Barclays on Tuesday gave clients a list of its top picks in the small- and mid-cap space, predicting a rally in these stocks due to a range of positive catalysts in the months ahead.
"Our methodology is based on a risk-adjusted returns framework on stocks where our analysts have high conviction and layer on considerations for liquidity, risk/reward characteristics, minimum return thresholds, recent performance, and balance sheet strength," read the note.
What makes the list unique, according to the report, is the firm's focus on the companies that are likely to benefit from new economic policies under Donald Trump, a better lending environment and above-average organic growth.
The 16 stocks mentioned in the report were selected from a universe of more than 340 companies. In the next 12 months, Barclays estimates its picks have a median upside potential of 22 percent.
Here are some of the stocks that made the list: