"Goldman's Kostin suggests leaning on companies with high operating leverage that now are scraping the bottom of their profit-margin cycles, and those that are growing in the BRIC countries. Also, "companies with high free-cash-flow yields are likely to pursue mergers or return cash to shareholders via buybacks and dividends," he says. Goldman's diversified basket of 50 such stocks includes D.R. Horton (DHI), Teradyne (TER), Mylan Laboratories (MYL), GameStop (GME), Macy's (M), Cigna (CI) and International Paper (IP)."