5. Summer Infant ( SUMR) sells children's health, safety and wellness products. During the past three years, Summer Infant has grown sales 95% annually, on average. Second-quarter net income advanced 33% to $2.2 million. Earnings per share climbed 18% to 13 cents. Revenue stretched 29% to $49 million. The operating margin tightened from 7.4% to 7%. Summer Infant holds $2.7 million of cash and $42 million of debt, translating to a debt-to-equity ratio of 0.6. Its stock sells for a forward earnings multiple of 12 and a book value multiple of 1.6, 36% and 59% discounts to industry averages. Its PEG ratio of 0.4 reflects a 60% discount to estimated fair value.

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