5 smart stocks from the fool

• Motley Fool: 3 stocks on our radar

If you suffer a severe wound, you're not going to forgo treatment because we're in a recession. Kinetic Concepts prospers by renting its vacuum-assisted wound therapy devices to hospitals around the world and selling patented bandages. The company is growing despite the slump -- with 16% to 20% annualized free cash flow growth expected through 2013 -- and paying down debt with its prodigious profits. It's a defensive healthcare stock should the recession linger, but Kinetic will also benefit in an economic recovery, making it an all-weather choice. The final sales point: With a market cap of $1.9 billion, the stock trades at seven times management's earnings guidance for the year.

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