BOSTON (TheStreet) -- Barrington Research's list of Best Ideas for 2011, which includes stocks like Sirius XM (SIRI) and Imax (IMAX), could see picks rise up to 67% this year based on the firm's expectations.Investors may not be as familiar with Chicago-based Barrington Research as they are with Goldman Sachs or Barclays, but the firm's Best Ideas List outperformed several key benchmarks in 2010, the first year of its existence. For the full year, Barrington's best stock picks were up 35.3%, outpacing gains on the S&P 500 (12.8%), the S&P Small Cap 600 (25%) and the Russell 2000 (25.3%). Barrington's list is updated quarterly and represents analysts' top picks for the coming 12 months. It is currently composed of 14 stocks with an average market cap of $1.5 billion and median market cap of $800 million. There are six small-caps, five mid-caps and two large-cap names that make the list. Sirius XM was the firm's top-performing stock for 2010, rising 172%, along with Imax, which came in third with a 60% gain. AtriCure ( ATRC) rounds out the top three stocks for last year with a 97% gain. These three names remain on Barrington's Best Ideas List for this year. The latest overhaul saw six stocks banished from the list, including Archipelago Learning ( ARCL), Bottomline Technologies ( EPAY), Nordson ( NDSN), NuVasive ( NUVA), Patterson Cos. ( PDCO), and Walgreen ( WAG). Barrington said it still maintains outperform ratings on the six stocks. The 14 stocks on Barrington's list are arranged below in order of potential upside, based on the firm's 12-month price target.
Sirius XM Radio ( SIRI) Company Profile: Sirius XM provides music and talk radio entertainment through satellite transmissions. Current Share Price: $1.71 (Jan. 4) Potential Upside: 13% based on a price target of $1.85 Barrington's Take: The best-performing stock for Barrington carries over into 2011, with the firm noting fundamental improvements for Sirius XM, including trends in auto volumes. "While these gains did not dramatically improve our profitability outlook for 2010 (due primarily to associated subscriber acquisition costs), they should set the stage for further upside in 2011 and beyond," Barrington analysts wrote. "Interest in this story should continue to improve as management continues to deliver on its financial and operational metrics, demonstrating that the substance of the turnaround story is real."
Imax ( IMAX) Company Profile: Imax is an entertainment technology company, specializing in motion picture technologies and large-format motion picture presentations. Current Share Price: $27.76 (Jan. 4) Potential Upside: 14% based on a price target of $32 Barrington's Take: Imax was one of the Barrington's best performing picks in 2010, and the firm still sounds optimistic on the company's future prospects. "Over time, film slate issues are transient, and we do not feel that changes in the content distribution system will derail the opportunity IMAX holds in capitalizing on its ability to deliver a premium entertainment experience at price levels core audiences appear to view as reasonable," Barrington analysts wrote.
Modine Manufacturing ( MOD) Company Profile: Modine Manufacturing is engaged in thermal management technology, serving the vehicular, industrial, commercial, building HVAC (heating, ventilating and air conditioning) and fuel cell markets. Current Share Price: $17.12 (Jan. 4) Potential Upside: 29% based on a price target of $20 Barrington's Take: Modine Manufacturing is added to Barrington's best picks for 2011 based on the firm's investment thesis that the company is "an attractive turnaround-value story due to management's actionsto improve profits." "As a result of the combination of a lower cost structure and recovering markets, MOD should have an explosive 2011-2013
Navistar International ( NAV) Company Profile: Navistar produces International brand commercial and military trucks, MaxxForce brand diesel engines, IC Bus brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse brand chassis. Current Share Price: $56.61 (Jan. 4) Potential Upside: 30% based on a price target of $75 Barrington's Take: Navistar remains a top pick for Barrington "due to the company's low valuation relative to the expected growth rate in commercial vehicles." "We believe that the arrival of the Navistar MaxxForce 15L engine including EPA 2010 certification could be a near-term catalyst for the stock," Barrington wrote.
OraSure Technologies ( OSUR) Company Profile: OraSure Technologies develops, manufactures and markets oral fluid diagnostic products and specimen collection devices. Current Share Price: $6.06 (Jan. 4) Potential Upside: 39% based on a price target of $8 Barrington's Take: OraSure gets selected for addition to Barrington's Best Ideas List as the company "offers investors an aggressive growth opportunity following the culmination of over four years of very heavy R&D investment totaling over $56 million." "We believe these shares will soon start reflecting the value of the company's new product pipeline as investors gain confidence in the company's progress toward obtaining FDA approval for its key new products," Barrington analysts wrote.
Echo Global Logistics ( ECHO) Company Profile: Echo Global Logistics is a provider of technology-enabled business process outsourcing, serving the transportation and logistics needs of its clients. Current Share Price: $11.78 (Jan. 4) Potential Upside: 50% based on a price target of $18 Barrington's Take: Barrington still has love to Echo Global Logistics because of the company's ability to drive market share, revenue and earnings growth. "Echo stands out as the fastest growing company on every measure in its sector and is one of the best positioned publicly traded third-party logistics (3PL) companies to benefit from an eventual economic recovery, which we expect to materialize in the second half of 2011," Barrington analysts wrote. "Echo offers investors an appealing long-term growth story while trading at an attractive valuation, in our view."
PRGX Global ( PRGX) Company Profile: PRGX Global provides recovery audit services to businesses and government agencies having numerous payment transactions. Current Share Price: $6.40 (Jan. 4) Potential Upside: 58% based on a price target of $10 Barrington's Take: PRGX Global is another new addition to Barrington's top picks, as the company "offers investors an appealing long-term growth story and is trading at an attractive valuation, in our view." The firm notes PRGX Global's new strategy. "PRGX launched a new growth strategy in 2009, expanding on its leadership position in retail recovery audit to include non-retail, healthcare and business analytics and advice," Barrington analysts wrote. "To that end, the company is investing an additional $20 million in the business throughout 2010 and the first half of 2011, which is impacting profitability in the near term but will begin to yield a return in the coming (2011) year."