Top Five Small-Cap Stocks

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.

Exponent EXPO is a science and engineering consulting firm whose multidisciplinary team of scientists, physicians, engineers, and business and regulatory consultants brings together more than 70 different technical disciplines to solve complicated issues facing industry and businesses. Its professional staff can perform in-depth scientific research and analysis or very rapid-response evaluations to provide clients with the critical information they need.

Exponent has been rated a buy since November 2001. An impressive record of earnings per share growth and compelling growth in net income are among several of the company's strengths. For the first quarter of fiscal 2008, revenue rose by 15.1% year over year. Net income for the same period increased by 25.6%, from $5.06 million a year ago to $6.35 million. Exponent reported that earnings per share improved 29.0% from 31 cents in the first quarter of 2007 to 40 cents in the most recent quarter. In fact, the company has demonstrated a pattern of positive EPS growth over the past two years. Finally, return on equity improved slightly when compared to the same quarter one year prior.