BOSTON ( TheStreet) -- Goldman Sachs (GS) updated its Conviction Buy List, a compilation of the Wall Street bank's favorite U.S. stocks, for 2011. Investors ought to review the following 10 picks, which offer the greatest 2011 upside potential, according to Goldman. Below, the stocks are ordered by return potential, from plenty to most.
10. Digital Realty Trust (DLR) is a data-center real estate investment trust, or REIT.
Goldman initiated coverage of this sub-industry in December with "favorable outlook" due to cloud-driven demand. It expects data-center REITs to generate the best profit growth among real estate stocks over the next few years. Digital Realty is Goldman's favorite stock in the group due to recent underperformance. Digital Realty missed third-quarter consensus earnings by 0.8% and its stock corrected 4.7%. Still, 65% of Wall Street analysts rate the REIT "buy."
9. Crown Castle (CCI) owns, operates and leases wireless communications towers. Recent lease modifications with carriers, including AT&T (T), are expected to bolster 2011 revenue. Given the company's history of exceeding rental revenue guidance, Goldman is bullish on the company's growth prospects and is forecasting rental revenue 2% above the top threshold of management's guidance and 77 cents of earnings in 2011. Its $54 target was derived by combining free and discounted cash-flow analyses, implying 24% upside.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV