following five conviction buys offer the most return potential of the 58 stocks on the list. Below, the stocks are ordered by potential upside, based on Goldman's price targets. Here's a closer look at fundamentals.
5. Hornbeck Offshore Services ( HOS) is an offshore drilling services company, providing offshore supply vessels, multi-purpose support vessels and on-shore logistics services. Its stock has gained 21% in the past 12 months, but has fallen 11% in the past four weeks. The company posted a first-quarter loss of 34 cents a share, missing Goldman's target for a 12-cent loss and disappointing investors. Underutilization of the multi-purpose fleet hampered results. Despite lowering its 2011 earnings and EBITDA forecast, Goldman is still exceptionally bullish on Hornbeck's shares. Cutting its outlook to a fiscal-year loss of 68 cents, from its prior forecast of a 21-cent profit, Goldman expects the company to earn $3.42 a share by 2013, higher than its previous estimate. Goldman calls the recent sell-off "an attractive buying opportunity" and noted that its call was "never based on a quick snap-back in activity," but a longer-term production rebound. Goldman expects a strong turnaround in offshore drilling in the Gulf and forecasts 25 rigs will be working in the region by mid-2012, bringing Hornbeck's EBITDA to $242 million. Goldman expects the stock to rise 40% to $36 during the next six months, a short investment horizon.