GOLDMAN: Here Are The 40 Most Overpriced Stocks In The Market

The S&P, which
crossed the 1700 mark last week, shows no sign of slowing down.

Goldman Sachs economist David Kostin predicts a 4% rise through year-end and 7% returns over the next 12 months.

“We expect earnings growth of 11% for 2013 and 8% for 2014, supporting a continued market rally,” he writes in a new letter to clients.

Of course, with stocks at all-time highs, some seem to have nowhere to go but down.

In his new US Monthly Chartbook, Kostin offers a list of the 40 stocks with the most downside relative to Goldman analysts’ price targets. All face double-digit downsides with one stock potentially falling 40% before it’s fairly priced.

40. Comerica: 10.7% Downside

Ticker: CMS

Recent Price: $US42.54

Downside to Target: 10.7%

Comerica, up almost 40% on the year, announced a third-quarter dividend of $US0.17 per share.

Source: Goldman Sachs

39. Kroger: 10.9% Downside

Ticker: KR

Recent Price: $US39.27

Downside to Target: 10.9%

Kroger recently acquired grocer Harris Teeter.

Source: Goldman Sachs

38. Analogue Devices: 10.9% Downside

Ticker: ADI

Recent Price: $US49.38

Downside to Target: 10.9%

The semiconductor company is up nearly 14% year to date.

Source: Goldman Sachs

37. Parker-Hannifin Corp: 10.9% Downside

Ticker: PH

Recent Price: $US103.28

Downside to Target: 10.9%

The motion control technologies company will report earnings on August 6. Last quarter, Parker reported a 0.60% positive move.

Source: Goldman Sachs

36. Discovery Communications: 10.9% Downside

Ticker: DISCA

Recent Price: $US79.72

Downside to Target: 10.9%

Discovery reported revenue from affiliate fees jumped 5% last quarter and total revenue spiked 28% to $US1.46 billion.

Source: Goldman Sachs

35. C.R. Bard Inc: 11% Downside

Ticker: BCR

Recent Price: $US114.60

Downside to Target: 11.0%

Bard, a medical equipment company, is up almost 14% year to date.

Source: Goldman Sachs

34. Bed Bath & Beyond: 11.1% Downside

Ticker: BBBY

Recent Price: $US76.47

Downside to Target: 11.1%

Share of Bed Bath & Beyond are up nearly 40% on the year.

Source: Goldman Sachs

33. Rockwell Collins: 11.5% Downside

Ticker: COL

Recent Price: $US71.17

Downside to Target: 11.5%

The aviation electronics company announced last week that company President Kelly Ortberg has been given the additional title of CEO.

Source: Goldman Sachs

32. Coach Inc: 11.5% Downside

Ticker: COH

Recent Price: $US53.13

Downside to Target: 11.5%

Weak North American sales meant leather goods company Coach saw a 10% drop in its stock price on July 30.

Source: Goldman Sachs

31. Progressive Corp: 11.6% Downside

Ticker: PGR

Recent Price: $US26.01

Downside to Target: 11.6%

At 40 cents a share, the fourth-largest auto insurer missed analyst expectations for operating profit last quarter.

Source: Goldman Sachs

30. Pinnacle West Capital: 11.7% Downside

Ticker: PNW

Recent Price: $US58.90

Downside to Target: 11.7%

Pinnacle West reported earnings per share of $US1.18 in Q2 compared with $US1.12 in the year-earlier quarter.

Source: Goldman Sachs

29. Microsoft Corp: 12.1% Downside

Ticker: MSFT

Recent Price: $US31.84

Downside to Target: 12.1%

Microsoft whiffed on Q2 earnings, with EPS at $US0.59 versus expectations of $US0.75.

Source: Goldman Sachs

28. Ecolab Inc: 12.1% Downside

Ticker: ECL

Recent Price: $US92.14

Downside to Target: 12.1%

Headquartered in St. Paul, this hygiene and energy technologies company is up 25% year to date.

Source: Goldman Sachs

27. FMC Corp: 12.3% Downside

Ticker: FMC

Recent Price: $US66.16

Downside to Target: 12.3%

The chemical company is up 13% on the year.

Source: Goldman Sachs

26. SCANA Corp: 13.3% Downside

Ticker: SCG

Recent Price: $US51.91

Downside to Target: 13.3%

The energy holding company beat Q2 earnings, with operating revenue increasing 11.9% YOY to over $US1 billion, beating estimates of $US911 million.

Source: Goldman Sachs

25. NASDAQ OMX Group: 13.6% Downside

Ticker: NDAQ

Recent Price: $US32.40

Downside to Target: 13.6%

NASDAQ is up 28% year to date.

Source: Goldman Sachs

24. Frontier Communications: 13.9% Downside

Ticker: FTR

Recent Price: $US4.36

Downside to Target: 13.9%

Analysts are projecting a drop in the telephone company's earnings this week. Revenues are estimated to drop 5% YOY to $US1.19 billion on the quarter.

Source: Goldman Sachs

23. Bank of New York Mellon: 14.1% Downside

Ticker: BK

Recent Price: $US31.45

Downside to Target: 14.1%

The bank's stock is up 18% so far in 2013.

Source: Goldman Sachs

22. Staples: 14.8% Downside

Ticker: SPLS

Recent Price: $US17.02

Downside to Target: 14.8%

Staples, up nearly 50% year to date, will report earnings on August 21.

Source: Goldman Sachs

21. The Mosaic Co: 14.8% Downside

Ticker: MOS

Recent Price: $US41.09

Downside to Target: 14.8%

The mining company has seen potash prices drop in 2013.

Source: Goldman Sachs

20. AGL Resources: 14.8% Downside

Ticker: GAS

Recent Price: $US45.79

Downside to Target: 14.8%

With $US904 million in revenue last quarter, the energy company beat analyst projections of $US749 million and were also way up from the year-earlier level of $US686 million.

Source: Goldman Sachs

19. Carnival Corp: 16.3% Downside

Ticker: CCL

Recent Price: $US37.03

Downside to Target: 16.3%

Carnival has had its issues as of late, with high-profile disasters at sea shrinking profits. In February, 3,000 passengers were left at sea for days without functioning toilets.

Source: Goldman Sachs

18. Allegheny Technologies: 16.6% Downside

Ticker: ATI

Recent Price: $US27.57

Downside to Target: 16.6%

The metals company will hand out a dividend of $US0.18 per share on September 18.

Source: Goldman Sachs

17. Patterson Cos: 16.9% Downside

Ticker: PDCO

Recent Price: $US40.89

Downside to Target: 16.9%

The dental, veterinary, and rehabilitation supply company is up 20% year to date.

Source: Goldman Sachs

16. Sigma-Aldrich Corp: 17.4% Downside

Ticker: SIAL

Recent Price: $US40.89

Downside to Target: 16.9%

The lab chemical company's research business is expected to face challenges due to weak academic spending, according to Zacks.

Source: Goldman Sachs

15. Boston Scientific: 18.5% Downside

Ticker: BSX

Recent Price: $US10.92

Downside to Target: 18.5%

Boston Scientific is flying high in 2013, up 90% year to date.

Source: Goldman Sachs

14. Nucor Corp: 18.8% Downside

Ticker: NUE

Recent Price: $US46.78

Downside to Target: 18.8%

The steel company posted a 3% increase in quarterly sales to $US4.7 billion in Q2, with a net income of $US85.1 million.

Source: Goldman Sachs

13. Hospira Inc: 18.9% Downside

Ticker: HSP

Recent Price: $US40.70

Downside to Target: 18.9%

Hospira's Q2 earnings of 55 cents per share beat the consensus estimate and the year-earlier earnings of 51 cents per share. Revenues dropped slightly to $US1 billion.

Source: Goldman Sachs

12. Humana Inc: 21.1% Downside

Ticker: HUM

Recent Price: $US91.26

Downside to Target: 21.1%

Humana's Q2 earnings came in with an EPS of $US2.75, beating analyst expectations of $US2.47.

Source: Goldman Sachs

11. Juniper Networks: 21.6% Downside

Ticker: JNPR

Recent Price: $US21.67

Downside to Target: 21.6%

Juniper saw Q2 net incoming standing at $US97.9 million, which came out to $US0.19 per share. That was up from the year-earlier quarter of $US57.7 million ($US0.11 per share).

Source: Goldman Sachs

10. Celgene Corp: 23.1% Downside

Ticker: CELG

Recent Price: $US146.86

Downside to Target: 23.1%

The biotechnology company has seen its stock price spike nearly 30% in the last three months.

Source: Goldman Sachs

9. Cliffs Natural Resources: 23.1% Downside

Ticker: CLF

Recent Price: $US19.51

Downside to Target: 23.1%

Cliffs, which supplies iron ore to steel companies, had first and second quarter revenues above $US1 billion.

Source: Goldman Sachs

8. Symantec Corp: 25.0% Downside

Ticker: SYMC

Recent Price: $US26.68

Downside to Target: 25.0%

Shares of the computer security company Symantec are up 36% this year.

Source: Goldman Sachs

7. Garmin Ltd: 25.1% Downside

Ticker: GRMN

Recent Price: $US40.08

Downside to Target: 25.1%

Garmin warned of a 'particularly challenging' upcoming quarter after underwhelming Q2 earnings.

Source: Goldman Sachs

6. International Game Tech: 26.9% Downside

Ticker: IGT

Recent Price: $US18.47

Downside to Target: 26.9%

Shares of the gaming giant are up over 30% year to date.

Source: Goldman Sachs

5. United States Steel: 30.8% Downside

Ticker: X

Recent Price: $US17.35

Downside to Target: 30.8%

Shipments of tubular products were at 1.88 million tons last year and are expected to increase 2% this year.

Source: Goldman Sachs

4. Intel Corp: 31.4% Downside

Ticker: INTC

Recent Price: $US23.34

Downside to Target: 31.4%

Shares of Intel are up nearly 10% in the last 6 months.

Source: Goldman Sachs

3. Hewlett-Packard: 33.8% Downside

Ticker: HPQ

Recent Price: $US25.68

Downside to Target: 33.8%

Shares of HP have been on a tear in 2013, up nearly 80% year to date.

Source: Goldman Sachs

2. Cablevision Systems: 35.8% Downside

Ticker: CVC

Recent Price: $US18.69

Downside to Target: 35.8%

Rumours have swirled about a possible acquisition of Cablevision. The company posted rising profits for the quarter but subscribers were down.

Source: Goldman Sachs

1. Advanced Micro Devices: 40.3%

Ticker: AMD

Recent Price: $US3.77

Downside to Target: 40.3%

The semiconductor company is up 50% year to date.

Source: Goldman Sachs

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