Goldman Sachs’ (GS) chief equity strategist David Kostin doesn’t see much upside to the S&P 500 through the end of this fiscal year. Elaborating on the point in his most recent U.S. Monthly Chartbook (via BI), Kostin said that despite S&P’s persistent rally, the benchmark index that surged 2% this week and has now gained 14% year-to-date to 1,617, is likely to end the year around the same price level.
However, within the market’s price stagnancy – Kostin sees a good number of undervalued stocks ready to outperform. In fact, Goldman’s analysts speculate that a total of 40 stocks on Kostin’s list, which is dominated by oil, gas and metal manufacturers, offer anywhere from a 23% to a 57% upside relative to their current prices.