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

David Kostin, Goldman Sachs’ chief U.S. equity strategist, sees almost no upside to the S&P 500 from now through the end of the year.

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

In his new U.S. Monthly Chartbook, Kostin provided an updated list of stocks with the most upside potential today.

This time around, the list is dominated by oil and gas firms including drillers or refiners.  The rest are ringers across a broad range of industries, from tires to telecom.

According to Goldman’s analysts, the 40 stocks on this list offer 23% to 57% upside relative to their recent prices.

40) Apache

Ticker: APA

Sector: Energy

Recent Price: $73.88

Upside to Target: 23.2%

Apache just set up its third offshore North Sea production site in as many years.

Source: Goldman Sachs, UPI

39) Expedia

Ticker: EXPE

Sector: Online travel

Recent Price: $55.84

Upside to Target: 23.6%

Robust growth in global hotel room nights led to a 24% annual increase in Expedia's Q1 2013 revenues.

Source: Goldman Sachs, Motley Fool

38) Ford

Ticker: F

Sector: Cars

Recent Price: $13.71

Upside to Target: 24.0%

Ford just hired 2,000 people in Kansas City.

Source: Goldman Sachs, USA Today

37) Prudential

Ticker: PRU

Sector: Financial

Recent Price: $60.42

Upside to Target: 24.1%

According to RBC, Prudential just had its best quarter ever. Earnings beat estimates by 42 cents.

Source: Goldman Sachs, NJ.com

36) Alexion

Ticker: ALXN

Sector: Pharmaceuticals

Recent Price: $98.00

Upside to Target: 24.5%

Sales in Alexion's blood disease drug Soliris have now increased on both a quarter-over-quarter and year-over-year basis for 24 straight quarters.

Source: Goldman Sachs, Rep-Am.com

35) Eastman

Ticker: EMN

Sector: Pharmaceuticals

Recent Price: $66.65

Upside to Target: 24.5%

Eastman just boosted its stock buyback plan by $300 million.

Source: Goldman Sachs, Street Insider

34) EMC

Ticker: EMC

Sector: Data storage

Recent Price: $22.43

Upside to Target: 24.8%

EMC's revenues for the first quarter of 2013 hit a record $5.39 billion.

Source: Goldman Sachs, The Register

33) Freeport-McMoRan

Ticker: FCX

Sector: Mining

Recent Price: $30.43

Upside to Target: 24.9%

FCX was just upgraded to 'buy' by Nomura on imminent recovery of copper prices.

Source: Goldman Sachs, Benzinga

32) Eaton

Ticker: ETN

Sector: Electrical infrastructure

Recent Price: $61.41

Upside to Target: 27.0%

Eaton recently acquired rival Copper Industries.

Source: Goldman Sachs, Reuters

31) PerkinElmer

Ticker: PKI

Sector: Life sciences

Recent Price: $30.65

Upside to Target: 27.2%

PerkinElmer continues to possess attractive valuation relative to its peers.

Source: Goldman Sachs, Seeking Alpha

30) Joy Global

Ticker: JOY

Sector: Mining

Recent Price: $56.52

Upside to Target: 27.4%

Joy Global is owned by an enormous number of hedge funds.

Source: Goldman Sachs, Insider Monkey

29) Schlumberger

Ticker: SLB

Sector: Energy

Recent Price: $74.43

Upside to Target: 27.6%

SLB spends more on research and development than all of its competitors combined, and is more geographically diversified.

Source: Goldman Sachs, WSJ

28) Amazon

Ticker: AMZN

Sector: Internet

Recent Price: $253.81

Upside to Target: 28.0%

Amazon has announced expansions of its cloud services unit into Europe.

Source: Goldman Sachs, Business Cloud News

27) Altera

Ticker: ALTR

Sector: Computer hardware

Recent Price: $32.01

Upside to Target: 28.1%

Altera enjoys 'a strong financial position' to make acquisitions, with $3 billion in cash vs. only $500 million in debt.

Source: Goldman Sachs, Motley Fool

26) Newfield Exploration

Ticker: NFX

Sector: Energy

Recent Price: $21.79

Upside to Target: 28.5%

Newfield's domestic liquids production recently rose 9% and net production reached 11.7 million barrels of oil equivalent, which was at the high end of estimates.

Source: Goldman Sachs, Motley Fool

25) Anadarko

Ticker: APC

Sector: Energy

Recent Price: $84.76

Upside to Target: 28.6%

Anadarko just announced a major Gulf of Mexico discovery.

Source: Goldman Sachs, FuelFix

24) Precision Castparts

Ticker: PCP

Sector: Advanced technology parts

Recent Price: $191.29

Upside to Target: 29.1%

Precision recently executed a $750 million share buyback plan.

Source: Goldman Sachs, Precast

23) Pioneer

Ticker: PXD

Sector: Energy

Recent Price: $122.23

Upside to Target: 29.3%

Pioneer is expanding in the highly productive Midland Basin in Texas.

Source: Goldman Sachs, Star Telegram

22) Cabot

Ticker: COG

Sector: Energy

Recent Price: $68.05

Upside to Target: 29.3%

Cabot's Q1 earnings more than doubled on strong growth Marcellus natgas production.

Source: Goldman Sachs, WSJ

21) Qualcomm

Ticker: QCOM

Sector: Telecom

Recent Price: $61.60

Upside to Target: 29.9%

Qualcomm recently raised its dividend to $1.40/share from $1.00/share annually.

Source: Goldman Sachs

20) National Oilwell Varco

Ticker: NOV

Sector: Energy

Recent Price: $65.22

Upside to Target: 30.3%

Varco recently reported $3.04 billion in new orders for its rig technology division, up 24% from the first quarter of 2012.

Source: Goldman Sachs, FuelFix

19) Range Resources

Ticker: RRC

Sector: Energy

Recent Price: $73.52

Upside to Target: 30.6%

Range recently made a bid for fellow Australian driller International Petroleum Ltd.

Source: Goldman Sachs

18) Expeditors International

Ticker: EXPD

Sector: Logistics

Recent Price: $35.93

Upside to Target: 30.8%

Expeditors' Q1 profit increased 5% on growing air freight volume.

Source: Goldman Sachs, Seattle Times

17) Phillips 66

Ticker: PSX

Sector: Refining

Recent Price: $60.95

Upside to Target: 31.3%

Phillips recently signed agreements with pipeline partners that Seeking Alpha says will be 'massively beneficial' to the company.

Source: Goldman Sachs, Seeking Alpha

16) Marathon

Ticker: MRO

Sector: Energy

Recent Price: $32.67

Upside to Target: 31.6%

Marathon recently spun off its exploration business from its refinery unit.

Source: Goldman Sachs

15) Devon Energy

Ticker: DVN

Sector: Energy

Recent Price: $55.06

Upside to Target: 32.6%

Devon's recent cash infusion of $2 billion will be mostly tax-free thanks to delaying its re-shoring.

Source: Goldman Sachs, NewsOK.com

14) salesforce.com

Ticker: CRM

Sector: Customer relationship management

Recent Price: $41.11

Upside to Target: 33.8%

Salesforce will set up its first European data centre next year.

Source: Goldman Sachs, GigaOM

13) Edwards Lifesciences

Ticker: EW

Sector: Biotech

Recent Price: $63.79

Upside to Target: 34.8%

Edwards' reported a Q1 increase in profit of 122% on revenue growth and stronger margins..

Source: Goldman Sachs, RTT

12) Cummins

Ticker: CMI

Sector: Transportation manufacturing

Recent Price: $106.39

Upside to Target: 35.4%

Cummins expects to see moderately improving order trends in on-highway and construction markets in North America.

Source: Goldman Sachs, Inside Indiana Business

11) QEP Resources

Ticker: QEP

Sector: Energy

Recent Price: $28.71

Upside to Target: 35.8%

QEP is boosting assets in North Dakota.

Source: Goldman Sachs, Seeking Alpha

10) Noble Energy

Ticker: NBL

Sector: Energy

Recent Price: $113.29

Upside to Target: 35.9%

Noble recently announced it had drilled Colorado's longest oil and gas well.

Source: Goldman Sachs, BizJournals

9) Goodyear

Ticker: GT

Sector: Parts

Recent Price: $12.50

Upside to Target: 36.1%

Goodyear is opening a new headquarters in Akron, Ohio May 9.

Source: Goldman Sachs, Rubber News

8) Dover

Ticker: DOV

Sector: Advanced manufacturing

Recent Price: $68.98

Upside to Target: 36.3%

Dover has made 25 acquisitions since 2009.

Source: Goldman Sachs, Investor Place

7) Southwestern

Ticker: SWN

Sector: Energy

Recent Price: $37.42

Upside to Target: 36.3%

Southwestern's Q1 profit rose 18% on increased production volume, which offset lower natural gas prices.

Source: Goldman Sachs, Fox News

6) Intuitive Surgical

Ticker: ISRG

Sector: Energy

Recent Price: $492.29

Upside to Target: 38.9%

Intuitive reported higher-than-expected Q1 profit on increased sales of its high priced da Vinci surgical systems.

Source: Goldman Sachs, Reuters

5) Halliburton

Ticker: HAL

Rating: Buy

Sector: Energy

Recent Price: $42.77

Upside to Target: 40.3%

Halliburton is seeing stronger international performance and improved operational efficiencies.

Source: Goldman Sachs, Forbes

4) EOG Resources

3) Nabors

Ticker: NBR

Sector: Energy

Recent Price: $14.79

Upside to Target: 48.7%

Nabors was recently upgraded by Jefferies on improved prospects to sell exploration and production assets.

Source: Goldman Sachs, Benzinga

2) Teradata

Ticker: TDC

Sector: Date services

Recent Price: $51.07

Upside to Target: 48.8%

Teradata says it's seeing momentum in analytics and integrated marketing.

Source: Goldman Sachs, Barron's

1) Marathon Petroleum

Ticker: MPC

Sector: Refining

Recent Price: $78.36

Upside to Target: 57.0%

Marathon just spent $2.2 billion to overhaul its Detroit refinery, and bought a huge facility in Texas City, Texas, from BP Plc as part of a $2.4 billion deal that closed in February.

Source: Goldman Sachs, Toledo Blade

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.