DEUTSCHE BANK: These Are The 17 Best Stocks For Small Cap Boom

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The U.S. stock markets have been having a banner year.

And as big time companies hum along, small cap stocks — which tend to do better than the S&P 500 during good times and worse during bad times — have been singing even louder.

Small cap stocks have little exposure to foreign markets where growth has been slowing. Furthermore, they are less exposed to the negative effects of a strengthening dollar.

In a new report to clients, Deutsche Bank’s David Bianco offers his firm’s calls for the best mid and small cap stocks right now.

These buy-rated non-S&P 500 stocks have market caps greater than $800 million, price-earnings ratios less than 25, 2013 EPS growth rates greater than 8%, and net debt/market cap less than 30%.

Relative to Deutsche Bank’s analysts’ targets, these stocks offer return opportunities of 5% to 23%.

Allegiant Travel: 10% Upside

Ticker: ALGT

Industry: Airlines

Target Price: $110

Price Upside: 10%

Net Debt/Mkt Cap: -10%

'13 EPS Growth: +18%

Allegiant is a low-cost airline company based out of Nevada, with almost $950 million in revenue TTM.

Source: Deutsche Bank

Dick's Sporting Goods: 13% Upside

Ticker: DKS

Industry: Specialty Retail

Target Price: $57

Price Upside: 13%

Net Debt/Mkt Cap: -6%

'13 EPS Growth: +12%

Dick's Sporting Goods stores operate in 44 states, selling apparel, footwear, hunting and fishing gear, and fitness and golf equipment. The company has over 11,000 employees.

Source: Deutsche Bank

Embraer S/A: 10% Upside

Ticker: ERJ

Industry: Aerospace & defence

Target Price: $41

Price Upside: 10%

Net Debt/Mkt Cap: +5%

'13 EPS Growth: +50%

Embraer sells aircrafts for civil and defence aviation across the world, and boasts $7 billion in market capitalisation. Shares of Embraer are up over 30% year to date.

Source: Deutsche Bank

Foot Locker: 5% Upside

Ticker: FL

Industry: Specialty Retail

Target Price: $39

Price Upside: 5%

Net Debt/Mkt Cap: -14%

'13 EPS Growth: +10%

Shares of Foot Locker, a major athletic footwear and apparel chain, are up over 17% so far this year. It operates over 3,000 stores in the United States, Canada, Europe, Australia, and New Zealand.

Source: Deutsche Bank

GNC Holdings: 6% Upside

Ticker: GNC

Industry: Specialty Retail

Target Price: $50

Price Upside: 6%

Net Debt/Mkt Cap: +20%

'13 EPS Growth: +20%

Shares of GNC have had a monster 2013, up 42% year to date. The company retails and manufactures vitamins, minerals, diet products and other wellness goods.

Source: Deutsche Bank

Hexcel: 12% Upside

Ticker: HXL

Industry: Aerospace & defence

Target Price: $40

Price Upside: 12%

Net Debt/Mkt Cap: +6%

'13 EPS Growth: +17%

Hexcel Corporation is a Stamford, Connecticut-based aerospace manufacturer, with $1.59 billion in revenue TTM.

Source: Deutsche Bank

IAC: 22% Upside

Ticker: IACI

Industry: Internet Software & Services

Target Price: $62

Price Upside: 22%

Net Debt/Mkt Cap: -4%

'13 EPS Growth: +48%

Headquartered in the coolest looking building in New York City, IAC operates some very recognisable websites: Newsweek/The Daily Beast, Ask.com, About.com, Match.com, and OkCupid, for example. Shares are up 20% in the last 6 months.

Source: Deutsche Bank

Las Vegas Sands Corp: 20% Upside

Ticker: LVS

Industry: Hotels Restaurants & Leisure

Target Price: $65

Price Upside: 20%

Net Debt/Mkt Cap: +15%

'13 EPS Growth: +33%

You've heard of Las Vegas Sands' Chairman & CEO -- big time political donor Sheldon Adelson. Shares of the casino operating company recently rose on news that table gaming in Macau is on track to skyrocket.

Source: Deutsche Bank

Oceaneering International: 22% Upside

Ticker: OII

Industry: Energy Equipment & Services

Target Price: $96

Price Upside: 22%

Net Debt/Mkt Cap: 0%

'13 EPS Growth: +26%

Based in Houston, Oceaneering International provides services and products to the offshore oil and gas industry. Shares are up over 40% year to date.

Source: Deutsche Bank

ON Semiconductor: 23% Upside

Ticker: ONNN

Industry: Semiconductors

Target Price: $10

Price Upside: 23%

Net Debt/Mkt Cap: +10%

'13 EPS Growth: +27%

This Phoenix-based company has 20,000 employees and netted $2.81 billion in revenue TTM.

Source: Deutsche Bank

Pier 1 Imports: 15% Upside

Ticker: PIR

Industry: Specialty Retail

Target Price: $28

Price Upside: 15%

Net Debt/Mkt Cap: -4%

'13 EPS Growth: +8%

Pier 1 Imports retails decorative home furnishings, including lamps, vases, baskets, dinnerware, candles, and gift items. The company operates about 1,000 stores in the U.S. and Canada. Pier 1 shares are up about 20% in 2013.

Source: Deutsche Bank

SHFL Entertainment: 19% Upside

Ticker: SHFL

Industry: Hotels Restaurants & Leisure

Target Price: $22

Price Upside: 19%

Net Debt/Mkt Cap: -3%

'13 EPS Growth: +12%

SHFL manufactures gaming devices, like automatic card shufflers, deck checkers, and roulette chip sorters. Like Las Vegas Sands, SHFL stands to benefit from a healthy casino industry.

Source: Deutsche Bank

Shire PLC: 7% Upside

Ticker: SHPG

Industry: Pharmaceuticals

Target Price: $109

Price Upside: 7%

Net Debt/Mkt Cap: -2%

'13 EPS Growth: +10%

Dublin, Ireland-based Shire PLC is a biopharmaceutical company that manufactures and distributes pharmaceutical products. Last week, shares of Shire hit a 52-week high.

Source: Deutsche Bank

Spirit Airlines: 18% Upside

Ticker: SAVE

Industry: Airlines

Target Price: $40

Price Upside: 18%

Net Debt/Mkt Cap: -17%

'13 EPS Growth: +43%

Miramar, Florida-based Spirit is a low-fare airline operating 200 daily flights throughout the U.S., Latin America, and the Caribbean. Shares of the company have skyrocketed an astonishing 86% year to date.

Source: Deutsche Bank

Team Health Holdings: 6% Upside

Ticker: TMH

Industry: Health Care Providers & Services

Target Price: $43

Price Upside: 6%

Net Debt/Mkt Cap: +17%

'13 EPS Growth: +20%

Team Health provides outsourced healthcare staffing and administrative services to hospitals and healthcare providers in the U.S. Shares of Team Health have climbed 30% in 2013.

Source: Deutsche Bank

WNS: 6% Upside

Ticker: WNS

Industry: IT Services

Target Price: $19

Price Upside: 6%

Net Debt/Mkt Cap: 0%

'13 EPS Growth: +11%

Based in Mumbai, India, WNS provies business process outsourcing services worldwide. The company has 25,000 employees and has seen a 65% increase in stock price year to date.

Source: Deutsche Bank

Yandex: 14% Upside

Ticker: YNDX

Industry: Internet Software & Services

Target Price: $35

Price Upside: 14%

Net Debt/Mkt Cap: -6%

'13 EPS Growth: +27%

Yandex is basically the Google of Russia, operating a search engine and other Internet products that command about 60% market share in the country. Shares of Yandex have risen about 50% in the last 3 months.

Source: Deutsche Bank

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