The S&P 500 has gained 7% so far this year.
Despite what has been a 200% rally in the market since early 2009, Goldman Sachs' David Kostin believes the S&P still has the ability to go from 1,960 today to 2,050 by the end of the year. From there, Kostin sees it going to 2,200 by the end of 2016.
While further gains in the market are likely to be modest, some stocks are certainly going to outperform others.
Kostin's new quarterly chartbook includes a list of 40 stocks offering the most upside relative to Goldman Sachs analysts' price targets.
There are a significant number of oil and gas companies including Halliburton, Cabot and Alcoa inc. Also on this quarter's list of the stocks with the biggest upside are tech high-flyers like Amazon and salesforce.com.
40. Dow Chemical
Ticker: DOW
Price as of September 30: $52.44
Upside to target: 24.0%
Comment: The company reported $0.74 per share on an adjusted basis in the second quarter, a 16% year-over-year gain.
Source: Goldman Sachs
39. Amazon.com Inc.
Ticker: AMZN
Price as of September 30: $322.44
Upside to target: 24.1%
Comment: “We’ve recently introduced Sunday delivery coverage to 25% of the U.S. population, launched European cross-border Two-Day Delivery for Prime, launched Prime Music with over one million songs, created three original kids TV series, added world-class parental controls to Fire TV with FreeTime, and launched Kindle Unlimited, an eBook subscription service," founder and CEO Jeff Bezos said in Amazon's second quarter earnings statement.
Source: Goldman Sachs
38. Newfield Exploration
Ticker: NFX
Price as of September 30: $37.07
Upside to target: 24.1%
Comment: In July, Newfield Exploration increased its capital investment outlook for 2014 by $100 million to $1.7 billion, reflecting a surge in the pace of their drilling.
Source: Goldman Sachs
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