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Stocks have reached record highs this year, with the S&P climbing past 1700 for the first time in its history.
2013-08-07
And Goldman Sachs strategist David Kostin believes the fun isn't about to stop any time soon.
"We forecast a 4% rise through year-end and a 7% return during the next 12 months," he writes in a letter to clients.
Kostin's targets the S&P at 1750 in 6 months and 1825 in 12 months.
Kostin believes earnings growth through 2013 and 2014 will support "a continued market rally."
In his new US Monthly Chartbook, Kostin offers a list of the 40 stocks with the most upside relative to Goldman analysts' price targets.
One stock has the potential to surge 60% before it hits fair value.
40. National Oilwell Varco: 22.6% Upside
REUTERS/Victor Ruiz Garcia
Ticker : NOV
Recent price : $70.17
Upside to target : 22.6%
The energy equipment maker saw a 18.3% YOY jump in quarterly revenue.
Source: Goldman Sachs
39. Bristol-Myers Squibb: 22.6% Upside
Abid Katib/Getty Images
Ticker : BMY
Recent price : $43.24
Upside to target : 22.6%
Shares of the biopharmaceutical company are up over 30% year to date .
Source: Goldman Sachs
38. Applied Materials: 22.6% Upside
REUTERS/Michael Dalder
Ticker : AMAT
Recent price : $16.32
Upside to target : 22.6%
Shares of Applied Materials, a semiconductor manufacturer, have climbed 35% so far in 2013 .
Source: Goldman Sachs
37. Precision Castparts: 22.7% Upside
Ticker : AMAT
Recent price : $16.32
Upside to target : 22.6%
Precision Castparts' Q2 earnings beat last year's by 23% .
Source: Goldman Sachs
36. Schlumberger Ltd: 23.0% Upside
flickr/ezioman
Ticker : SLB
Recent price : $81.33
Upside to target : 23%
SLB, the world's largest oilfield services provider, posted Q2 EPS at $1.15 , beating the consensus estimate of $1.11.
Source: Goldman Sachs
35. Valero Energy Corp: 23.0% Upside
Getty Images
Ticker : VLO
Recent price : $35.77
Upside to target : 23.0%
Shares of the energy company are up 8% year to date .
Source: Goldman Sachs
34. Monsanto Co: 23.5% Upside
Monsanto
Ticker : MON
Recent price : $98.78
Upside to target : 23.5%
The world's largest seed company saw earnings drop 3% on higher seed production costs.
Source: Goldman Sachs
33. QUALCOMM Inc: 23.9% Upside
Pop Culture Geek via Flickr
Ticker : QCOM
Recent price : $64.56
Upside to target : 23.9%
QUALCOMM's revenue grew to $6.24 billion , up 35% from the year-ago quarter.
Source: Goldman Sachs
32. Goodyear Tire & Rubber: 24.3% Upside
Alex Davies
Ticker : GT
Recent price : $18.50
Upside to target : 24.3%
Shares of Goodyear are up nearly 35% in 2013 .
Source: Goldman Sachs
31. Cognizant Tech Solutions: 24.3% Upside
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Ticker : CTSH
Recent price : $72.39
Upside to target : 24.3%
The IT services provider reported Q2 earnings of $1 per share , beating the consensus estimate by 3 cents. The figure was up 22.4% from the year-earlier quarter.
Source: Goldman Sachs
30. EOG Resources: 24.4% Upside
REUTERS/ Vivek Prakash
Ticker : EOG
Recent price : $145.49
Upside to target : 24.4%
EOG is expected to post a rise in earnings for Q2, up to $1.76 a share from $1.16 a year ago.
Source: Goldman Sachs
29. Cerner Corp: 24.5% Upside
Wikimedia Commons
Ticker : CERN
Recent price : $49.00
Upside to target : 24.5%
Shares of Cerner are up 23% year to date .
Source: Goldman Sachs
28. Yahoo! Inc: 24.6% Upside
Sean Gallup/Getty Images
Ticker : YHOO
Recent price : $28.09
Upside to target : 24.6%
Yahoo! revenues were a slight miss in Q2, at $1.07 billion versus $1.08 billion expected by analysts
Source: Goldman Sachs
27. General Motors: 25.5% Upside
REUTERS/John F. Martin
Ticker : GM
Recent price : $35.87
Upside to target : 25.5%
Shares of GM are up over 25% in 2013 .
Source: Goldman Sachs
26. First Solar: 26% Upside
First Solar
Ticker : FSLR
Recent price : $49.22
Upside to target : 26.0%
Shares of First Solar tanked after it reported earnings.
Source: Goldman Sachs
25. Newfield Exploration: 26.0% Upside
Justin Sullivan/Getty Images
Ticker : NFX
Recent price : $24.60
Upside to target : 26.0%
Lower gas volume has hit Newfield, with Q2 earnings of 37 cents per share down nearly 40% from the year-earlier profit of 61 cents per share.
Source: Goldman Sachs
24. Estee Lauder: 26.4% Upside
Estée Lauder
Ticker : EL
Recent price : $65.65
Upside to target : 26.4%
The cosmetics retail company is set to up its presence in Africa in an effort to capture the regions growing middle class.
Source: Goldman Sachs
23. Anadarko Petroleum: 26.5% Upside
Anadarko
Ticker : APC
Recent price : $88.52
Upside to target : 26.5%
Shares of the oil company are up nearly 20% year to date .
Source: Goldman Sachs
22. Crown Castle Intl: 26.7% Upside
AP
Ticker : CCI
Recent price : $70.25
Upside to target : 26.7%
Crown Castle's Q2 revenue increased 25.6% YOY to $734.9 million , above consensus estimates.
Source: Goldman Sachs
21. Nabors Industries: 26.7% Upside
http://www.nabors.com/Public/index.asp
Ticker : NBR
Recent price : $15.39
Upside to target : 26.7%
The land-driller missed earnings estimates in Q2, with EPS at 8 cents .
Source: Goldman Sachs
20. Phillips 66: 26.8% Upside
Wikimedia
Ticker : PSX
Recent price : $61.50
Upside to target : 26.8%
Phillips' parent, ConocoPhillips, spun off the refining and sales business into a separate publicly traded company in 2012. PSX is up about 5% year to date.
Source: Goldman Sachs
19. Vulcan Materials: 27.2% Upside
Official U.S. Navy Imagery/Flickr
Ticker : VMC
Recent price : $47.18
Upside to target : 27.2%
Vulcan posted earnings at 23 cents per share last quarter , better than the year-earlier quarter loss of 13 cents. At $738.7 million, total revenue surpassed the consensus estimate by 4.6%.
Source: Goldman Sachs
18. Noble Corp. 28.3% Upside
Robert Libetti/ Business Insider
Ticker : NE
Recent price : $38.20
Upside to target : 28.3%
Noble's EPS increased 6.78% to $0.63 in Q2 versus $0.59 in the year-ago quarter. Revenue spiked 13.47% from the year-earlier quarter to $1.02 billion.
Source: Goldman Sachs
17. Wyndham Worldwide: 28.4% Upside
http://www.wyndhamworldwide.com/about-wyndham-worldwide/wyndham-hotel-group
Ticker : WYN
Recent price : $62.30
Upside to target : 28.4%
Shares of Wyndham are up 14% year to date .
Source: Goldman Sachs
16. Wynn Resorts: 29.2% Upside
Courtesy of Encore Las Vegas
Ticker : WYNN
Recent price : $133.13
Upside to target : 29.2%
Wynn notched $1.33 billion in revenue last quarter , a 6.3% spike over the prior year (but just short of analyst expectations of $1.34 billion).
Source: Goldman Sachs
15. Noble Energy: 29.6% Upside
Christos Avraamides/PIO/AFP
Ticker : NBL
Recent price : $62.49
Upside to target : 29.6%
Noble Energy is up 25% so far in 2013 .
Source: Goldman Sachs
14. Cameron Intl: 29.8% Upside
CameronInternational via YouTube
Ticker : CAM
Recent price : $59.30
Upside to target : 29.8%
The Houston-based company came out with an EPS of 79 cents last quarter , beating estimates by a penny. Quarterly revenue is up 18% year over year.
Source: Goldman Sachs
13. Broadcom Corp: 30.6% Upside
Flickr / oskay
Ticker : BRCM
Recent price : $27.57
Upside to target : 30.6%
Broadcom recently saw its biggest drop since October 2007, tumbling 15% on July 24 on the news that quarterly sales were below expectations.
Source: Goldman Sachs
12. Ensco: 30.8% Upside
REUTERS/ Vivek Prakash
Ticker : ESV
Recent price : $57.34
Upside to target : 30.8%
Ensco reported earnings at $1.55 a share , surpassing estimates of $1.50. Total revenue grew by 16.5% from the year-ago quarter.
Source: Goldman Sachs
11. Ryder System: 31.0% Upside
Rob Wile/Business Insider
Ticker : R
Recent price : $61.84
Upside to target : 31.0%
Shares of Ryder systems are up 25% year to date .
Source: Goldman Sachs
10. Southwestern Energy: 31.5% Upside
REUTERS/Jim Urquhart
Ticker : SWN
Recent price : $38.79
Upside to target : 31.5%
Southwestern beat on earnings and revenue. Q2 revenue rose 42.2% to $862.0 million from the year-earlier figure of $606.1 million.
Source: Goldman Sachs
9. Expedia: 31.6% Upside
Expedia
Ticker : EXPE
Recent price : $47.13
Upside to target : 31.6%
At an EPS of $0.51 , Expedia missed estimates last quarter, and it sent its stock price tumbling.
Source: Goldman Sachs
8. Devon Energy Corp: 32.7% Upside
Heinz-Peter Bader/Reuters
Ticker : DVN
Recent price : $55.01
Upside to target : 32.7%
Analysts are predicting earnings at $3.85 per share and revenue at $10.30 billion for the fiscal year, according to Forbes.
Source: Goldman Sachs
7. Halliburton: 32.8% Upside
Wikimedia Commons
Ticker : HAL
Recent price : $45.19
Upside to target : 32.8%
Shares of the oilfield services company are up 28% year to date .
Source: Goldman Sachs
6. Simon Property Group: 33.1% Upside
Wikimedia Commons
Ticker : SPG
Recent price : $160.06
Upside to target : 33.1%
SPG beat Q2 earnings estimates, with total revenue up 4.1% from the year-ago quarter.
Source: Goldman Sachs
5. American Tower Corp: 34.2% Upside
Wikimedia Commons
Ticker : AMT
Recent price : $70.79
Upside to target : 34.2%
Famed Muddy Waters head Carson Block has called out AMT for possible fraud in its appraisal of towers in Brazil.
Source: Goldman Sachs
4. salesforce.com inc: 37.1% Upside
Wikimedia Commons
Ticker : CRM
Recent price : $43.75
Upside to target : 37.1%
In case you missed it, Salesforce.com's stock has shot up more than 400% since 2009 .
Source: Goldman Sachs
3. Ventas Inc: 38.4% Upside
Christopher Furlong/Getty Images
Ticker : VTR
Recent price : $65.74
Upside to target : 38.4%
Ventas announced Q2 normalized funds from operations (FFO) per share at $1.01 , missing consensus estimates by a penny.
Source: Goldman Sachs
2. Autodesk Inc: 41.3% Upside
Glassdoor
Ticker : ADSK
Recent price : $35.39
Upside to target : 41.3%
Autodesk is a great stock to play Europe's recovery , according to Barron's.
Source: Goldman Sachs
1. Marathon Petroleum: 63.6% Upside
Marathon Petroleum Corp
Ticker : MPC
Recent price : $73.33
Upside to target : 63.6%
The oil company beat estimates, with revenues of $25.7 billion (up 26.9% YOY).
Source: Goldman Sachs
How about some bad stocks?
REUTERS/Fabrizio Bensch
