GOLDMAN: Here Are The 40 Cheapest Stocks In The Market

Stocks have reached record highs this year, with the S&P climbing past 1700 for the first time in its history.

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 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.