BOSTON ( TheStreet) -- The JPMorgan Focus List includes 13 stocks, expected to deliver annualized gains in excess of 20%. Picks 13 to 11, based on return potential, are Knightsbridge Tankers (VLCCF), TreeHouse Foods (THS) and CME Group (CME). Now, here is a look at the bank's 10 top stock picks for 2011, ordered by upside.
10. U.S. Steel (X) manufactures flat-rolled steel and tubular products. JPMorgan believes that "X marks the spot for the best leverage to an eventual steel demand recovery" because of iron ore integration and export potential. U.S. Steel's stock rose 1.6% last year. JPMorgan expects a 2011 rebound.
The company has grown sales and net income 35% and 41% in the past 12 months. Despite historically low inventories, steel buyers remain cautious, according to JPMorgan. The bank recently cut its target and fourth-quarter earnings projection, but remains optimistic about the 12-month return potential in this historically undervalued name.