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 -- 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 $50 million to $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.
Aceto (ACET - Get Report) engages in sourcing, quality assurance, regulatory support, marketing and distribution of chemically derived pharmaceuticals, biopharmaceuticals, specialty chemicals and crop protection products. We have rated it a buy since August 2008. Our rating is based on a variety of strengths, including the company's impressive record of EPS growth and its largely solid financial position.For the fourth quarter of fiscal 2008, Aceto announced quarterly sales of $104.7 million, an increase of 20.1% year over year and its second consecutive quarter of record quarterly sales results. Fourth-quarter revenue rose by 20.1% compared with the same quarter a year ago. This growth appears to have helped boost EPS, which improved from 17 cents in the fourth quarter of fiscal 2007 to 32 cents in the most recent quarter. This continued a pattern of positive EPS growth demonstrated by Aceto over the past two years. Net income also increased significantly in the fourth quarter, rising 89.7% compared with the same quarter last year.