BOSTON (TheStreet) -- Goldman Sachs (GS) has added 19 stocks to its Conviction Buy List in 2011 and removed others. For investors willing to go against the grain and buy stocks in a down market, the global investment bank's picks may offer substantial upside. Of those 19 new Conviction Buys, the following eight offer the most potential, based on current price targets. Each is expected to rise at least 20% and as much as 36% in the next 12 months.
8. Buckeye Partners (BPL) is an oil-and-gas storage and transportation company. It is structured as a master limited partnership, a unique corporate structure that's required to pay the majority of its cash flow to shareholders in exchange for preferential tax treatment. Buckeye owns a pipeline for refined petroleum products spanning 5,400 miles in the eastern and mid-western U.S. Its stock has fallen 5.4% in 2011. It pays a quarterly distribution, taxed differently than a qualified dividend, of 99 cents, converting to an annualized yield of 6.3%.
Buckeye's adjusted fourth-quarter earnings rose 51% to 66 cents, missing analysts' consensus target by 31%. Sales, up 75%, beat consensus by an impressive 55%. Buckeye's stock sells for a forward earnings multiple of 17, a 19% premium to its oil-and-gas peer average. Of analysts covering the equity, four, or one third, advise purchasing it and eight advise holding. None advocate selling. Goldman expects the stock to rise 20% to $76. Barclays ranks Buckeye "equal weight", expecting it to appreciate to $71. Deutsche Bank rates it "hold", predicting a drop to $60.
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
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
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
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 + 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