STOCK PICKS: Top Five Small-Cap Stocks for Oct. 10

Dynamex(DDMX Quote) provides same-day delivery and logistics services in the U.S. and Canada. We have rated Dynamex a buy since April 2003. The company's strengths include its revenue growth, largely solid financial position, increase in net income, and growth in EPS.

For the fourth quarter of fiscal 2008, revenue increased by 9.6% year over year. This growth appears to have helped boost EPS, which improved 18.4%, from 38 cents in the fourth quarter of fiscal 2007 to 45 cents in the most recent quarter. Net income also increased, rising 12%. Dynamex has no debt to speak of and a quick ratio of 1.87, indicating that company is able to cover its short-term liquidity needs.

Management announced that its outlook for fiscal 2009 remains positive based on its most recent financial results. Although sales and net income per share are expected to be impacted by an anticipated decline in the Canadian dollar versus the U.S. dollar, the company announced that it expects year-over-year sales growth of 7.0% to 8.0% and net income in the range of $1.50 to $1.60 per fully diluted share. The company shows weak operating cash flow at this time, but we feel that the strengths detailed above outweigh any weaknesses.

National Research(NRCI Quote) assists the health care industry in the U.S. and Canada track performance at a variety of levels. The company provides survey-based services and develops tools that enable health care organizations to obtain performance measurement information. We have rated National Research a buy since November 2006. Our rating is based on a variety of strengths, including the company's expanding profit margins, good cash flow from operations, and largely solid financial position.