15. InnerWorkings ( INWK) Company Profile: InnerWorkings is a provider of managed print services to corporate clients across a range of industries. Current Share Price: $9.76 Potential Upside from Dec. 31: 18% based on a price target of $11 Barrington's Take: After a 46% rally in 2011, InnerWorkings remains on the Best Ideas List for 2012 as "there is still substantial upside potential for the stock in 2012 based on continued business momentum." "Due to its value proposition of cost savings and greater efficiency, we believe InnerWorkings remains positioned to perform well in a low growth economic environment," the Barrington analysts write. "We continue to recommend purchase of InnerWorkings based on its market leading technology and service offerings, its first mover advantage and strong competitive positioning, and its low penetration of a large market opportunity."
13. TriMas ( TRS) Company Profile: TriMas is a manufacturer of engineered and applied products, with its businesses divided among packaging, energy, aerospace and defense, and engineered components. Current Share Price: $19.27 Potential Upside from Dec. 31: 28% based on a price target of $23 Barrington's Take: TriMas is another new addition to this year's list of Barrington's best stock picks as the company's management "has done an excellent job positioning the company for higher sales growth and profitability." "We believe that management will continue to take strategic actions to the operations, which should lead to higher returns," the analysts wrote. "Favorable end markets including energy and aerospace should results in a cyclical sales upturn."
11. 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: $23.48 Potential Upside from Dec. 31: 30% based on a price target of $30 Barrington's Take: The firm says Bridgepoint Education remains a top pick for 2012 for the same reasons Barrington selected the stock in 2011, namely a discount valuation, a positive secular growth story, experienced management team, a scalable business model and a solid balance sheet. "BPI's stock should continue to outperform going forward, with the catalyst being continued stronger results (relative to the competition) and a return to new student starts growth in the first half of 2012," Barrington analysts write.
9. 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: $15.92 Potential Upside from Dec. 31: 36% based on a price target of $22 Barrington's Take: Even after a 32% rally over the past year, Barrington analysts are still fans of Echo Global as the company's "technology offerings are a competitive differentiator that will enable the company to gain further share of a large and underpenetrated market opportunity." "Echo Global Logistics should continue to grow substantially faster than the industry due in part to its differentiated technology and highly scalable business model, in our opinion," the analysts write. "Our investment thesis is largely based on Echo's ability to rapidly take share of a large market opportunity, which has enabled the company to post strong growth through adverse and less than robust economic conditions."
7. PRGX Global ( PRGX) Company Profile: PRGX Global provides recovery audit services to businesses and government agencies having numerous payment transactions. Current Share Price: $6.15 Potential Upside from Dec. 31: 51% based on a price target of $9 Barrington's Take: Barrington says that after eight consecutive quarters of year-over-year revenue growth, PRGX "is no longer a turnaround story but an emerging growth story," which is why it remains on the Best Ideas List. "That said, we expect 2012 to be even better as management continues to focus on execution," the analysts wrote. "We believe it is reasonable that a well-capitalized, unique business services company like PRGX Global, assuming the growth recovery continues, could be conservatively worth 6 8x forward EBITDA a year from now."
5. TNS ( TNS) Company Profile: TNS offers networking and data communications to telecom firms and other companies in over 40 countries. Current Share Price: $17.67 Potential Upside from Dec. 31: 55% based on a price target of $27.50 Barrington's Take: TNS is a brand new addition to the Best Ideas List for 2012 as Barrington analysts say the company "is an appealing deep discount story with potential growth." "TNS sells at a significant discount valuation of 8.3x and 7.4x our adjusted 2012 and 2013 EPS estimates as well as at 5.5x and 4.9x our adjusted 2012 and 2013 EBITDA estimates, respectively," the analysts wrote. "As a result of this discount valuation, we believe that downside price risk in the shares is minimal."
3. Sirius XM Radio ( SIRI) Company Profile: Sirius XM provides music and talk radio entertainment through satellite transmissions. Current Share Price: $2.05 Potential Upside from Dec. 31: 65% based on a price target of $3 Barrington's Take: Despite the occasional correction in the stock, Barrington analysts note that Sirius XM has had very strong momentum over the past two years. "Upside remains, though not to the degree enjoyed by those willing to take on the significant risk as the stock bounced off the bottom," the analysts write. "The investment focus has shifted to fundamentals since the company's brush with bankruptcy. Improvements include positive, if choppy, trends in auto volumes, the potential for price increases and the chance to return cash to shareholders out of rising free cash flow."
1. Imax ( IMAX) Company Profile: Imax is an entertainment-technology company, specializing in motion-picture technologies. Current Share Price: $20.89 Potential Upside from Dec. 31: 80% based on a price target of $33 Barrington's Take: Imax remains on the Best Ideas List thanks to "an appealing long-term growth story as management executes its footprint expansion program both domestically and internationally," Barrington analysts write. "Imax is still relatively early in its growth overseas, and international agreements continue to be struck with frequency," the analysts add. "Footprint expansion is vital to longer term growth, but the next stage in ensuring success is in selecting a film slate that makes most effective use of the growing Imax platform."