GOLDMAN: These Are The 40 Most Undervalued Stocks In The Market

David Kostin, Goldman Sachs’ chief U.S. equity strategist, says the S&P 500 will climb just 3% this year.

However, within the market he sees no shortage of stocks and sectors expected to outperform.

In his new U.S. Monthly Chartbook, Kostin provides a list of stocks with the most upside potential today.

According to Goldman’s analysts, the 40 stocks on this list offer 21% to 41% upside relative to their recent prices.

The current list has a mix of energy, tech, and retail firms.

Lennar: 21.2% Upside

Ticker: LEN

Sector: Homebuilding

Recent Price: $US39.62

Upside to Target: 21.2%

Lennar's Q1 earnings and revenue surged as deliveries and selling prices improved, according to Marketwatch said.

Source: Goldman Sachs

Walgreen: 21.2%

Ticker: WAG

Sector: Retail

Recent Price: $US66.03

Upside to Target: 21.2%

Walgreen said it expects its store count to increase by 55 to 75 for the year, according to Marketwatch.

Source: Goldman Sachs

Wyndham: 21.5% Upside

Ticker: WYN

Sector: Hospitality

Recent Price: $US73.23

Upside to Target: 21.5%

Wyndham's fiscal Q2 earnings climbed a better-than-expected 3.9% as revenue grew at all three of its major segments, led by its lodging business, according to Marketwatch.

Source: Goldman Sachs

AMGEN: 21.6% Upside

Ticker: AMGN

Sector: Biotech

Recent Price: $US123.34

Upside to Target: 21.6%

Amgen's Q4 sales ticked up 13%.

Source: Goldman Sachs

McKesson: 21.8% Upside

Ticker: MCK

Sector: Healthcare IT

Recent Price: $US176.57

Upside to Target: 21.8%

McKesson's fiscal Q3 results were 'incredibly strong,' ISI Group's Ross Muken said, once one-time items were discounted, according to Marketwatch.

Source: Goldman Sachs

Jabil Circuit: 22.2% Upside

Ticker: JBL

Sector: Logistics

Recent Price: $US18.00

Upside to Target: 22.2%

Jabil is in the midst of a major restructuring period, according to Marketwatch.

Source: Goldman Sachs

Halliburton: 22.3% Upside

Ticker: HAL

Sector: Oil services

Recent Price: $US58.89

Upside to Target: 22.3%

Halliburton Q4 revenues climbed 19% on strong international deals, according to Marketwatch.

Source: Goldman Sachs

Noble Energy: 22.5% Upside

Ticker: NGL

Sector: Oil and gas

Recent Price: $US71.04

Upside to Target: 22.5%

Noble just sold Israeli gas licenses to Australia's Woodford for more than $US1 billion, according to Marketwatch.

Source: Goldman Sachs

Simon Property Group: 23.2% Upside

Ticker: SPG

Sector: REIT

Recent Price: $US164.00

Upside to Target: 23.2%

Simon Property recently announced it was spinning off strip malls and smaller units into an independent subsidiary, according to Marketwatch.

Source: Goldman Sachs

Pioneer Natural Resources: 23.4% Upside

Ticker: PXD

Sector: Energy

Recent Price: $US187.14

Upside to Target: 23.2%

Pioneer shares now enjoy 38% more exposure in Stan Druckenmiller's portfolio, according to InsiderMonkey.

Source: Goldman Sachs

Monster Beverage: 23.8% Upside

Ticker: MNST

Sector: Food and beverage

Recent Price: $US69.45

Upside to Target: 23.8%

Monster shares rose as much as 4% after its Q4 earnings came in better than expected.

Source: Goldman Sachs

Marathon Petroleum: 24.1% Upside

Ticker: MPC

Sector: Energy

Recent Price: $US87.04

Upside to Target: 24.1%

Marathon Petroleum's Q4 revenues climbed 20%, according to Marketwatch.

Source: Goldman Sachs

Delta Air Lines: 24.1% Upside

Ticker: DAL

Sector: Airline

Recent Price: $US34.65

Upside to Target: 24.1%

Delta said traffic climbed 2.4% MUM in February, according to Marketwatch.

Source: Goldman Sachs

Estee Lauder: 24.1% Upside

Ticker: EL

Sector: Cosmetics

Recent Price: $US66.88

Upside to Target: 24.1%

Estee Lauder full-year fiscal 2013 sales climbed 5%, according to Forbes.

Source: Goldman Sachs

Dollar Tree: 24.6% Upside

Ticker: DLTR

Sector: Retail

Recent Price: $US52.18

Upside to Target: 24.6%

Dollar Tree same-store sales in fiscal Q4 climbed 1.2%, according to Marketwatch.

Source: Goldman Sachs

Precision Castparts: 25.4% Upside

Ticker: PCP

Sector: Manufacturing

Recent Price: $US252.76

Upside to Target: 24.6%

Precision's fiscal Q3 profits climbed 28% after a string of successful acquisitions, according to Marketwatch.

Source: Goldman Sachs

Anadarko Petroleum: 26.2% Upside

Ticker: APC

Sector: Oil and gas

Recent Price: $US84.76

Upside to Target: 26.2%

Anadarko shares now figure in David Einhorn's portfolio, according to Marketwatch.

Source: Goldman Sachs

Goodyear: 26.3% Upside

Ticker: GT

Sector: Tires

Recent Price: $US26.13

Upside to Target: 26.3%

Goodyear's North America operating profit jumped 72% in Q4, according to Marketwatch.

Source: Goldman Sachs

Thermo Fisher Scientific: 27.2% Upside

Ticker: TMO

Sector: Life sciences

Recent Price: $US120.24

Upside to Target: 27.2%

Thermo shares now figure in Aaron Cowen's Suvretta Capital Management portfolio, according to Insider Monkey.

Source: Goldman Sachs

PVH Corp.: 28.2% Upside

Ticker: PVH

Sector: Retail

Recent Price: $US300.28

Upside to Target: 28.2%

PVH brand Tommy Hilfiger's Europe sales climbed 7% in fiscal Q4, according to Marketwatch.

Source: Goldman Sachs

Peabody Energy: 28.5% Upside

Ticker: BTU

Sector: Coal

Recent Price: $US300.28

Upside to Target: 28.2%

Peabody's 'asset mix, cost structure, and debt maturity schedule give it one of the stronger operating profiles today,' Stephen Simpson of Kratisto Investing says.

Source: Goldman Sachs

Michael Kors: 28.7% Upside

Ticker: KORS

Sector: Coal

Recent Price: $US93.27

Upside to Target: 28.7%

Kors' fiscal Q3 profit soared 77% on strong holiday sales, according to Marketwatch.

Source: Goldman Sachs

Mohawk Industries: 28.7% Upside

Ticker: MHK

Sector: Manufacturing

Recent Price: $US135.98

Upside to Target: 28.7%

Mohawk was added to the S&P500 at the end of last year.

Source: Goldman Sachs

Apache Corp.: 29.0% Upside

Ticker: APA

Sector: Oil and gas

Recent Price: $US135.98

Upside to Target: 28.7%

Apache is now the most active driller in East Texas, a burgeoning shale play, according to Richard Zeits.

Source: Goldman Sachs

Mylan: 29.0% Upside

Ticker: MYL

Sector: Pharma

Recent Price: $US48.83

Upside to Target: 29.0%

Mylan just won a $US100 million lawsuit against GSK, according to BizJournals.

Source: Goldman Sachs

Facebook: 29.5% Upside

Ticker: FB

Sector: Social networking

Recent Price: $US60.24

Upside to Target: 29.5%

Facebook shares have rebounded about 50% since they began declining following the March. 25 purchase of Oculus Rift.

Source: Goldman Sachs

salesforce.com: 29.6% Upside

Ticker: CRM

Sector: Customer service

Recent Price: $US57.09

Upside to Target: 29.6%

salesforce.com posted the biggest year-over-year revenue growth of the top ten cloud vendors, according to Marketwatch.

Source: Goldman Sachs

Dollar General

Ticker: DG

Sector: Retail

Recent Price: $US55.48

Upside to Target: 29.8%

Dollar General said it expects total sales to rise 8% to 9% in 2014, according to Marketwatch.

Source: Goldman Sachs

US Steel: 30.4% Upside

Ticker: X

Sector: Manufacturing

Recent Price: $US27.61

Upside to Target: 30.4%

US Steel is banking strong auto sales to shore up the company's profile, Anup Singh writes.

Source: Goldman Sachs

Tenet Health Care: 30.8% Upside

Ticker: THC

Sector: Health care

Recent Price: $US42.81

Upside to Target: 30.8%

Tenet is a buy from Mizuho, which says the hospital sector will benefit from individual mandate exemption rules, according to Marketwatch.

Source: Goldman Sachs

CBRE Group: 31.2% Upside

Ticker: CBG

Sector: Real estate brokerage

Recent Price: $US27.43

Upside to Target: 31.2%

CBRE was recently ranked the No. 1 brokerage in the country by National Real Estate Investor, according to a release.

Source: Goldman Sachs

IntercontinentalExchange: 31.4% Upside

Ticker: ICE

Sector: Exchange

Recent Price: $US197.83

Upside to Target: 31.4%

ICE's first quarter 2014 revenues from credit default swap (CDS) trade execution, processing and clearing businesses climbed 30% YOY to $US43 million, according to a release.

Source: Goldman Sachs

Kinder Morgan Class P: 35.4% Upside

Ticker: KMI

Sector: Energy

Recent Price: $US32.49

Upside to Target: 35.4%

Kinder Morgan 'is a quality dividend stock,' according to the Motley Fool. Its last dividend was $US0.41 a share.

Source: Goldman Sachs

Tesoro: 36.4%

Ticker: TSO

Sector: Refining

Recent Price: $US50.59

Upside to Target: 36.4%

Tesoro and the rest of the refining industry will benefit from a widening spread between Brent and LLS crude, Barclays said according to Barron's.

Source: Goldman Sachs

Amazon: 38.3% Upside

Ticker: AMZN

Sector: Retailing

Recent Price: $US336.37

Upside to Target: 38.3%

Amazon just launched a new TV service.

Source: Goldman Sachs

Autodesk

Ticker: ADSK

Sector: Software

Recent Price: $US49.18

Upside to Target: 36.8%

Autodesk recently bought Delcam, a supplier of advanced computer-aided manufacturing software based in the U.K., according to Marketwatch.

Source: Goldman Sachs

General Motors: 39.5% Upside

Ticker: GM

Sector: Auto

Recent Price: $US34.42

Upside to Target: 39.5%

GM sales climbed 4% YOY in March.

Source: Goldman Sachs

Cabot Oil And Gas: 41.7% Upside

Ticker: COG

Sector: Oil and gas

Recent Price: $US33.88

Upside to Target: 41.7%

Cabot's Q4 profits climbed 91% on higher production, according to Marketwatch.

Source: Goldman Sachs

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