Each business day, 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 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.
Cam Commerce Solutions
, which engages in the design, development, marketing, installation and servicing of integrated retailing and payment processing for brick-and-mortar and e-commerce businesses, has been rated a buy since December 2005.
The company has demonstrated a pattern of positive EPS growth over the past two years, and this trend is expected to continue. Fourth-quarter revenue grew by 31% over a year ago to $9.2 million. Earnings more than doubled to $1.6 million or 38 cents a share.
Powered by the strong earnings growth and other important driving factors, this stock has gone up 62.7% in the 12 months prior to Dec. 14. While any stock can fall in a major bear market, in almost any other environment, Cam Commerce should continue to move higher. Although the company may harbor some minor weaknesses, they are unlikely to have a significant impact on results.