5. Metals USA Holdings ( MUSA) is engaged in providing processed carbon steel, stainless steel, aluminum, red metals and manufactured metal components. The company operates through three main groups: plates and shapes, flat-rolled and non-ferrous, and building products group.

For the latest fourth quarter, net sales increased by 32% to $323.9 million with shipments 22% higher as compared to the year-ago market. For full-year 2010, net income more than tripled to $11.5 million from $3.5 million in 2009. Heading into 2011, the company says that the benefit of the steel price increases by several mills during the past few months will be reflected in the revenue of first quarter2011.

The company recently closed the acquisition of The Richardson Trident - its third and largest acquisition since its IPO last April. With this acquisition, Metals USA seeks to expand into desired target markets in the Southeast, South central, Northeast and the West Coast of the U.S. and in sectors such as aerospace, defense, transportation, and oil and gas field services. Trident's high EBITDA margin could push overall MUSA's EBITDA margin higher and prove accretive to its results, as the acquisition is an attractive valuation on a cycle average basis.

Of the nine analysts covering the stock, 67% recommend a buy while the remaining rate a hold. There are no sell ratings on the stock. The stock's average 12-month price target is $20.3, which is 30% higher than the current price, as per analysts surveyed by Bloomberg.

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