GOLDMAN: Here Are The 20 Most Overpriced Stocks In The Market

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Despite all of the uncertainties in the world today, Goldman Sachs’ David Kostin sees the S&P 500 rallying to 1,750 by the end of the year.
But Kostin’s team doesn’t think every stock is a winner.

In his latest US Monthly Chartbook, Kostin provides a list of the 40 stocks with the most downside relative to Goldman analysts’ price targets.

Companies in the IT, Industrials and Materials sectors seem most vulnerable to selling, and the most overvalued stock could potentially fall over 36% to reach its fair value.

We pulled the top 20 from Kostin’s list.

19. Total Systems Services: 15% Downside

Ticker: TSS

Recent Price: $US29.40

Downside: 15%

The company, which processes credit card and merchant payments, announced third quarter dividends of 0.10 a share payable on October 1st.

Source: Goldman Sachs

18. CF Industries Holdings: 15.1% Downside

Ticker: CF

Recent Price: $US215.28

Downside: 15.1%

As nitrogen and and phosphate prices fell, the fertiliser company's profits dropped last quarter.

Source: Goldman Sachs

17. Parker Hannifin: 15.4% Downside

Ticker: PH

Recent Price: $106.50

Downside: 15.4%

As U.S. manufacturing slows, the aerospace company lowered its guidance for the comping quarter.

Source: Goldman Sachs

16. The Progressive Co.: 15.5% Downside

Ticker: PGR

Recent Price: $26.99

Downside: 15.5%

The insurance company reported a 51% year-on-year drop in net income, as premiums from its auto policies dropped.

Source: Goldman Sachs

15. Hospira Inc: 15.9% Downside

Ticker: HSP

Recent Price: $US39.32

Downside: 15.9%

The pharma company expanded globally into India and Europe, with its Inflectra product becoming Europe's first biosimilar monoclonal antibody (mAb) therapy.

Source: Goldman Sachs

14. Microsoft Corp.: 15.9% Downside

Ticker: MSFT

Recent Price: $33.63

Downside: 15.9%

It was an eventful September for Microsoft. The company announced the departure of its CEO Steve Ballmer as well as its acquisition of Nokia's devices and patents businesses.

Source: Goldman Sachs

13. Discovery Communications: 15.9% Downside

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Ticker: DISCA

Recent Price: $80.57

Downside: 15.9%

The company's $US500 million investment into the Oprah Winfrey Network finally began to pay off after four years.

Source: Goldman Sachs

12. Celgene Corp.: 16.3% Downside

Ticker: CELG

Recent Price: $156.08

Downside: 16.3%

The biotech company is scheduled to go ex-dividend on the 8th of this month.

Source: Goldman Sachs

11. The Mosaic Co.: 18.6% Downside

Ticker: MOS

Recent Price: $46.24

Downside: 18.6%

As potash and phosphate sales softened, the company dropped its quarterly sales forecast to to 2.6 to 2.8 million tons from 2.9 to 3.3 million tons.

Source: Goldman Sachs

10. Hewlett-Packard: 19.0% Downside

Ticker: HPQ

Recent Price: $20.98

Downside: 19.0%

The company's fourth quarter forecast missed analyst estimates and it lowered growth forecasts as demand for personal computers and lower business spending has softened.

Source: Goldman Sachs

9. Symantec Corp.: 19.2% Downside

Ticker: SYMC

Recent Price: $25.00

Downside: 19.2%

Morgan Stanley downgraded the Internet security stock to Equal-Weight for lacking near-term catalysts.

Source: Goldman Sachs

8. Micron Technology: 19.9% Downside

Ticker: MU

Recent Price: $18.72

Downside: 19.9%

The semiconductors company's shares surged 57% in the first quarter, and Boston-based hedge fund Baupost bought a $US595 million stake in it soon after.

Source: Goldman Sachs

7. Boston Scientific: 19.9% Downside

Ticker: BSX

Recent Price: $11.66

Downside: 19.9%

As hospitals cut down on spending, demand for medical devices has dropped, causing a drop in sales for producers like Boston Scientific.

Source: Goldman Sachs

6. FMC Corp. : 21.9% Downside

Ticker: FMC

Recent Price: $71.37

Downside: 21.9%

The agricultural chemicals company has traded ex-dividend since late last month on its 0.135 quarterly dividend.

Source: Goldman Sachs

5. Cliffs Natural Resources: 26.8% Downside

Ticker: CLF

Recent Price: $21.25

Downside: 26.8%

The mining company's margins have been impacted by lower iron ore prices.

Source: Goldman Sachs

3. Cablevision Systems: 28.7% Downside

Ticker: CVC

Recent Price: $16.84

Downside: 28.7%

The cable company's shareholders Paulson & Co. and Gamco Investors announced a potential sale of the company in August as its valuation surged to $US4.8 billion.

Source: Goldman Sachs

2. Intel Corp.: 30.2% Downside

Ticker: INTC

Recent Price: $22.85

Downside: 30.2%

The chip-maker announced a quarterly dividend of 22.5 cents per share last month, payable on Dec. 1, 2013.

Source: Goldman Sachs

1. United States Steel: 36.9% Downside

Ticker: X

Recent Price: $21.62

Downside: 36.9%

The steel maker has posted losses over the past four years due to lower steel prices and price competition from imports. It is expected to post a loss of $US188.5 million in 2013.

Source: Goldman Sachs

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