Each weekday, TheStreet.com Ratings compiles a list of the top 10 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, updated daily, is based on data from the close of the previous trading session. Today, we look at small-cap stocks. 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 62 factors.
In addition, the stocks must be followed by at least one financial analyst who posts estimates on the Institutional Brokers' Estimate System. The stocks are ordered by their potential to appreciate.
Up first today is
Preferred Bank of Los Angeles
, which has 10 full-service branches focused on California's large Chinese-American population. The company's stock has earned a buy rating since December 2005. The stock should outperform the majority of stocks we rate on the basis of its steady EPS growth, positive increases in net income, compelling return on equity and solid stock performance.
The stock is relatively more expensive than its peers. However, Preferred Bank shows no glaring weaknesses, and its strong financial performance justifies its higher price level.
is a distributor of wireless products. It has been rated a buy since December 2004. Among the company's strengths are notable return on equity, good cash flow from operations, impressive stock-price performance and net income growth. Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, as the stock has been outpacing the
over the past year.
These strengths overcome the company's low profit margins and give it considerable upside potential.
, the parent company of Vancouver-based Riverview Community Bank, has been rated a buy since December 2004. The company's strengths include its notable return on equity, solid stock-price performance, impressive record of EPS growth and expanding profit margins.
Although the company may harbor some minor weaknesses, we believe they are unlikely to have a significant impact on results.
provides same-day delivery and logistics services in the U.S. and Canada. It has been rated a buy since December 2004.
The company's strengths include its notable return on equity, revenue growth, largely solid financial position with a stellar debt-to-equity ratio, solid stock-price performance and impressive record of earnings-per-share growth.
The company's revenue growth has slightly outpaced the industry average, and it appears to have trickled down to the company's bottom line, improving the earnings per share. Dynamex's s debt-to-equity ratio is very low at 0.05 and is currently below the industry average, implying that there has been very successful management of debt levels. TheStreet.com Ratings believes that these strengths outweigh the company's low profit margins.
( OYOG) designs, manufactures and sells seismic data equipment and has had a buy rating since February 2006. The company shows a convergence of positive factors, including robust revenue growth, expanding profit margins, commendable return on equity and a notable record of EPS growth. The net income growth for Oyo has significantly exceeded that of the electronic equipment and instruments industry average, but is less than that of the S&P 500. The company's gross profit margin is strong, as is net profit margin, which significantlyoutperformed the industry average.
Even though the company's stock is trading at a premium valuation according to our review of its current price compared to earnings and book value, its sturdy financials deserve a sustained buy rating.
, which provides telecommunications services in the Caribbean and North America, has been rated a buy since January 2005.
TheStreet.com Ratings' positive outlook on the stock is primarily influenced by the company's stellar revenue growth, reasonable debt levels and increased net income growth. Though the company may have a few minor weaknesses, they are unlikely to affect its results in the foreseeable future.
( ENSI), a holding company concentrated on the purchase, distribution, storage and transportation of natural gas in southwest Alabama, has been rated a buy since December 2004. Its strengths include strong net income growth, a reasonable debt-to-equity beneath that of the industry average, and remarkable stock price growth. Its stock price surged in 2006, making it more expensive relative to its peers, but given its performance, the higher price is justified.
Though EnergySouth shows a poor operating cash flow, its overall financial strengths outweigh its weaknesses, and the stock merits a buy rating.
markets and licenses the Cherokee, Sideout and Carole Little brands -- as well as related trademarks and other brands it owns or represents -- for family apparel, fashion accessories and footwear, home furnishings and recreational products. It has been rated a buy since December 2004.
The company's strengths include notable return on equity, a largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock-price performance. TheStreet.com Ratings believes these strengths outweigh the company's weak operating cash flow.
develops software and builds wireless control devices and chips principally for home entertainment equipment and the subscription broadcasting market. It has been rated a buy since February 2005.
The company's strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, an impressive record of EPS growth and solid stock-price performance. TheStreet.com Ratings believes these strengths outweigh the company's weak operating cash flow.
Rated a buy since December 2004,
( RVSN) designs, develops and supplies products and technology used in real-time video, voice and data communications. The company's wide ranges of strengths -- reasonable valuation levels, impressive return on equity and extraordinary stock price performance -- outweigh the company's subpar net income growth.