GOLDMAN: Here Are 40 Great Comeback Stocks For 2014

China tents campingREUTERS/StringerFrom the 2013 International I Camping Festival in Mount Wugongshan of Pingxiang.

Not all stocks enjoyed 2013’s big market rally.

But that means many of them are actually poised for a strong first quarter in 2014, according to a new note from Goldman Sachs’s research team.

“Stocks with low valuation and laggards both tend to perform well during the first quarter,” Goldman writes. “We believe stronger growth and lower macro risk will help laggards outperform in 2014.”

The firm identified 40 stocks that fell behind their peers in 2013 and therefore have “attractive valuation relative to their sectors.”

We ranked the stocks by how much they underperformed their sector peers (i.e. return vs. sector).

40. Alcoa

Ticker: AA

Subsector: Aluminium

2013 return: 24%

Consensus 2014 earnings growth: 17%

Return vs. sector: -1%

Source: Goldman Sachs

39. The J.M. Smucker

Ticker: SJM

Subsector: Packaged Foods & Meats

2013 return: 23%

Consensus 2014 earnings growth: 8%

Return vs. sector: -3%

Source: Goldman Sachs

38. Citigroup

Ticker: C

Subsector: Other Diversified Financial Services

2013 return: 32%

Consensus 2014 earnings growth: 14%

Return vs. sector: -4%

Source: Goldman Sachs

37. SunTrust

Ticker: STI

Subsector: Regional Banks

2013 return: 31%

Consensus 2014 earnings growth: 23%

Return vs. sector: -4%

Source: Goldman Sachs

36. Xcel Energy

Ticker: XEL

Subsector: Electric Utilities

2013 return: 9%

Consensus 2014 earnings growth: 4%

Return vs. sector: -4%

Source: Goldman Sachs

35. Avon Products

Ticker: AVP

Subsector: Personal Products

2013 return: 21%

Consensus 2014 earnings growth: 15%

Return vs. sector: -5%

Source: Goldman Sachs

34. Allegheny Technologies

Ticker: ATI

Subsector: Steel

2013 return: 20%

Consensus 2014 earnings growth: NM

Return vs. sector: -5%

Source: Goldman Sachs

33. Chevron

Ticker: CVX

Subsector: Integrated Oil & Gas

2013 return: 19%

Consensus 2014 earnings growth: 4%

Return vs. sector: -6%

Source: Goldman Sachs

32. XL Group

Ticker: XL

Subsector: Property & Casualty Insurance

2013 return: 29%

Consensus 2014 earnings growth: -1%

Return vs. sector: -6%

Source: Goldman Sachs

31. Freeport-McMoRan Cp & Gld

Ticker: FCX

Subsector: Diversified Metals & Mining

2013 return: 19%

Consensus 2014 earnings growth: 25%

Return vs. sector: -7%

Source: Goldman Sachs

30. Kohl's

Ticker: KSS

Subsector: Department Stores

2013 return: 36%

Consensus 2014 earnings growth: 9%

Return vs. sector: -7%

Source: Goldman Sachs

29. Marathon

Ticker: MRO

Subsector: Oil & Gas Exploration & Products

2013 return: 18%

Consensus 2014 earnings growth: 3%

Return vs. sector: -8%

Source: Goldman Sachs

28. Edison

Ticker: EIX

Subsector: Electric Utilities

2013 return: 5%

Consensus 2014 earnings growth: 1%

Return vs. sector: -8%

Source: Goldman Sachs

27. Wal-Mart

Ticker: WMT

Subsector: Hypermarkets & Super Centres

2013 return: 18%

Consensus 2014 earnings growth: 9%

Return vs. sector: -8%

Source: Goldman Sachs

26. PG&E

Ticker: PCG

Subsector: Multi-Utilities

2013 return: 5%

Consensus 2014 earnings growth: 13%

Return vs. sector: -9%

Source: Goldman Sachs

25. Entergy Corp

Ticker: ETR

Subsector: Electric Utilities

2013 return: 4%

Consensus 2014 earnings growth: 2%

Return vs. sector: -9%

Source: Goldman Sachs

24. Hospira

Ticker: HSP

Subsector: Pharmaceuticals

2013 return: 32%

Consensus 2014 earnings growth: 4%

Return vs. sector: -9%

Source: Goldman Sachs

22. Cisco Systems

Ticker: CSCO

Subsector: Communications Equipment

2013 return: 17%

Consensus 2014 earnings growth: 1%

Return vs. sector: -12%

Source: Goldman Sachs

20. Juniper Networks

Ticker: JNPR

Subsector: Communications Equipment

2013 return: 15%

Consensus 2014 earnings growth: 13%

Return vs. sector: -14%

Source: Goldman Sachs

19. Apache Corp.

Ticker: APA

Subsector: Oil & Gas Exploration & Products

2013 return: 11%

Consensus 2014 earnings growth: -11%

Return vs. sector: -15%

Source: Goldman Sachs

18. Noble Corp.

Ticker: NE

Subsector: Oil & Gas Drilling

2013 return: 10%

Consensus 2014 earnings growth: 49%

Return vs. sector: -15%

Source: Goldman Sachs

17. Exelon Corp.

Ticker: EXC

Subsector: Electric Utilities

2013 return: -3%

Consensus 2014 earnings growth: -10%

Return vs. sector: -17%

Source: Goldman Sachs

16. Abbott Laboratories

Ticker: ABT

Subsector: Health Care Equipment

2013 return: 24%

Consensus 2014 earnings growth: 11%

Return vs. sector: -17%

Source: Goldman Sachs

15. Ford

Ticker: F

Subsector: Automobile Manufacturers

2013 return: 22%

Consensus 2014 earnings growth: -5%

Return vs. sector: -21%

Source: Goldman Sachs

14. CenturyLink

Ticker: CTL

Subsector: Integrated Telecommunication Services

2013 return: -13%

Consensus 2014 earnings growth: -2%

Return vs. sector: -25%

Source: Goldman Sachs

13. Quanta Services

Ticker: PWR

Subsector: Construction & Engineering

2013 return: 16%

Consensus 2014 earnings growth: 17%

Return vs. sector: -25%

Source: Goldman Sachs

12. Stanley Black & Decker

Ticker: SWK

Subsector: Industrial Machinery

2013 return: 12%

Consensus 2014 earnings growth: 10%

Return vs. sector: -29%

Source: Goldman Sachs

11. FirstEnergy Corp.

Ticker: FE

Subsector: Electric Utilities

2013 return: -17%

Consensus 2014 earnings growth: -5%

Return vs. sector: -30%

Source: Goldman Sachs

10. D.R. Horton

Ticker: DHI

Subsector: Homebuilding

2013 return: 13%

Consensus 2014 earnings growth: 18%

Return vs. sector: -30%

Source: Goldman Sachs

9. Deere & Co.

Ticker: DE

Subsector: Construction & Farm Machinery & Heavy Trucks

2013 return: 8%

Consensus 2014 earnings growth: -8%

Return vs. sector: -32%

Source: Goldman Sachs

8. Newfield Exploration

Ticker: NFX

Subsector: Oil & Gas Exploration & Production

2013 return: -8%

Consensus 2014 earnings growth: 5%

Return vs. sector: -33%

Source: Goldman Sachs

7. Target

Ticker: TGT

Subsector: General Merchandise Stores

2013 return: 9%

Consensus 2014 earnings growth: 19%

Return vs. sector: -34%

Source: Goldman Sachs

6. LabCorp

Ticker: LH

Subsector: Health Care Services

2013 return: 5%

Consensus 2014 earnings growth: -3%

Return vs. sector: -36%

Source: Goldman Sachs

5. Jabil Circuit

Ticker: JBL

Subsector: Electronic Manufacturing Services

2013 return: -8%

Consensus 2014 earnings growth: -32%

Return vs. sector: -37%

Source: Goldman Sachs

4. Family Dollar

Ticker: FDO

Subsector: General Merchandise Stores

2013 return: 4%

Consensus 2014 earnings growth: 7%

Return vs. sector: -39%

Source: Goldman Sachs

3. Lennar Corp.

Ticker: LEN

Subsector: Homebuilding

2013 return: 3%

Consensus 2014 earnings growth: 15%

Return vs. sector: -40%

Source: Goldman Sachs

2. Quest Diagnostics

Ticker: DGX

Subsector: Health Care Services

2013 return: -6%

Consensus 2014 earnings growth: 8%

Return vs. sector: -48%

Source: Goldman Sachs

1. Cliffs Natural Resources

Ticker: CLF

Subsector: Steel

2013 return: -30%

Consensus 2014 earnings growth: -34%

Return vs. sector: -56%

Source: Goldman Sachs

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