5 small stocks to bank on

3 of 5

Natus Medical (BABY)

Small-cap growth stocks are a bargain, says John McCraw, manager of Nicholas-Applegate U.S. Micro Cap in San Diego. Among the FSB 100, he likes Natus Medical (No. 26), specializing in hospital equipment. It buys companies, then "leverages its own distribution and salesforce to grow," McCraw says.

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From the July/August 2008 issue of Fortune Small Business. Stock picks are valid only as of that date.

LAST UPDATE: Jun 23 2008 | 10:43 AM ET

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