Goldman Sachs's equity strategy team led by Robert Boroujerdi recently identified 11 small-cap stocks that offer a projected average upside to their price target of about 26%.
Small-cap stocks are defined as those with market values under $3.5 billion.
All of the picks are included on Goldman's exclusive America's Conviction List, a collection of analysts' 65 most highly recommended investment opportunities.
So far, 2012 has not been especially kind to small-cap portfolio managers.
"Despite one of the most conducive backdrops for stock selection in the last three years, only a quarter of managers are beating their benchmarks on a YTD basis," write the analysts.
Perhaps these stocks could help juice returns.
Basic Energy Services, Inc.
Ticker: BAS
Target Price: $15
Target Price Period: 6 months
Sector: Oil Services
Description: Oil is the major catalyst, but gas in the $3.50-$4.00/mcf range could help activity recover
quicker-than-expected.
Source: Goldman Sachs
Domino's Pizza Inc.
Ticker: DPZ
Target Price: $44
Target Price Period: 12 months
Sector: Restaurants
Description: International same restaurant sales growth has been extraordinarily stable with SSS positive
for over 70 straight quarters.
Source: Goldman Sachs
Lamar Advertising Co.
Ticker: LAMR
Target Price: $42
Target Price Period: 12 months
Sector: Media and Entertainment
Description: LAMR expects to receive an IRS ruling on its REIT election in 1Q13 which should drive re-
rating of the stock,
Source: Goldman Sachs
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