GOLDMAN: These Are The 18 Most Undervalued Stocks In The Market

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David Kostin,

Goldman Sachs’ chief U.S. equity strategist, provides us with a list of stocks with the most upside potential in his new Monthly Chartbook.Kostin notes early May was solid for the S&P 500, but cited month-end drags in telecom services and utilities (-7 and -9 per cent, respectively). 

Nevertheless, he projects the S&P will end up 7.3% by year end, at 1750.

Like last time, the list of undervalued stocks is dominated by the energy industry. You’ll find some healthcare and tech picks in there too.

18. Anadarko Petroleum: 28.0% Upside

Ticker: APC

Sector: Energy

Recent Price: $87.47

Upside to Target: 28.0%

Investors are feeling good about Anadarko, but last month it experienced a strange flash crash that took the stock from $90 to one cent. The NYSE canceled all rogue, glitchy trades 'below $87.56 between 15:59:59 and 16:00:00.'

Source: Goldman Sachs, MarketWatch

17. Devon Energy: 28.4% Upside

Ticker: DVN

Sector: Energy

Recent Price: $56.85

Upside to Target: 28.4%

Devon will pay a third-quarter dividend of $0.22 per share, the same amount it paid shareholders the previous quarter.

Source: Goldman Sachs, Daily Finance

16. Pioneer: 29.1% Upside

Ticker: PXD

Sector: Energy

Recent Price: $138.68

Upside to Target: 29.1%

As of March, the company is valued at approximately $22 billion.

Source: Goldman Sachs, Seeking Alpha

15. Amgen Inc: 29.3% Upside

Ticker: AMGN

Sector: Healthcare

Recent Price: $100.53

Upside to Target: 29.3%

Amgen's stock has soared 44% over the last year.

Source: Goldman Sachs, Fool.com

14. Schlumberger Ltd: 30.1% Upside

Ticker: SLB

Sector: Energy

Recent Price: $73.03

Upside to Target: 30.1%

With a market cap of nearly $100 billion, SLB is the largest oil and gas equipment and service company in the world.

Source: Goldman Sachs, Seeking Alpha

13. Precision Castparts: 30.9% Upside

Ticker: PCP

Sector: Industrial Goods

Recent Price: $213.92

Upside to Target: 30.9%

PCP is Oregon's only Fortune 500 company besides Nike. Precision Castparts workers voted 1,258 to 932 to not join the Machinists union.

Source: Goldman Sachs, KTVL

12. Cameron Intl: 31.4% Upside

Ticker: CAM

Sector: Basic Materials

Recent Price: $60.87

Upside to Target: 31.4%

CAM recently came in at #10 in a study of analyst recommendations for the underlying components of the S&P.

Source: Goldman Sachs, KTVL

11. Autodesk Inc: 32.5% Upside

Ticker: ADSK

Sector: Technology

Recent Price: $37.73

Upside to Target: 32.5%

Autodesk is benefiting from its exposure to the booming 3D printing market.

Source: Goldman Sachs, Daily Finance

10. Joy Global: 33.1% Upside

Ticker: JOY

Sector: Mining

Recent Price: $54.08

Upside to Target: 33.1%

Joy Global certainly has that global outlook, with facilities in six continents and more than 20 countries.

Source: Goldman Sachs, CNBC

9. Noble Energy: 33.6% Upside

Ticker: NBL

Sector: Energy

Recent Price: $57.65

Upside to Target: 33.6%

Noble Energy recently announced it will begin drilling for natural gas off the coast of Cyprus.

Source: Goldman Sachs, Reuters

8. Southwestern Energy: 35.3% Upside

Ticker: SWN

Sector: Energy

Recent Price: $37.69

Upside to Target: 35.3%

Southwestern announced it closed a recent acquisition of land from rival Chesapeake Energy Corporation.

Source: Goldman Sachs, MarketWatch

7. Wyndham Worldwide: 35.9% Upside

Ticker: WYN

Sector: Services

Recent Price: $58.12

Upside to Target: 35.9%

WYN recently announced a cash dividend of $0.29 per share on its common stock.

Source: Goldman Sachs, Hospitality Industry News

6. Nabors: 37.4% Upside

Ticker: NBR

Sector: Energy

Recent Price: $16.01

Upside to Target: 37.4%

It's not all good news at Nabors. At their annual meeting earlier this week, shareholders nixed the company's executive-compensation plan and rejected the reelection of two directors.

Source: Goldman Sachs, WSJ

5. Intuitive Surgical: 37.5% Upside

Ticker: ISGR

Sector: Healthcare

Recent Price: $497.53

Upside to Target: 37.5%

The company released quarterly earnings data in April, notching a revenue of $611.40 million, beating the consensus estimate.

Source: Goldman Sachs, Zolmax

4. EOG Resources: 40.2% Upside

Ticker: EOG

Sector: Energy

Recent Price: $129.10

Upside to Target: 40.2%

Last month Oppenheimer was high on EOG, saying it has led the way in liquids production growth over the last three years.

Source: Goldman Sachs, Marketwatch

3. Salesforce.com: 41.7% Upside

Ticker: CRM

Sector: Customer relationship management

Recent Price: $42.33

Upside to Target: 41.7%

Salesforce named former Oracle Corp. executive Keith Block its new president and vice chairman.

Source: Goldman Sachs, WSJ

2. Halliburton: 43.4% Upside

Ticker: HAL

Rating: Buy

Sector: Energy

Recent Price: $41.85

Upside to Target: 43.4%

Continued association with the BP oil spill settlement may be holding the shares back, offering investors an undervalued stock with growth potential.

Source: Goldman Sachs, Seeking Alpha

1. Marathon: 49.1% Upside

Ticker: MRO

Sector: Energy

Recent Price: $82.50

Upside to Target: 49.1%

Shareholders were paid a dividend of $0.35 per share last month.

Source: Goldman Sachs, People's Post

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