10 Top-Ranked Stocks with Big Upside

BOSTON (TheStreet) -- The S&P 500 Index has rallied 5% in September as improving economic data reassured investors. The long fixed-income, short-stocks trade appears to be unwinding. Individual investors that need equity exposure should consider the following 10 stocks; they get the highest aggregate ratings from analysts and are expected to make big gains in the weeks ahead. They are ordered by sentiment, from bullish to most bullish. 10. G-III Apparel

designs outerwear and sportswear apparel. G-III swung to a fiscal second-quarter profit of $3 million, or 16 cents a share, as revenue grew 39%. The operating margin turned positive. G-III's stock trades at a trailing earnings multiple of 12, a forward earnings multiple of 10 and a book value multiple of 2.4 -- 36%, 39% and 32% discounts to peer averages. Its PEG ratio, a measure of value relative to predicted long-run growth, is 0.3, signaling a 70% discount to fair value. Piper Jaffray

expects the stock to gain 34%, to $40. 9. Magellan Health Services

is a managed health care company. Second-quarter profit nearly doubled to $35 million, or $1.05 a share, as revenue increased 17%. The operating margin rose to 8.2% from 4.7%. Magellan's stock sells for a trailing earnings multiple of 12, a book value multiple of 1.6 and a cash flow multiple of 5 -- 21%, 35% and 43% discounts to health care industry averages. Its PEG ratio of 0.5 signals a 50% discount to fair value. Barclays

forecasts that the stock will advance 22%, to $56. 8. AboveNet

sells high band-width connectivity services to companies. Second-quarter profit fell 34%, to $16 million, or 62 cents a share, as revenue gained 14%, to $101 million. The operating margin rose to 28% from 26%. AboveNet's stock trades at a premium to telecom peers based on projected earnings, book value, sales and cash flow. But its growth rates are superior. Since 2007, AboveNet has grown net income 63% annually, on average. SunTrust

offers a target of $73, implying that the shares are undervalued by 36%. To read the rest, head over to