BOSTON ( TheStreet) -- Barrington Research has updated its market-beating list of Best Ideas for 2011, which includes stocks such as Sirius XM ( SIRI), Imax ( IMAX) and others it expects to rise up to 65%.Investors may not be as familiar with Chicago-based Barrington Research as they are with Morgan Stanley or Credit Suisse, but the firm's Best Ideas List outperformed key benchmarks in 2010, when it was first started. Barrington's list is updated quarterly and represents analysts' top picks for the coming 12 months. It is currently composed of 15 stocks with an average market value of $1.5 billion and median market cap of $800 million. Since inception on Jan. 1, 2010, Barrington's best stock picks have risen 44.5%, outpacing gains on the S&P 500 (18.9%) and the Russell 2000 (34.9%). That success continued in the first quarter, as the Best Ideas portfolio was up 6.8%, excluding dividends, better than the 5.4% rise on the S&P 500 but below the performance of the Russell 2000 (up 7.6%), on the same basis. At the top of the portfolio's best performers during the first quarter, Orasure Technologies ( OSUR) rallied 37%, Navistar International ( NAV) jumped nearly 20% and Copart ( CPRT) climbed 16%. On the downside, education stocks Grand Canyon Education ( LOPE) and Bridgepoint Education ( BPI) dropped 26% and 10%, respectively, after a stellar fourth-quarter run. The latest overhaul sees two additions to the list and one stock banished from the group. Orasure, which had been the best performer during the first quarter, was pulled after the departure of the analyst covering the stock. Barrington said it still maintains an "outperform" rating on Orasure, but that it is removing the stock from its list as a conservative move during the analyst transition period. The 15 stocks on Barrington's list are arranged below in order of potential upside, based on the firm's 12-month price target and the stock's closing price as of March 31.
Copart ( CPRT) Company Profile: Copart is a provider of online auctions in the U.S., Canada and the U.K. Current Share Price: $43.87 (April 11) Potential Upside from March 31: 3.9% based on a price target of $45 Barrington's Take: Copart again makes Barrington's list, although there isn't as much upside given the 15% rally in shares during the first quarter. Still, Barrington sees value in Copart thanks to brand-awareness initiatives the company has undertaken as well as new business due to a national contract with Allstate ( ALL). "Despite the gross margin headwind related to the Allstate contract and the potential impact of higher gas prices and miles driven and total losses, we believe CPRT's volume growth in the back half of
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: $67.50 (April 11) Potential Upside from March 31: 15.4% based on a price target of $80 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 the combination of NAV's new engine technology (EGR) and dealer focus on the large U.S. trucking fleets will help the company leverage a smaller cost base into higher profits," Barrington wrote. "In short, NAV's commercial vehicle operations are currently profitable at a low level of industry demand. We believe that a more robust 2011 truck recovery combined with stable market share should result in significantly higher operating profits."
AtriCure ( ATRC) Company Profile: AtriCure is a medical-device company that makes surgical ablation systems designed to create precise lesions, or scars, in heart tissue. Current Share Price: $12.67 (April 11) Potential Upside from March 31: 23% based on a $14 price target Barrington's Take: The research firm says AtriCure offers investors an "appealing long-term growth story and is trading at an attractive valuation. In our opinion, there are few companies in our medical-device universe that have greater percentage growth opportunities than ATRC, which is why ATRC remains on our Best Ideas List at this point."
InnerWorkings ( INWK) Company Profile: InnerWorkings is a provider of managed print services to corporate clients across a range of industries. Current Share Price: $7.97 (April 11) Potential Upside from March 31: 35.5% based on a price target of $10 Barrington's Take: InnerWorkings is the second of two additions to Barrington's Best Ideas List as the firm believes "current business momentum is strong and expect solid financial performance in 2011." "After some refinement of the company's business model, all three primary growth avenues for InnerWorkings (enterprise clients, transactional clients and M&A activity) are expected to contribute meaningfully to financial results in 2011 and beyond," the analysts wrote.
U.S. Auto Parts Network ( PRTS) Company Profile: U.S. Auto Parts Network is a distributor of aftermarket auto parts and accessories. Its products consist of body parts, engine parts, performance parts and accessories. Current Share Price: $8.01 (April 11) Potential Upside from March 31: 38% based on a price target of $12 Barrington's Take: U.S. Auto Parts Network was a new addition to Barrington's Best Ideas List in January and remains among the firm's best picks. "
Sirius XM Radio ( SIRI) Company Profile: Sirius XM provides music and talk radio entertainment through satellite transmissions. Current Share Price: $1.77 (April 11) Potential Upside from March 31: 46% based on a price target of $2.40 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. "Fundamental improvements that are underway, including improved, if choppy, trends in auto volumes, provide added opportunities for upside in the stock," Barrington analysts wrote. "One of the most impressive feats in this makeover process has been an ability to move from a 15% borrowing rate to rate levels in the 7-8% area over about a year and a half time span."
Bridgepoint Education ( BPI) Company Profile: Bridgepoint Education is a regionally accredited provider of post-secondary education services, which includes programs in the disciplines of business, education, psychology, social sciences and health sciences. Current Share Price: $17.02 (April 11) Potential Upside from March 31: 57.9% based on a price target of $38 Barrington's Take: The firm says Bridgepoint Education remains a top pick for 2011 for the same reasons Barrington picked the stock in 2010, namely discount valuation, strong fundamentals, experienced management team, a scalable business model and a solid balance sheet. "Despite certain other competitors in this sector reporting (and/or forecasting) negative new starts growth, BPI continues to post (and forecast) solid enrollment growth," Barrington analysts wrote. "Management expects full-year 2011 new student start growth compared to 2010 levels, despite regulatory changes which are scheduled to take effect during the year as well as internal quality initiatives, which were introduced in 2010 or are scheduled to be introduced in 2011.
PRGX Global ( PRGX) Company Profile: PRGX Global provides recovery audit services to businesses and government agencies having numerous payment transactions. Current Share Price: $6.28 (April 11) Potential Upside from March 31: 65% based on a price target of $10 Barrington's Take: PRGX Global was a new addition to Barrington's top picks in January. The research firm says PRGX "is no longer a turnaround story but an emerging growth story and we expect 2011 to be even better as management continues to focus on execution." "