Call it a case of pipsqueak power in a Wall Street environment in which the research cream of the brokerage community, much of it jittery and concerned, is pushing clients to play the biggies, those companies with the most financial muscle, liquidity and defined prospects, and to shun the peewees.

Whether that’s right or wrong is anybody’s guess, but in any event you shouldn’t shut your eyes to smaller growth-oriented companies that offer the potential for strong market gains.

Take, for example, a relatively small company, Steiner Leisure ($280 million in annual sales), that’s translating such fitness-minded activities like massage, yoga, and aromatherapy into big business.

If you’re about to say that’s not your kind of investment exercise, think again. Steiner, a leading provider of spa services, is a big winner (up 53%) in this year’s down market, with the stock having ballooned from a 2003 close of $14.28 to a 2004 high of $25.26.It closed yesterday at $21.79.

Steiner primarily operates spas and salons on 113 cruise ships and in 64 resort spas, in which it offers a wide variety of body and beauty treatments and markets more than 250 premium beauty products. Its impressive customer base includes such well-known names as Carnival Cruise Lines, Disney Cruise Line, Hilton Hotels, Marriott Corp., and Royal Caribbean Cruises.

Despite the stock’s sharp rise this year, some pros see the floating spa operator – which is capitalizing on favorable trends in health awareness, personal care, and fitness – making an even bigger splash in the months ahead, with projected gains ranging from 27% to 52%.

One bull is Richard Moroney, editor of Upside, a Hammond, Ind.-based investment newsletter with a knack of ferreting out winning small and midcap stocks. Since its May 1999 inception, excluding dividends and transaction costs, Upside claims its buy list gained 198.6%. This compares with a same period gain of 24.2% in the Russell 2000 Index and a decline of 15.9% in the S &P 500.

In making his case for Steiner, Mr. Moroney kicks off with its most recently reported results – a robust second quarter earnings gain of 53% on a 26% sales hike, the 13th consecutive quarter in which the company topped Wall Street’s expectations.

For all of 2004, the consensus among Wall Street analysts calls for a 28% sprint to $1.85 (versus $1.44 a year earlier). Next year’s estimates run as high as $2.15, implying the prospects of another 16% rise in 2005.

Mr. Moroney figures Steiner has several growth drivers, chief among them improving cruise-industry fundamentals and new ship launches, including those with larger spa facilities. He also points to expanding land-based operations and increased sales of high-margin products.

But what about increased competition from cruise operators themselves (late last year, select ships of Princess Cruises began offering their own in-house spa service). Mr. Moroney thinks this development is worth watching, but he figures Steiner is well-positioned to continue to grow sales and profits, given its reputation for providing high-quality services while generating attractive returns for cruise operators.

To our bull, it all adds up to a near-term $28 price tag for Steiner, which is what he thinks the stock is currently worth based on its impressive operating performance.

An even bigger rise – a jump to $33-$35 a year out – is envisioned by money manager Mark Gottlieb of Los Angeles-based P &W Partners. “You’ve got a company selling at a modest 12.5 times trailing 12-month earnings that’s growing faster than some of its better known customers and yet is generally accorded a lower p/e multiple. That makes no sense,” he said. As such, he thinks it’s only a matter of time before Steiner is rewarded a heftier p/e, assuming, he adds, consumer spending doesn’t fall out of bed. Mr. Gottlieb, pointing, as well, to the company’s strong cash flow, also rates Steiner a tempting takeover candidate and thinks it could fetch a price in the low $30s.