a trend that should continue. Powered by these strengths, Dawson's stock price has grown by 127.64% in the 12 months prior to Aug. 3, making it relatively expensive compared with others in its industry. TheStreet.com Ratings believes the company's strengths justify its higher price level.