BOSTON (TheStreet) -- Mid-cap stocks are a Goldilocks asset class. They offer the fast growth of small-cap stocks, but also the safety of large-caps. The following 10 mid-cap stocks rank as analysts' favorites. All are expected to post double-digit percentage gains in the next 12 months. Below, they are ordered by projected return, from big to biggest.
is an investment-management firm with boutique subsidiaries.
Third-quarter net income surged 91% to $34 million, but earnings per share climbed a more modest 63% to 65 cents. Revenue grew 63% to $354 million. The operating margin contracted from 29% to 28%. The stock trades at a forward earnings multiple of 12, a 35% discount to the industry average. All 11 analysts following Affiliated advise purchasing its stock.
expects Affiliated Managers' shares to appreciate 20% to $106.
sells chemicals and plastics.
Third-quarter profit soared 68% to $170 million, or $2.33 a share, as revenue increased 29% to $1.7 billion. The operating margin widened from 14% to 16%. Eastman's stock sells for a forward earnings multiple of 10, a book value multiple of 3.2, a sales multiple of 0.9 and a cash flow multiple of 15, 42%, 14%, 66% and 23% discounts to chemicals peer averages. Of researchers following Eastman, nine rate its stock "buy" and one rates it "hold." None rank it "sell." Eastman offers a 2.2% dividend yield.
offers a target of $100, suggesting Eastman will rise 26%.
sells intimate apparel, sportswear and swimwear under the Chaps, Calvin Klein and Speedo brand names.
Second-quarter net income jumped 69% to $30 million and earnings per share rose 58% to 65 cents. Revenue grew 14%. The operating margin extended from 9.3% to 11%. Warnaco's stock trades at a forward earnings multiple of 13, a book value multiple of 2.6 and a cash flow multiple of 8.3, 30%, 39% and 52% discounts to apparel peer averages. Roughly 86% of analysts rate the stock "buy."
predicts that Warnaco's stock will advance 16% to $61.
makes and sells industrial machinery, and related parts and services.
Its third-quarter profit more than doubled to $47 million, or 88 cents a share, as revenue gained 15% to $493 million. The operating margin widened from 11% to 14%. Gardner's stock sells for a trailing earnings multiple of 20, a forward earnings multiple of 15 and a book value multiple of 2.6, 16%, 22% and 26% discounts to machinery industry averages. Seven analysts rate the stock "buy" and one rates it "hold." No researchers rank the shares "sell."
BB&T Capital Markets
offers a target of $70, implying 19% of upside.
manufactures gaming machines and video-lottery terminals.
Its fiscal first-quarter profit declined marginally to $20 million, or 33 cents a share, but revenue stretched 13% to $188 million. The operating margin narrowed from 19% to 18%. WMS's stock trades at a forward earnings multiple of 16 and a book value multiple of 2.9, 41% and 53% discounts to leisure peer averages. It's fairly valued based on sales and cash flow. Of researchers following WMS, 15 rate its stock "buy" and three rate it "hold." None rank it "sell."
predicts that WMS's shares will appreciate 27% to $55.
Third-quarter profit increased 49% to $155 million, or 84 cents a share, as revenue ascended 4.8%. The operating margin remained steady at 21%. Wyndham's stock sells for a trailing earnings multiple of 15, a forward earnings multiple of 14, a book value multiple of 1.8, a sales multiple of 1.3 and a cash flow multiple of 8, 55%, 50%, 72%, 57% and 35% discounts to industry averages. Nine of the 10 analysts following Wyndham rate its stock "buy." A median price target of $34.86 implies 17% upside.
forecasts that Wyndham's shares will advance 32% to $40.
makes batteries, flash lights and personal products, including Schick razors.
This week, it reported fiscal fourth-quarter results. Its stock dropped 10% as the company posted adjusted earnings of 81 cents, missing the consensus estimate of 95 cents. Energizer missed on the top-line by 5%. Still, sales were up year-over-year. Energizer's stock trades at a forward earnings multiple of 12, a book value multiple of 2.6, a sales multiple of 1.2 and a cash flow multiple of 7.6, 24%, 70%, 43% and 38% discounts to household products industry averages.
BMO Capital Markets
offers a target of $90, suggesting 37% upside.
( SOA) makes chemicals and engineered materials for industrial markets.
Third-quarter net income gained 66% to $48 million, but earnings per share rose a more modest 46% to 38 cents. Revenue grew 17% to $511 million. The operating margin dropped from 22% to 18%. Solutia's stock sells for a forward earnings multiple of 11, a sales multiple of 1.2 and a cash flow multiple of 8.7, 40%, 56% and 54% discounts to peer averages. Six researchers rate Solutia's stock "buy" and one rates it "hold." None rank Solutia's shares "sell."
expects Solutia's stock to climb another 28% to $24.
Allied Nevada Gold
is a gold producer with properties and projects in Nevada.
It is scheduled to report third-quarter results Friday. Allied swung to a second-quarter profit of $21 million, or 26 cents a share, from a loss of $6.9 million, or 12 cents, a year earlier. Revenue multiplied to $37 million. The operating margin climbed into positive territory. Allied's stock trades at a premium to metals and mining peer averages based on all valuation metrics. Still, nine of the analysts following its stock advise purchasing and one says to hold.
forecasts that Allied's stock will rally 47% to $37.02.
R.R. Donnelley & Sons
provides printing, logistics and outsourcing services.
Donnelley is reporting third-quarter results today. Its second-quarter profit more than tripled to $89 million, or 42 cents a share, as revenue inched up 2.2% to $2.4 billion. The operating margin remained steady at 7.9%. R.R. Donnelley's stock sells for a forward earnings multiple of 9.6, a book value multiple of 1.8 and a cash flow multiple of 4.5, 52%, 40% and 66% discounts to industry averages. The stock offers an attractive dividend yield of 5.5%.
offers a price target of $30, suggesting a 12-month return of 59%.
-- Written by Jake Lynch in Boston.
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