GOLDMAN: These Are The 12 Cheapest Stocks In The Market

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The S&P 500 booked a nice 13 per cent return in 2012.For 2013, Goldman Sachs’ equity strategy team expects the index to climb to 1,575 by year-end.

However, they obviously expect some stocks to do better than others.

The firm’s new “US Monthly Chartbook” includes a list of the 40 stocks with the most upside opportunity relative to Goldman analysts’ price targets.

We pulled the top 12 stocks, which offer 30 to 50 per cent upside relative to their recent prices.

12. EOG Resources

Ticker: EOG

Rating: Buy

Recent Price: $125.71

Upside to Target:
32.8 per cent

This oil & gas production company is currently pursuing a new project to increase its onshore output in the U.S..

Source: Goldman Sachs

11. Southwestern Energy

Ticker: SWN

Rating: Buy

Recent Price: $34.27

Upside to Target:
34.2 per cent

Though this energy company reported a net income of $355.6 million or $1.02 per share, compared with $158.5 million or $0.45 per share last year, it has attractive gas assets that could deliver double digit growth.

Source: Goldman Sachs

10. Ford Motor Co.

Ticker: F

Rating: Buy

Recent Price: $12.61

Upside to Target:
34.8 per cent

One of the oldest American automobile companies, Ford recently relaunched its luxury Lincoln brand.

Source: Goldman Sachs

9. Prudential Financial

Ticker: PRU

Rating: Buy

Recent Price: $55.57

Upside to Target:
35 per cent

This financial services company recently reported that it raised its production goal for 2013 to $13 billion.

Source: Goldman Sachs

8. Capital One Financial

Ticker: COF

Rating: Buy

Recent Price: $51.03

Upside to Target:
35.2 per cent

This diversified financial services holding company missed consensus estimates in Q4 2012. Goldman isn't the only firm to think the stock is undervalued.

Source: Goldman Sachs

7. Wynn Resorts Ltd.

Ticker: WYNN

Rating: Buy

Recent Price: $116.90

Upside to Target:
36 per cent

This casino and resort company not only showed expanding profit margins in 2012, it's currently in the process of developing new properties.

Source: Goldman Sachs

6. Goodyear Tire & Rubber

Ticker: GT

Rating: Buy

Recent Price: $12.99

Upside to Target:
38.6 per cent

Even though this tire and rubber company beat fourth quarter earning estimates, its share price slid. Goodyear recently announced that it would cut back on production capacity, which would cut operating costs and improve their profit margin.

Source: Goldman Sachs

5. Intuitive Surgical

Ticker: ISRG

Rating: Buy

Recent Price: $509.89

Upside to Target:
40.2 per cent

This medical equipment maker has seen headwinds to its stock price as the FDA has been looking into the effectiveness of its robotic surgical systems.

Source: Goldman Sachs

4. Alexion Pharmaceuticals

Ticker: ALXN

Rating: Buy

Recent Price: $86.74

Upside to Target:
40.7 per cent

This pharmaceutical company reported a 41 per cent increase in its net product sales for the fourth quarter of 2012.

Source: Goldman Sachs

3. Nabors Industries

Ticker: NBR

Rating: Buy

Recent Price: $16.76

Upside to Target:
43.2 per cent

This oil company recently announced that it would begin to pay a dividend on its stock, starting at the end of March.

Source: Goldman Sachs

2. Halliburton

Ticker: HAL

Rating: Buy

Recent Price: $41.51

Upside to Target:
44.5 per cent

One of the world's top oilfield services firm, Halliburton posted record fourth quarter revenues due to strong performances in the Middle East, Asia and Latin America.

Source: Goldman Sachs

1. Apple Inc.

Ticker: AAPL

Rating: Buy

Recent Price: $441.40

Upside to Target:
49.5 per cent

Apple is reported to be working on a the iWatch. This might revive its stock price, which is currently down more than 35 per cent from its peak.

Source: Goldman Sachs

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