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Nov 3 (Reuters) - J.P. Morgan Securities analysts recommended 26 small- and mid-cap stocks, mainly from healthcare and technology sectors, as these stocks are expected to outperform the broader market amid a weakening global economy.
The brokerage views the "SMiD 26", which has names like Gen-Probe, Myriad Genetics Inc and Cabot Microelectronics Corp, as core investments over the next 12 to 18 months.
The stocks included in the list have stable financial characteristics, price momentum better than their peers and a market capitalization of $7 billion or less, the brokerage said.
The list also features farm-equipment maker Agco Corp , which had recently posted better-than-expected third-quarter results. Equity strategist Thomas Lee expects the company to post a profit in the fourth quarter and 2009.
The only bank to make it to Lee's list is PrivateBancorp Inc, which recently reported a narrower-than-expected third-quarter loss.
"The successful execution of PVTB's strategic growth plan has dramatically improved its risk profile, with residential development loans falling to only 6 percent of total loans vs. 14 percent one year ago, also with the balance sheet doubling in size," Lee said.
Lee also believes the bank remains one of the few positioned on offense to take advantage of weaker competitors.
The 26 stocks, all rated "overweight," are:

AGCO Corp
Alberto-Culver Co
Alkermes Inc
BJ's Wholesale Club Inc
Cabot Microelectronics Corp
Cephalon Inc
Dean Foods Co
Equifax Inc
Gen-Probe Inc
Global Payments Inc
IDEXX Laboratories Inc
McAfee Inc
MFA Mortgage Investments
Minerals Technologies Inc
MKS Instruments Inc
Myriad Genetics Inc
National Instruments Corp
NeuStar Inc
Omnicare Inc
PrivateBancorp Inc
Robert Half International Inc
Strayer Education Inc
Volcano Corp
Waste Connections Inc
Wind River Systems Inc
WMS Industries Inc

(Reporting by Aftab Ahmed in Bangalore; Editing by Himani Sarkar, Amitha Rajan) Keywords: TOPPICKS/RESEARCH JPMORGAN (Reuters Messaging: aftab.ahmed@thomsonreuters.com; within U.S +1 646 223 8780; outside U.S +91 80 4135 5800)

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