While Goldman Sachs is cautious on small-cap stocks due to valuation concerns, the firm still finds some pockets of opportunity among individual names within the group.
Goldman strategist David Kostin identified 25 small-cap stocks (companies with market capitalizations of less than $4 billion) that could offer at least a 25% upside to the Goldman price target over the next 12 months.
The list skews heavily toward consumer discretionary and tech stocks, including RetailMeNot Lumber Liquidators and Office Depot
Here’s a look at Goldman’s buy-rated Russell 2000 stocks that have significant upside over the next year.
| Agios Pharmaceuticals Inc. | AGIO | Health Care | 39 | 55 | 66 |
| Axiall Cop. | AXLL | Materials | -5 | 61 | 36 |
| Boise Cascade Co. | BCC | Materials | -12 | 38 | 47 |
| Cornerstone Ondemand Inc. | CSOD | Information Technology | -28 | 55 | 43 |
| Darling Ingredients Inc. | DAR | Consumer Staples | -7 | 25 | 29 |
| Granite Construction Inc. | GVA | Industrials | 1 | 47 | 35 |
| GT Advanced Technologies Inc. | GTAT | Information Technology | 64 | 22 | 54 |
| Infinera Corp. | INFN | Information Technology | -9 | 11.5 | 30 |
| Lumber Liquidators Holdings Inc. | LL | Consumer Discretionary | -47 | 77 | 40 |
| Marketo Inc. | MKTO | Information Technology | -33 | 41 | 64 |
| MGIC Investment Corp. | MTG | Financials | -8 | 11 | 42 |
| Nimble Storage Inc. | NMBL | Information Technology | -46 | 34 | 38 |
| NPS Pharmaceuticals Inc. | NPSP | Health Care | -11 | 40 | 48 |
| NuVasive Inc. | NUVA | Health Care | 0 | 43 | 32 |
| Office Depot Inc. | ODP | Consumer Discretionary | -5 | 7 | 40 |
| Polycom Inc. | PLCM | Information Technology | 12 | 16 | 27 |
| Proofpoint Inc. | PFPT | Information Technology | 1 | 42 | 26 |
| Qlik Technologies Inc. | QLIK | Information Technology | -21 | 28 | 33 |
| Radian Group Inc. | RDN | Financials | -8 | 18 | 39 |
| RetailMeNot Inc. | SALE | Consumer Discretionary | -17 | $44.00 | 85 |
| Ryland Group Inc. | RYL | Consumer Discretionary | -13 | 48 | 27 |
| Steven Madden Ltd. | SHOO | Consumer Discretionary | -9 | 46 | 37 |
| Synageva BioPharma Corp. | GEVA | Health Care | 10 | 126 | 78 |
| Universal Display Corp. | OLED | Information Technology | -16 | 44 | 52 |
| Vitamin Shoppe Inc. | VSI | Consumer Discretionary | -19 | 60 | 42 |