3. Orchids Paper Products ( TIS) makes paper towels and napkins.
The numbers: Third-quarter net income more than doubled to $3.8 million, or 52 cents a share. Revenue climbed 5% to $25 million. The company's gross margin jumped from 20% to 34%, and its operating margin widened from 10% to 23%. Orchids has a stable financial position, reflected by its quick ratio of 3 and its debt-to-equity ratio of 0.4. The stock: Shares of Orchids Paper Products have more than doubled during the past year, outperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 11, a discount to household-product makers. Orchids Paper Products doesn't pay dividends.