"Even when the market is up a lot, you can always find some good stocks that have been left behind but could be on the verge of a rebound," says George Putnam.

The editor of The Turnaround Letter explains, "That's where we suggest you focus your efforts right now. These eight stocks all have strong business franchises and have all significantly lagged the market over the last two years.

"In fact, several of them are still trading near or even below where they were in early 2009. Here, we look at Bank of America (BAC), Best Buy (BBY), Campbell Soup (CPB), Cisco Systems (CSCO), Microsoft (MSFT) and Sprint Nextel (S).

"MGIC (MTG) is the leading U.S. private mortgage insurer; in fact, the company claims to have founded the mortgage insurance industry in 1957," notes turnaround specialist George Putnam.

The editor of The Turnaround Letter explains, "After many years of relatively steady earnings, MGIC was forced to sharply increase its reserves beginning in 2007 as more homeowners began defaulting on their mortgages.

"As a result, the company posted large losses in each of the last three years, which reduced its capital to a precarious level. Almost all of the other mortgage insurers suffered similar fates, with several competitors being forced out of business.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"Founded in 1938, Owens Corning (OC) -- my top pick for 2011, is a leading manufacturer of building products, including insulation, roofing products, and composite materials," says George Putnam.

The editor of The Turnaround Letter explains, "The stock looks quite cheap, particularly for a company with such a strong business franchise in a temporarily depressed sector.

"Founded in 1938, Owens Corning (OC) is a leading manufacturer of building products, including insulation, roofing products, and composite materials; the stock looks quite cheap, particularly for a company with such a strong business franchise in a temporarily depressed sector," says George Putnam.

The editor of The Turnaround Letter explains, "From the early 1950s through the early 1970s some of the company's insulation products contained asbestos.

"This led to massive legal liabilities in the 1990s, which forced the company to file for bankruptcy in October 2000. Like most of the asbestos-related cases, Owens Corning's Chapter 11 proceedings were protracted and contentious.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Global Crossing (GLBC) was started in 1997 to build a worldwide fiber optic cable network; revenues grew very slowly, and the company was forced to file for Chapter 11 in January 2002," explains turnaround specialist George Putnam.

Now, however, the editor of The Turnaround Letter suggests, "The potential of that network is finally beginning to be fulfilled."

"We all know that, despite the big run-up recently, many stocks are still below their highs of a year or two ago," observes turnaround expert George Putnam.

In The Turnaround Letter, he suggests, "But what about some of the biggest, best known and best managed companies that are trading below where they were ten years ago? That's pretty tempting to us." Here, he looks at eight stocks that can now be bought at prices below their 1999 highs.

"Sure, late 1999 was the last gasp of the Internet bubble, and so that explains some of the tech names. But our list includes retail, beverage, entertainment, drug and other low-tech businesses.

"Being contrarians, we are always looking for laggard stocks with the potential to rebound," says turnaround expert George Putnam.

In his The Turnaround Letter, the advisor reviews four medical and pharmaceutical stocks that have been among the worst performers in the S&P 100 since the market bottom. Despite their poor performance, he thinks they may be due for a rebound.

"We think that investors who got left behind by the first leg of the market rally are struggling to catch up.

"Global Crossing (NASDAQ: GLBC) was started in 1997 to build a worldwide fiber optic cable network, with the strategy, 'if you build it, they will come'," says George Putnam, adding, "But as the telecom bubble burst around 2000, nobody came."

Now, in his always-excellent The Turnaround Letter, the advisor suggests, "We think the current stock price gives you the opportunity to buy into a very valuable communications network at a tiny fraction of its original cost."

"The new stock went as high as 36 shortly after it began trading after its bankruptcy. When it later dropped in price, several high-profile investors accumulated sizable positions.

"Even among the broad-based market carnage of the past year, regional banks with heavy real estate exposure have been notably poor performers," notes turnaround expert George Putnam.

In The Turnaround Letter, he explains, "While investors are still wary of this group, there are cases where the market has overreacted and the stocks will eventually rebound dramatically." Here, he looks at four favorite regionals.

"Many regional banking stocks are now trading at a small fraction of their 'book value.' In more normal times, most banks will trade for two to three times book value and sometimes more.

"Despite coming close to bankruptcy in 2002, Williams Co. (NYSE: WMB) has some of the premier assets in each of its business segments: exploration & production, mid-stream and pipelines," says turnaround expert George Putnam.

In his The Turnaround Letter, he explains, "The company now has the financial strength not only to survive the current downturn but to grow and prosper."

"Begun in 1908 as a pipeline construction company, Williams is now a major, integrated natural gas company; it produces, gathers, processes and transports natural gas throughout the United States.

"The steel stocks tend to go through boom and bust cycles depending on global economic activity; they have been pummeled over the last year, as the global economy slowed," notes turnaround expert George Putnam.

In his The Turnaround Letter, he explains, "But the news about steel is not all bad." Indeed, he believes some steel companies are poised for a turnaround. Here's his review of 6 leading steel production companies.

"Weakness in two big steel consuming industries, autos and construction, has been particularly troublesome for the steelmakers.

"However, there is evidence that steel inventories are gradually being worked off to low levels. There are also signs that economic activity in China, which is a huge consumer of steel, will not fall off as far as some economists initially feared.

After the airline went through bankruptcy twice, turnaround expert George Putnam now sees improving long-term prospects for US Airways (NYSE: LCC).

In his The Turnaround Letter, the advisor suggests, "When travel does begin to pick up again, US Air with its lean cost structure should profit handsomely." Here's his review.

"US Airways began in 1939 as All-American Airways delivering mail to Western Pennsylvania and the Ohio Valley; from there it grew through acquisitions to be a major national airline.

"Walt Disney (NYSE: DIS) is arguably the most prominent entertainment operation in the world today, with one of the world's most recognized brands across all of its major business segments" says George Putnam.

In The Turnaround Letter, he observes, "We believe that the current market volatility and economic weakness provide an opportunity to buy into a preeminent global brand at a temporarily depressed price."

"Disney controls theme parks, such as Disneyland and Disney World; television networks, including ABC and ESPN; movie studios, and character-themed consumer products.

"While the company's financial results have been hurt temporarily by the global economic weakness, we believe it is well positioned to prosper again when economic conditions improve.

"Many experts believe that oil prices are at unsustainably low prices now, and they expect a sharp rise in the commodity price as supply and demand come back into line again," says turnaround expert George Putnam.

In The Turnaround Letter, he suggests, "If oil does begin to rise again, the oilfield service stocks could rebound sharply." Here, he takes a look at large cap plays on a rebound within the oilfield services sector.

"We all know that oil prices have fallen dramatically from their highs in the summer of 2008. But different types of oil-related stocks have reacted quite differently to the price change in the underlying commodity.

"For example, while oil itself has dropped nearly 70% from its 12-month high, the stock of the largest integrated oil company, Exxon-Mobil (NYSE: XOM), is down only 26%, less than the stock market as a whole.

"If you are looking for maximum rebound potential, you have to go lower down on the quality spectrum; it is typically the lower quality and lower priced stocks that will have the largest gains when the market rebounds," says turnaround expert George Putnam.

In his industry-leading service focused on distressed companies, The Turnround Letter, he looks at a package of 10 stocks recently trading below $5 per share while also offering "bundles of cash."

Here's his review: