GOLDMAN: Here Are The 10 Most Overpriced Stocks In The Market

red bull cliff divingOrlando Duque of Colombia dives from a 16 metre (53 feet) rock at Lana’i Lookout as some local hula girls look on in the lead up to the final round of the 2010 Red Bull Cliff Diving World Series in Oahu, Hawaii, September 8, 2010.

Goldman Sachs chief U.S. equity strategist David Kostin is bullish. He expects the S&P 500 to rally to 1,750 by the end of the year.

However, this is not to say that every stock in the market is a good buy right now.

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

We pulled the 10 stocks that have at least 20% to lose.


10. Boston Scientific: 20.2% Downside

Ticker: BSX

Sector: Healthcare

Recent Price: $9.27

Downside: 20.2%

Like other medical device companies, Boston Scientific is now subject to a 2.3% device tax that came as part of the Affordable Care Act.

Source: Goldman Sachs

9. Seagate Technology: 21.9% Downside

Ticker: STX

Sector: Technology

Recent Price: $44.83

Downside: 21.9% (rating: neutral)

Seagate, a hard-disk drive producer, has seen its revenues drop by 17%, 2%, and 4% in the last three quarters, respectively.

Source: Goldman Sachs

8. Juniper Networks: 22.3% Downside

Ticker: JNPR

Sector: Technology

Recent Price: $19.31

Downside: 22.3%

Last month, shares of the networking equipment company jumped upon comments from their CEO Kevin Johnson that demand from its telecom customers was looking good.

Source: Goldman Sachs

7. Xerox: 22.8% Downside

Ticker: XRX

Sector: Technology

Recent Price: $9.07

Downside: 22.8% (rating: neutral)

Five years after trading for $14, Xerox has recently hovered between $6-$8 (although now it's above $9). 'It's a business with low growth prospects but very steady cash flow thanks to long-term contracts,' writes The Street.

Source: Goldman Sachs

6. International Game Tech: 23.7% Downside

Ticker: IGT

Sector: Technology

Recent Price: $16.71

Downside: 23.7%

IGT is a Nevada-based gaming machine company. Last month CNBC's Jim Cramer also ranked this stock a sell. 'This stock is making a comeback,' Cramer said, 'but in the space I like Las Vegas Sands better.'

5. Western Union: 24.0% Downside

Ticker: WU

Sector: Financial

Recent Price: $17.11

Downside: 24.0%

Goldman has money transfer giant Western Union at a sell. Though net operating cash flow is up, the company is still growing at a significantly lower level than the industry average.

Source: Goldman Sachs

4. Hewlett-Packard: 31.5% Downside

Ticker: HPQ

Sector: Technology

Recent Price: $24.80

Downside: 31.5%

HP, which hasn't had a smartphone since it got rid of WebOS in 2011, may be entering the smartphone market once again. 'It would be silly if we say no,' HP's senior director of consumer business Su-yin Yam said recently. HP has to be in the game.'

Source: Goldman Sachs

3. Intel: 34.0% Downside

Ticker: INTC

Sector: Technology

Recent Price: $24.23

Downside: 34.0%

Raymond James's Hans Mosesmann recently warned clients that Intel's revenue may decline 'in the mid-to-high single digits,' though the company predicted a rise.

Source: Goldman Sachs

2. Cablevision Systems: 34.6% Downside

Ticker: CVC

Sector: Services

Recent Price: $16.82

Downside: 34.6%

rumours have been swirling that Charter Communications may make a bid to buy Cablevision, the fifth-largest provider.

Source: Goldman Sachs

1. Advanced Micro Devices: 38.7% Downside

Ticker: AMD

Sector: Technology

Recent Price: $4.08

Downside: 38.7%

AMD, a computer processors development company, has seen some crazy volatility year to date thanks to buyout rumours in late April.

Source: Goldman Sachs

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