GOLDMAN: Here are the 13 cheapest stocks in the market

The S&P 500 gained a meager 4 points in the first half of 2015, effectively delivering a 0% return for investors.

Goldman Sachs’s David Kostin, however, sees better gains ahead.

“We expect S&P 500 will return 6% during the next 12 months (4% price, 2% dividends),” Kostin said.

In a new report, Kostin identified the 40 stocks in the market offering the most upside relative to Goldman Sachs analysts’ price targets.

We’ve ranked the 13 stocks with possible upsides of over 35%. Find them below, listed from least to most potential.

13. Mead Johnson Nutrition

Ticker: MJN

Industry: Non-Cyclical Consumer Goods and Services, Baby Food

Price as of June 30: $US90.22

Upside to Target: 35.2%

Executive's Outlook: 'We look forward to another year of solid sales and earnings growth, despite the tougher global macroeconomic climate,' Kasper Jakobsen, President, CEO and Director

Source: Goldman Sachs

12. Cabot Oil & Gas

Ticker: COG

Industry: Energy, Oil and Gas Exploration and Production

Price as of June 30: $US31.54

Upside to Target: 36.3%

Executive's Outlook: 'Cabot delivered an impressive operational performance in the first quarter, highlighted by the 15 per cent sequential growth in daily production volumes over the fourth quarter of last year,' Dan O. Dinges, CEO

Source: Goldman Sachs

11. Vulcan Materials

Ticker: VMC

Industry: Basic Materials, Construction Materials

Price as of June 30: $US83.93

Upside to Target: 37.0%

Executive's Outlook: ' Although demand for our products remains well below normal levels, the gradual recovery in construction activity continues across most of our markets,' Tom Hill, President and CEO

Source: Goldman Sachs

10. Pioneer Natural Resources

Ticker: PXD

Industry: Energy, Oil and Gas Exploration and Production

Price as of June 30: $US138.69

Upside to Target: 39.9%

Executive's Outlook: 'We are also achieving significant cost reductions and efficiency gains, which are resulting in improved margins and returns,' Scott D. Sheffield, Chairman and CEO

Source: Goldman Sachs

9. Chesapeake Energy

Ticker: CHK

Industry: Energy, Oil and Gas Exploration and Production

Price as of June 30: $US11.17

Upside to Target: 43.2%

Executive's Outlook: 'During this challenging commodity price environment, our talented employees and high-quality assets are delivering competitive, differential performance,' Doug Lawler, CEO

Source: Goldman Sachs

8. Mattel Inc.

Ticker: MAT

Industry: Cyclical Consumer Goods and Services, Toys and Juvenile Products

Price as of June 30: $US25.69

Upside to Target: 44.0%

Executive's Outlook: 'While we still have a lot of work to do, we're starting to see progress with our core brands like Barbie and Fisher-Price, and I am confident we are making the changes necessary to perform better in the future,' Christopher Sinclair, CEO

Source: Goldman Sachs

7. Autodesk Inc.

Ticker: ADSK

Industry: Technology, Application Software

Price as of June 30: $US50.08

Upside to Target: 45.8%

Executive's Outlook: 'Considering the current economic environment, coupled with persistent foreign currency headwinds, we've adjusted our business outlook for the fiscal year as we look to build on the early successes of our model transition,' Scott Herren, CFO

Source: Goldman Sachs

5. Wynn Resorts, Limited

Ticker: WYNN

Industry: Cyclical Consumer Goods and Services, Casinos

Price as of June 30: $US98.67

Upside to Target: 47.0%

Executive's Outlook: ' But the fundamental health of the company is perfect and without question, and my intention is to keep it that way, without any qualification to that statement,' Steve Wynn, Chairman and CEO

Source: Goldman Sachs

3. Western Digital

Ticker: WDC

Industry: Technology, Storage Devices

Price as of June 30: $US78.42

Upside to Target: 55.6%

Executive's Outlook: 'We continue to carefully balance the management of short term market dynamics with a strong focus on long term value creation,' Steve Milligan, President and CEO

Source: Goldman Sachs

2. Keurig Green Mountain

Ticker: GMCR

Industry: Non-Cyclical Consumer Goods, Coffee and Tea

Price as of June 30: $US76.63

Upside to Target: 73.6%

Executive's Outlook: 'We remain highly confident in our long term strategy for the Keurig hot system and continue to believe there is a significant runway of opportunity,' Brian Kelley, President and CEO

Source: Goldman Sachs

1. Southwest Airlines

Ticker: LUV

Industry: Industrials, Regional Airlines

Price as of June 30: $US33.09

Upside to Target: 75.3%

Executive's Outlook: 'We remain steadfast in our unwavering commitment to preserve our financial strength, provide job security for our Employees, protect our low fare brand, and deliver adequate returns to our Shareholders,' Gary Kelly, President and CEO

Source: Goldman Sachs

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