Upside potential: 47% each
Last year airline stocks took off and never landed. American Airlines (AAL) surged 112% and Delta (DAL) spiked nearly 70% as investors feasted on this suddenly profitable industry. The unexpected plunge in oil prices was just icing on the cake, giving the companies billions in savings.
This year has been a different story with both airlines are down between 8% and 10%, in part due to oil prices stabilizing around $50 a barrel.
But Wall Street remains very bullish on the industry, predicting both American and Delta will grow earnings by double-digits in 2015.
American is sporting a 12-month consensus price target of $70.31, while analysts think Delta will spike to $65.38, according to FactSet. Both of those targets imply a 47% spike from where the airlines are currently trading.
Related: Why flying stinks and you’re still paying more
That may seem “insane” given Tesla’s current valuation of $26 billion, but Wall Street does think the electric car maker is going higher, at least in the short term. It closed last week 25% below consensus price targets.
Sources & methodology
The above list highlights stocks in the S&P 500 and Nasdaq 100 with the highest upside potential. CNNMoney ran a screen on FactSet that calculated the difference between the stock’s closing price on Friday and the consensus price target of many Wall Street analysts for where the stock will be in a year. Companies with a market capitalization below $10 billion were excluded.
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