BOSTON ( TheStreet) -- These small-cap stocks were upgraded by TheStreet's equity model. Each has a small Wall Street following and has outperformed the U.S. stock market in 2010.

3. The model upgraded manufacturer and service provider Benchmark Electronics ( BHE) to "buy." Benchmark has appreciated 12% in 2010.

Quarter: Benchmark swung to a fourth-quarter profit of $17 million, or 26 cents a share, from a loss of $204 million, or $3.13, a year earlier. Revenue ascended 3.2% to $600 million. The operating margin inched up from 3.1% to 3.5%. Benchmark holds $421 million of cash and $12 million of debt.

Stock: Benchmark has soared 66% during the past year. The stock trades at a price-to-projected-earnings ratio of 15, a price-to-book ratio of 1.3 and a price-to-sales ratio of 0.7, 29%, 46% and 72% discounts to peer-group averages. It's also cheap based on sales per share.

Holders: No sell-side analysts cover Benchmark, which has a market value of $1.4 billion. During the fourth quarter, five of its 10 largest shareholders, including Bank of America ( BAC), decreased their holdings, while four, including State Street ( STT), amplified their bets. One top holder retained the size of its position.

2. The model upgraded Community Trust Bancorp ( CTBI), focused on Kentucky and West Virginia, to "buy." Community Trust Bancorp has rallied 20% in 2010.

Quarter: Fourth-quarter profit expanded 7.3% to $7 million, or 46 cents, as revenue climbed 4.9%. The operating margin extended from 30% to 38%. Community Trust Bancorp holds $142 million of cash and $275 million of debt, translating to a debt-to-equity ratio of 0.9.

Stock: Community Trust has declined 0.2% during the past year, underperforming benchmarks. It sells for a price-to-projected-earnings ratio of 15 and a price-to-cash-flow ratio of 12, 19% and 18% discounts to peer-group averages. It's fairly valued based on book value.

Consensus: Of analysts covering Community Trust, two advise purchasing its shares and two recommend holding them. Sandler O'Neill expects the stock to advance 6% to $31. Hilliard Lyons believes it was fully valued at $28. The stock pays a 4.1% dividend yield.

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