6. Blackstone (BX) is an alternative-investment company, structured as a publicly-traded partnership, which invests roughly $104 billion, of fee-generating assets, in private equity, real estate and hedge funds.
The firm also has an advisory unit, offering merger and acquisition, restructuring and reorganization assistance. Goldman expects several of Blackstone's funds to surpass so-called high-water marks and to resume charging performance fees in 2011. It thinks funds could attract another $7 billion, to boot. The stock commands a discount forward P/E of 9.8.
5. Precision Castparts (PCP) makes metal components and castings, forgings and fasteners for aerospace and industrial companies. Precision has significant fixed-costs, so incremental volume bolsters profit margins significantly. The company beat Goldman's fiscal second-quarter sales forecast by 3.5%. It expects Precision's stock to advance 28% to $128 within the next 12 months. Precision commands a premium of 93% over its aerospace peers, based on cash flow per share. Still, 75% of analysts covering Precision rate it "buy."
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