10 Small-Caps Expected to Rise Up to 71%

BOSTON (TheStreet) -- The Russell 2000 small-cap benchmark has rallied 8.5% in September. If the economy strengthens, small-cap stocks probably will outperform large-caps. Investors who are piling into bonds could miss out on major upside if fear subsides. Here are 10 small-cap stocks predicted to rise at least 52% in the next 12 months, based on median analysts' targets. They have market values between $500 million and $1.5 billion, and are ordered by expected return. 10. P.H. Glatfelter GLT makes and sells specialty papers and fiber-based products. Its second-quarter profit plummeted 99% to $100,000, or break-even per share, beating expectations for a $500,000 loss. Revenue increased 30% to $365 million. The operating margin turned positive. Glatfelter's stock trades at a trailing earnings multiple of 5.5, a forward earnings multiple of 9, a book value multiple of 1.1 and a cash flow multiple of 2.8 -- 83%, 64%, 21% and 59% discounts to paper products industry averages. Three out of four analysts rate it "buy." 9. MasTec MTZ is a specialty contractor of utility and communications infrastructure. Second-quarter profit decreased 23% to $15 million, or 18 cents a share, as revenue gained 28% to $495 million. The operating margin extended from 6.3% to 6.6%. MasTec's stock sells for a forward earnings multiple of 8.8, a book value multiple of 1.4, a sales multiple of 0.4 and a cash flow multiple of 7.5 -- 44%, 24%, 21% and 55% discounts to construction and engineering peer averages. Of analysts covering MasTec's stock, 11, or 79%, rate it "buy" and three rank it "hold." 8. Volterra Semiconductor VLTR designs analog and mixed-signal chips. Second-quarter profit rose eightfold to $9 million, or 34 cents a share, as revenue soared 77%. The operating margin stretched from 11% to 26%. Volterra's stock trades at a book value multiple of 4.3, a 22% discount to the semiconductor industry average. Its PEG ratio, a measure of value relative to predicted long-run growth, of 0.1 signals a 90% discount to estimated fair value. Of analysts following Volterra, 13, or 81%, advise purchasing its shares and three recommend holding them. To read the rest, head over to TheStreet.com