BOSTON (TheStreet) -- UBS's (UBS) Jonathan Golub, the bank's chief U.S. market strategist, says investors should buy expensive S&P 500 stocks. No, that isn't a typo.

Golub reasons that investors aren't paying enough for a growth premium, so expensive large-cap stocks will outperform the pack if the equity market rallies. This seemingly illogical strategy might just work.

Here are 10 of the most expensive S&P 500 stocks based on forward earnings multiples. They receive terrible ratings from analysts, with low proportions of "buy" ratings. But, they will probably be the first stocks upgraded if economic growth picks up.

10. Regions Financial ( RF) is a commercial, retail and mortgage bank. Its second-quarter loss widened to $277 million, or 28 cents a share, as revenue dropped 16% to $1.9 billion. The gross margin climbed from 4% to 11%. Regions has $7.4 billion of cash and $18 billion of debt. Its stock trades at a book value multiple of 0.5, a sales multiple of 1.2 and a cash flow multiple of 3 -- 60%, 35% and 68% discounts to industry averages. Of analysts following Regions, two advise purchasing its shares, 17 recommend holding and four suggest selling.

Bullish Scenario: Credit Suisse ( CS) offers a price target of $10, implying an advance of 35%.

9. SunTrust Banks ( STI) provides consumer and corporate financial services. SunTrust swung to a second-quarter profit of $12 million from a year-earlier loss, but it remained unprofitable on a per-share basis. Revenue declined 8.8%. The operating margin doubled to 26%. SunTrust has $4.8 billion of cash and $22 billion of debt. Its stock is expensive based on forward earnings, but sells for a book value multiple of 0.6, a sales multiple of 1.4 and a cash flow multiple of 1.5 -- 55%, 20% and 84% discounts to peer averages. Only 26% of analysts rank the stock "buy."

Bullish Scenario: Citigroup ( C) forecasts that SunTrust's stock will gain 30% to $35.

8. Monster Worldwide ( MWW) operates a network of Web sites connecting employers and job seekers. Monster's second-quarter loss doubled to $3 million, or 2 cents a share, as revenue declined 3.7% to $215 million. The operating margin dropped from 2.1% to 0.6%. Monster has $297 million of cash and $50 million of debt. Its stock sells for a forward earnings multiple of 47. However, its book value multiple of 1.5 and sales multiple of 1.8 reflect discounts of 80% and 79% to Internet services industry averages. Just 38% of analysts rate Monster's shares "buy."

Bullish Scenario: SunTrust Robinson Humphrey offers a target of $16, implying 80% upside.

7. Boston Properties ( BXP) is a real estate investment trust with office properties in New York, Washington D.C. and Princeton, N.J. Its second-quarter profit decreased 9% to $61 million, or 44 cents a share, as revenue ascended 3.2% to $403 million. The operating margin extended from 40% to 43%. Boston Properties has $1.7 billion of cash and $7.3 billion of debt. Its stock is expensive based on all relative valuation metrics. Of analysts covering Boston Properties, nine advocate purchasing its shares and 15 recommend holding. None say to sell.

Bullish Scenario: FBR Capital Markets ( FBCM) predicts that the stock will increase 15% to $97.50.

6. Kimco Realty ( KIM) is a REIT that owns neighborhood and community shopping centers. It swung to a second-quarter profit of $25 million, or 3 cents a share, from a year-earlier loss. Revenue expanded 20% to $241 million. The operating margin turned positive. Kimco has $135 million of cash and $4.3 billion of debt. Though expensive based on trailing and forward earnings, Kimco's stock trades at a book value multiple of 1.4, a 39% discount to its REIT peer average. Seven analysts rate it "buy," 13 rate it "hold" and three rank it "sell."

Bullish Scenario: RBC ( RY) values Kimco's stock at $18, suggesting a return of 7%.

5. Salesforce.com ( CRM) sells customer and collaboration management software to businesses. Second-quarter profit decreased 30% to $15 million, or 11 cents a share, as revenue jumped 25% to $394 million. The operating margin contracted from 9.3% to 7.5%. Salesforce.com has $742 million of cash and $461 million of debt. Its stock is expensive based on all value metrics, commanding a forward earnings multiple of 66, a book value multiple of 10 and a cash flow multiple of 38. Still, 20 analysts recommend buying the shares and 15 recommend holding them.

Bullish Scenario: Deutsche Bank ( DB) forecasts that Salesforce.com's stock sill rise 26% to $130.

4. Pulte Group ( PHM) is a homebuilder in the U.S. Pulte swung to a second-quarter profit of $76 million, or 20 cents a share, from a year-earlier loss. Revenue surged 92% to $1.3 billion. The operating margin remained in shallow negative territory. Pulte has $2.8 billion of cash and $4.4 billion of debt. Its stock carries an exorbitant forward earnings multiple of 58, but a book value multiple of 1, a sales multiple of 0.6 and a cash flow multiple of 3.1 -- 52%, 26% and 57% discounts to homebuilding averages. Just 16% of researchers rank the stock a "buy."

Bullish Scenario: Barclays ( BCS) values Pulte's stock at $12, implying that it will gain 46%.

3. AvalonBay Communities ( AVB) is a REIT that develops and owns multi-family communities. Its second-quarter profit more than doubled to $51 million, or 35 cents a share, as revenue stretched 3.8% to $221 million. The operating margin rose from 23% to 32%. AvalonBay has $562 million of cash and $3.9 billion of debt. Its stock trades at a trailing earnings multiple of 137, a forward earnings multiple of 76, a book value multiple of 2.7 and a cash flow multiple of 25 -- sizable premiums to REIT averages. Roughly 26% of analysts advise purchasing the REIT.

Bullish Scenario: KBW ( KBW) predicts that AvalonBay's stock will advance 8% to $117.

2. Equity Residential ( EQR) is another REIT that develops and owns multi-family properties. Its second-quarter net income tumbled 90% to $10 million, but earnings per share fell 33% to 2 cents. Revenue gained 5.2% to $510 million. The operating margin dropped from 27% to 24%. Equity Residential's stock sells for a forward earnings multiple of 162, a book value multiple of 2.8, a sales multiple of 7 and a cash flow multiple of 21 - all premiums to industry averages. Of analysts following Equity, six rate its stock "buy," 17 rate it "hold" and four rank it "sell."

Bullish Scenario: Macquarie ( MQBKY) values Equity's stock at $53, suggesting 8% of upside.

1. Vulcan Materials ( VMC) sells construction aggregates, including sand and asphalt. Vulcan swung to a second-quarter loss of $24 million, or 18 cents a share, from a profit of $22 million, or 14 cents, a year earlier. Revenue inched up 2% to $736 million. The operating margin fell from 9.2% to 5.9%. Vulcan's stock sells for a forward earnings multiple of 243. But, its book value multiple of 1.2 and cash flow multiple of 15 are on par with materials industry averages. Three analysts rate Vulcan's stock "buy", 13 rate it "hold" and two rank it "sell."

Bullish Scenario: UBS ( UBS) forecasts that Vulcan's stock will appreciate 42% to $51.

-- Written by Jake Lynch in Boston.

>To see these stocks in action, visit the 10 Overpriced Stocks portfolio on Stockpickr.

RELATED STORIES:


Become a fan of TheStreet on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

More from Investing

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever