GOLDMAN: Here Are The 40 Cheapest Stocks In The Market

Stocks have reached record highs this year, with the S&P climbing past 1700for the first time in its history.

And Goldman Sachs strategist David Kostin believes the fun isn’t about to stop any time soon.

“We forecast a 4% rise through year-end and a 7% return during the next 12 months,” he writes in a letter to clients.

Kostin’s targets the S&P at 1750 in 6 months and 1825 in 12 months.

Kostin believes earnings growth through 2013 and 2014 will support “a continued market rally.”

In his new US Monthly Chartbook, Kostin offers a list of the 40 stocks with the most upside relative to Goldman analysts’ price targets.

One stock has the potential to surge 60% before it hits fair value.

40. National Oilwell Varco: 22.6% Upside

Ticker: NOV

Recent price: $US70.17

Upside to target: 22.6%

The energy equipment maker saw a 18.3% YOY jump in quarterly revenue.

Source: Goldman Sachs

39. Bristol-Myers Squibb: 22.6% Upside

Ticker: BMY

Recent price: $US43.24

Upside to target: 22.6%

Shares of the biopharmaceutical company are up over 30% year to date.

Source: Goldman Sachs

38. Applied Materials: 22.6% Upside

Ticker: AMAT

Recent price: $US16.32

Upside to target: 22.6%

Shares of Applied Materials, a semiconductor manufacturer, have climbed 35% so far in 2013.

Source: Goldman Sachs

37. Precision Castparts: 22.7% Upside

Ticker: AMAT

Recent price: $US16.32

Upside to target: 22.6%

Precision Castparts' Q2 earnings beat last year's by 23%.

Source: Goldman Sachs

36. Schlumberger Ltd: 23.0% Upside

Ticker: SLB

Recent price: $US81.33

Upside to target: 23%

SLB, the world's largest oilfield services provider, posted Q2 EPS at $US1.15, beating the consensus estimate of $US1.11.

Source: Goldman Sachs

35. Valero Energy Corp: 23.0% Upside

Ticker: VLO

Recent price: $US35.77

Upside to target: 23.0%

Shares of the energy company are up 8% year to date.

Source: Goldman Sachs

34. Monsanto Co: 23.5% Upside

Ticker: MON

Recent price: $US98.78

Upside to target: 23.5%

The world's largest seed company saw earnings drop 3% on higher seed production costs.

Source: Goldman Sachs

33. QUALCOMM Inc: 23.9% Upside

Ticker: QCOM

Recent price: $US64.56

Upside to target: 23.9%

QUALCOMM's revenue grew to $US6.24 billion, up 35% from the year-ago quarter.

Source: Goldman Sachs

32. Goodyear Tire & Rubber: 24.3% Upside

Ticker: GT

Recent price: $US18.50

Upside to target: 24.3%

Shares of Goodyear are up nearly 35% in 2013.

Source: Goldman Sachs

31. Cognisant Tech Solutions: 24.3% Upside

Ticker: CTSH

Recent price: $US72.39

Upside to target: 24.3%

The IT services provider reported Q2 earnings of $US1 per share, beating the consensus estimate by 3 cents. The figure was up 22.4% from the year-earlier quarter.

Source: Goldman Sachs

30. EOG Resources: 24.4% Upside

Ticker: EOG

Recent price: $US145.49

Upside to target: 24.4%

EOG is expected to post a rise in earnings for Q2, up to $US1.76 a share from $US1.16 a year ago.

Source: Goldman Sachs

29. Cerner Corp: 24.5% Upside

Ticker: CERN

Recent price: $US49.00

Upside to target: 24.5%

Shares of Cerner are up 23% year to date.

Source: Goldman Sachs

28. Yahoo! Inc: 24.6% Upside

Ticker: YHOO

Recent price: $US28.09

Upside to target: 24.6%

Yahoo! revenues were a slight miss in Q2, at $US1.07 billion versus $US1.08 billion expected by analysts

Source: Goldman Sachs

27. General Motors: 25.5% Upside

Ticker: GM

Recent price: $US35.87

Upside to target: 25.5%

Shares of GM are up over 25% in 2013.

Source: Goldman Sachs

26. First Solar: 26% Upside

Ticker: FSLR

Recent price: $US49.22

Upside to target: 26.0%

Shares of First Solar tanked after it reported earnings.

Source: Goldman Sachs

25. Newfield Exploration: 26.0% Upside

Ticker: NFX

Recent price: $US24.60

Upside to target: 26.0%

Lower gas volume has hit Newfield, with Q2 earnings of 37 cents per share down nearly 40% from the year-earlier profit of 61 cents per share.

Source: Goldman Sachs

24. Estee Lauder: 26.4% Upside

Ticker: EL

Recent price: $US65.65

Upside to target: 26.4%

The cosmetics retail company is set to up its presence in Africa in an effort to capture the regions growing middle class.

Source: Goldman Sachs

23. Anadarko Petroleum: 26.5% Upside

Ticker: APC

Recent price: $US88.52

Upside to target: 26.5%

Shares of the oil company are up nearly 20% year to date.

Source: Goldman Sachs

22. Crown Castle Intl: 26.7% Upside

Ticker: CCI

Recent price: $US70.25

Upside to target: 26.7%

Crown Castle's Q2 revenue increased 25.6% YOY to $US734.9 million, above consensus estimates.

Source: Goldman Sachs

21. Nabors Industries: 26.7% Upside

Ticker: NBR

Recent price: $US15.39

Upside to target: 26.7%

The land-driller missed earnings estimates in Q2, with EPS at 8 cents.

Source: Goldman Sachs

20. Phillips 66: 26.8% Upside

Ticker: PSX

Recent price: $US61.50

Upside to target: 26.8%

Phillips' parent, ConocoPhillips, spun off the refining and sales business into a separate publicly traded company in 2012. PSX is up about 5% year to date.

Source: Goldman Sachs

19. Vulcan Materials: 27.2% Upside

Ticker: VMC

Recent price: $US47.18

Upside to target: 27.2%

Vulcan posted earnings at 23 cents per share last quarter, better than the year-earlier quarter loss of 13 cents. At $US738.7 million, total revenue surpassed the consensus estimate by 4.6%.

Source: Goldman Sachs

18. Noble Corp. 28.3% Upside

Ticker: NE

Recent price: $US38.20

Upside to target: 28.3%

Noble's EPS increased 6.78% to $US0.63 in Q2 versus $US0.59 in the year-ago quarter. Revenue spiked 13.47% from the year-earlier quarter to $US1.02 billion.

Source: Goldman Sachs

17. Wyndham Worldwide: 28.4% Upside

Ticker: WYN

Recent price: $US62.30

Upside to target: 28.4%

Shares of Wyndham are up 14% year to date.

Source: Goldman Sachs

16. Wynn Resorts: 29.2% Upside

Ticker: WYNN

Recent price: $US133.13

Upside to target: 29.2%

Wynn notched $US1.33 billion in revenue last quarter, a 6.3% spike over the prior year (but just short of analyst expectations of $US1.34 billion).

Source: Goldman Sachs

15. Noble Energy: 29.6% Upside

Ticker: NBL

Recent price: $US62.49

Upside to target: 29.6%

Noble Energy is up 25% so far in 2013.

Source: Goldman Sachs

14. Cameron Intl: 29.8% Upside

Ticker: CAM

Recent price: $US59.30

Upside to target: 29.8%

The Houston-based company came out with an EPS of 79 cents last quarter, beating estimates by a penny. Quarterly revenue is up 18% year over year.

Source: Goldman Sachs

13. Broadcom Corp: 30.6% Upside

Ticker: BRCM

Recent price: $US27.57

Upside to target: 30.6%

Broadcom recently saw its biggest drop since October 2007, tumbling 15% on July 24 on the news that quarterly sales were below expectations.

Source: Goldman Sachs

12. Ensco: 30.8% Upside

Ticker: ESV

Recent price: $US57.34

Upside to target: 30.8%

Ensco reported earnings at $US1.55 a share, surpassing estimates of $US1.50. Total revenue grew by 16.5% from the year-ago quarter.

Source: Goldman Sachs

11. Ryder System: 31.0% Upside

Ticker: R

Recent price: $US61.84

Upside to target: 31.0%

Shares of Ryder systems are up 25% year to date.

Source: Goldman Sachs

10. Southwestern Energy: 31.5% Upside

Ticker: SWN

Recent price: $US38.79

Upside to target: 31.5%

Southwestern beat on earnings and revenue. Q2 revenue rose 42.2% to $US862.0 million from the year-earlier figure of $US606.1 million.

Source: Goldman Sachs

9. Expedia: 31.6% Upside

Ticker: EXPE

Recent price: $US47.13

Upside to target: 31.6%

At an EPS of $US0.51, Expedia missed estimates last quarter, and it sent its stock price tumbling.

Source: Goldman Sachs

8. Devon Energy Corp: 32.7% Upside

Ticker: DVN

Recent price: $US55.01

Upside to target: 32.7%

Analysts are predicting earnings at $US3.85 per share and revenue at $US10.30 billion for the fiscal year, according to Forbes.

Source: Goldman Sachs

7. Halliburton: 32.8% Upside

Ticker: HAL

Recent price: $US45.19

Upside to target: 32.8%

Shares of the oilfield services company are up 28% year to date.

Source: Goldman Sachs

6. Simon Property Group: 33.1% Upside

Ticker: SPG

Recent price: $US160.06

Upside to target: 33.1%

SPG beat Q2 earnings estimates, with total revenue up 4.1% from the year-ago quarter.

Source: Goldman Sachs

5. American Tower Corp: 34.2% Upside

Ticker: AMT

Recent price: $US70.79

Upside to target: 34.2%

Famed Muddy Waters head Carson Block has called out AMT for possible fraud in its appraisal of towers in Brazil.

Source: Goldman Sachs

4. salesforce.com inc: 37.1% Upside

Ticker: CRM

Recent price: $US43.75

Upside to target: 37.1%

In case you missed it, Salesforce.com's stock has shot up more than 400% since 2009.

Source: Goldman Sachs

3. Ventas Inc: 38.4% Upside

Ticker: VTR

Recent price: $US65.74

Upside to target: 38.4%

Ventas announced Q2 normalized funds from operations (FFO) per share at $US1.01, missing consensus estimates by a penny.

Source: Goldman Sachs

2. Autodesk Inc: 41.3% Upside

Ticker: ADSK

Recent price: $US35.39

Upside to target: 41.3%

Autodesk is a great stock to play Europe's recovery, according to Barron's.

Source: Goldman Sachs

1. Marathon Petroleum: 63.6% Upside

Ticker: MPC

Recent price: $US73.33

Upside to target: 63.6%

The oil company beat estimates, with revenues of $US25.7 billion (up 26.9% YOY).

Source: Goldman Sachs

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