This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Forget Netflix, Delta Has Most Analyst Love for 2014

NEW YORK ( TheStreet) --  Netflix (NFLX - Get Report) may be the best performing S&P 500 stock in 2013, but Delta Airlines (DAL - Get Report) is the one analysts favor for 2014.

All 18 analysts who follow Delta have "buy" recommendations, garnering Delta a score of 4.94 out of 5 on Bloomberg's ranking system. Fifteen of those analysts have 12-month price targets, with the average of those 15 being $33.97. Delta shares were trading at $27.49 for a gain of 1.08% on the day, shortly after Tuesday's open on the final trading day of 2013. That means if Delta were to enter January at its current level and hit analysts' average target by the end of the coming year it would translate to a gain of 23.57% for 2014 excluding dividends.

"Despite DAL's relatively better momentum and lower risk, shares trade at a discount to the sector," argued Bank of America analyst Glenn Engel in a Dec. 17 report.

"Delta is on pace to repurchase $500mn a year in stock, triple initial guidance, and capital returns could go higher when DAL achieves $7bn net debt target in 2015," the report continues, adding that the airline's "underfunded pension liability dropped 30% in 2013 to around $10bn."

Must Read: How TheStreet Tracked 'The Wolf of Wall Street'

Delta shares have returned more than 130% in 2013, fourth best among S&P 500 stocks. By contrast, Netflix, the best performer with shares up some 294% on the year, received only a 2.90 rating from analysts, the 28th worst in the S&P 500.

Just six of the 39 analysts who cover Netflix recommend the stock to investors. Twenty-five have "hold" recommendations, while eight have "sell" ratings. The average price target of $344.92 would represent a 5.66% decline from Tuesday's price of $365.60 in mid-morning trading.

"We continue to believe that Netflix's high valuation is somewhat unwarranted given the potential for slowing domestic growth as early as Q4:13, coupled with increasing content costs," wrote Wedbush analyst Michael Pachter in a Dec. 30 note. Pachter has an "underperform" rating and a $160 price target on Netflix.

NFLX Total Return Price Chart
NFLX Total Return Price data by YCharts

-- Written by Dan Freed in New York.

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DAL $41.67 0.00%
NFLX $90.03 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs