NEW YORK (The Street) -- The top performing stocks this year have netted investors returns of more than 100% but fund managers are divided on their fortunes for 2014.
Netflix (NFLX), Micron (MU), BestBuy (BBY), Delta (DAL), Genworth (GNW), E*Trade (ETFC), Trip Advisor (TRIP), Celgene (CELG),Yahoo! (YHOO), and Western Digital (WDC) are among the S&P 500's star performers for 2013. As the top performer, Netflix has rocketed more than 300% while Micron and BestBuy have jumped more than 200% in a year when the S&P 500 has posted gains of around 24%.
But several stocks on the list provoke caution.
"A lot of them are momentum stocks where their PE multiple was much higher than the market, and there was a lot of excitement in the market this year," Capital Advisors investment manager Channing Smith said in a phone interview. The Tulsa-based manager warned that unless the rally continued apace, high valuations may be difficult to justify. Smith helps oversee $1.2 billion.
Some stocks remain firm fund manager favorites: Delta and Micron are frequently cited as companies with strong market positions and favorable demand backdrops.
Raymond James chief investment strategist Jeffery Saut has a strong "buy" on Micron, and expects Delta and Yahoo! to continue their outperformance.
For Micron, Saut pointed to DRAM pricing normalization and positive commentary from senior executives on a recent conference call. Charlie Smith, chief investment officer at Fort Pitt Capital Group, agreed, noting a strong demand environment for Micron's products and their earnings-accretive Elpida acquisition.