8. Chicago Bridge & Iron (CBI) is an engineering and construction company, focusing on infrastructure projects for oil-and-gas companies.
Goldman views it as a levered oil play. Crude oil is trading above $90 a barrel, currently, and demand is growing amid the global recovery. E&C backlogs are inflecting and Goldman expects investors to start paying higher multiples for stocks in the sector, with Chicago Bridge & Iron offering the most upside. Its stock trades at a forward P/E of 14 and a cash-flow multiple of 15, 34% and 35% peer discounts.
7. Sapient (SAPE) is a services company, selling advisory, analytics and consulting services to businesses and government agencies. It also operates technology outsourcing centers in India. Goldman has a $15.50 price target on the stock, suggesting an impending 12-month return of 27%. The stock returned 47% in 2010 and has delivered annualized gains of 11% since 2007. Sales and net income advanced 16% and 171% a year, on average, over that span. The stock trades at a forward P/E of 24, a 32% industry premium. The company has $187 million of net liquidity (total cash minus debt).
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV