- Flickr / tannaz
Even though Goldman Sachs doesn’t think the market has a lot of room to grow, it does think certain stocks can climb.
David Kostin and his team at Goldman have assembled a list of stocks with the most upside in his new chartbook for the first quarter. These are stocks whose current prices are incredibly low compared to Goldman Sachs’ analysts’ price targets.
We’ve put together the list of the top nine stocks, all with upsides to Goldman’s target above 44%. In addition, we’ve thrown in a comment from executives during their last quarterly earnings call.
Check them out below:
9. NRG Energy
- Bruno Vincent/Getty Images
Industry: Energy, Electric Utilities
Recent Price: $11.77
Upside to Goldman Price Target: 44.4%
Comment: “In truth, in this market environment, I don’t know that I can predict what exactly will cause the stock to turn around and recover to some level that approximates fair value, but I can tell you that NRG’s operational and financial performance has been strong and solidly within expectations,” said CEO David Crane.
- David Silverman/Getty Images
Industry: Basic Materials, Paper Packaging
Recent Price: $45.62
Upside to Goldman Price Target: 46.9%
Comment: “We’re making significant strides in areas that are driving value from the merger, including the integration of our organizations, the realization of the merger-related synergies and performance improvements, the opportunities we have to provide a broad range of paper and packaging solutions to help our customers succeed in their markets,” said CEO Steve Voorhees.
- Thomson Reuters
Industry: Technology, Computer Hardware
Recent Price: $105.26
Upside to Goldman Price Target: 47.3%
Comment: “To put that into some context, our growth in one year was greater than the full year revenue of almost 90% of the companies in the Fortune 500,” said CEO Tim Cook. “We made huge inroads into emerging markets generating over $79 billion in revenue and growing 63% despite very strong headwinds from foreign exchange rates.”
- Screenshot via YouTube
Industry: Cyclical Consumer Goods and Services, Auto and Truck Manufacturers
Recent Price: $14.09
Upside to Goldman Price Target: 49%
Comment: “As we look at the business units, we had our best quarter ever in North America, we are best third quarter at Ford Credit since 2011,” said CEO Mark Fields. “And we have not had a better third quarter in Europe since 2009 and South America improved despite the tougher external conditions that we’re seeing in the marketplace.”
Industry: Cyclical Consumer Goods and Services, Motorcycles and Scooters
Recent Price: $45.39
Upside to Goldman Price Target: 49.8%
Comment: “Moving forward, we’re taking what we’ve learned and are applying it,” said CEO Matthew Levatich. “We continue to refine our investments and sharpen our resolve. And that’s why I’m more confident now than ever in our ability to compete and win.”
4. United Continental
- Getty Images/Scott Olson
Industry: Industrials, Airlines
Recent Price: $57.30
Upside to Goldman Price Target: 50.1%
Comment: “I want to assure you that the United team has never been more unified and committed to the goal of making United great again,” said CEO Brett Hart.
3. Marathon Oil
- Carlos Garcia Rawlins/Reuters
Industry: Energy, Oil and Gas Exploration
Recent Price: $12.59
Upside to Goldman Price Target: 50.9%
Comment: “Our priorities this year has been exercising capital discipline, reducing cost, capturing efficiencies, progressing our non-core asset sales and protecting the balance sheet, and our most recent actions have been fully consistent with those objectives,” said CEO Lee Tillman.
2. Ryder Systems
- Sergi Alexander/Getty Images
Industry: Industrials, Ground Freight and Logistics
Recent Price: $56.83
Upside to Goldman Price Target: 51.3%
Comment: “We experienced a higher than planned number of out-of-service vehicles during the quarter,” said CEO Robert Sanchez. “This occurred because maintenance technicians were supporting new levels of fleet growth across all product lines, while at the same time, we were continuing to drive further productivity within the maintenance organization. We’ve made significant progress on this issue, and expected to be fully resolved this month with no ongoing impact into 2016.”
1. Kinder Morgan
Industry: Energy, Oil and Gas Transportation Services
Recent Price: $14.92
Upside to Goldman Price Target: 54.2%
Comment: “First, we expect to have no need to access the equity market for the foreseeable future, and we have detailed that in our earnings release; second, we expect to substantially reduce our reliance on the debt market; third, we expect to maintain to remain a stable investment grade Company, and in that regard, we’re pleased that post the announcement yesterday afternoon, S&P reaffirmed our stable outlook and Moody’s removed us from a negative outlook returning us to stable; and fourth, we expect to continue to grow our distributable cash flow,” said CEO Rich Kinder.