25 of 40
BACK NEXT
SMALL WONDERS: Adtran
Ticker: ADTN
Market cap (billions): $1.5
P/E ratio*: 22
Return on assets: 15%
Free cash flow** (millions): $82

As the telecom industry switches to high-speed networks, Adtran's products will be in high demand. Revenue and earnings for the networking and communications equipment firm are expected to grow by an average of 9% and 13%, respectively, over the next three years.

Adtran also has the balance sheet to handle turmoil in the telecom sector. Though it carries $50 million in debt, that is more than offset by $300 million in excess cash. And the company generates a lot of free cash flow.

NEXT: SMALL WONDERS: AVX
Last updated June 20 2008: 2:35 PM ET
Criteria include market capitalizations between $250 million and $2.5 billion, at least 8% return on assets, positive free cash flow, and share price no more than $35.
*Based on previous 12-months' reported earnings.
**Latest fiscal year.
Source: Value Line; Zacks Investment Research
Fortune 40: Full list A complete list of all 40 stocks, with live financial data. (more)
Ultimate mutual fund portfolioIf you crave diversification, stability, and results - but you'd rather leave the hard work to a savvy pro - this collection is for you. (more)
6 real estate bargains The housing downturn's upside? You don't have to go overseas anymore for your dream retirement home. We found the six best markets for deals. (more)
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.