In this article, we will be taking a look at 5 S&P 500 stocks with the most upside. To read our detailed analysis of these stocks and their projected growth, you can go directly to see the 10 S&P 500 Stocks With The Most Upside.
5. Delta Air Lines, Inc. (NYSE:DAL)
Number of Hedge Fund Holders: 49
Share Price as of October 24: $32.58
Delta Air Lines, Inc. (NYSE:DAL) is a provider of scheduled air transportation in the US and internationally. The company is based in Atlanta, Georgia.
Cowen’s Helane Becker upgraded Delta Air Lines, Inc. (NYSE:DAL) on October 14 from Market Perform to Outperform, and placed a $54 price target on the stock.
This October Delta Air Lines, Inc. (NYSE:DAL) reported that it had topped expectations in the third quarter with a $695 million profit. The company’s revenue was up by 11%, while its operating income was $1.5 billion on an operating margin of 10.4%
Out of 895 hedge funds tracked in the second quarter, 49 funds were long Delta Air Lines, Inc. (NYSE:DAL). Their total stake value was $887.3 million.
Miller Value Partners, an investment management company, mentioned Delta Air Lines, Inc. (NYSE:DAL) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Delta Air Lines, Inc. (NYSE:DAL) ($29.42) is a high-quality airline (yes, there really is such a thing!). It didn’t issue any equity in the pandemic. It focuses on delivering a superb customer experience and has brand loyalty (including a stable revenue stream from partner American Express, growing at 20%/ year). Maybe the best evidence: it’s managed to outperform the S&P 500 over the past decade despite a horrible pandemic ending point (+13.2% vs. 11.7%1 ). It trades for 4x 2024 earnings! If it eventually trades at Southwest’s historical valuation, it implies this stock should double as well.”
4. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 51
Share Price as of October 24: $141.32
The Boeing Company (NYSE:BA) is an aerospace and defense company. It develops commercial jetliners, military aircraft, satellites, missile defense, and human space flight and launch systems.
A Positive rating was reiterated on shares of The Boeing Company (NYSE:BA) on October 12 by analyst Charles Minervino at Susquehanna. The analyst also holds a $192 price target on the stock.
This October, The Boeing Company (NYSE:BA) announced that its airplane deliveries rose to 51 airplanes in September, compared to 35 planes the month before. The stock gained 1% in light of the announcement.
The Boeing Company (NYSE:BA) was found among the 13F holdings of 51 hedge funds in the second quarter, and 52 hedge funds in the previous quarter. Their total stake values were $1.5 billion and $1.4 billion, respectively.
Meridian Funds, managed by ArrowMark Partners, mentioned The Boeing Company (NYSE:BA) in its second-quarter 2022 investor letter. Here’s what the firm said:
“We similarly remained invested in largely out-of-favor The Boeing Company (NYSE:BA), a global leader in developing and producing commercial jet aircraft. Due to some self-inflicted wounds and a bit of bad luck, as well as dramatic declines in air travel early in the pandemic, investor sentiment for this company has simply been awful. As part of our contrarian thinking, however, we view the business as critical to global transportation needs and see multiple catalysts to improve sentiment. In addition to the current surge in air travel worldwide, ramped up production of the 737 MAX aircraft and the pending restart of 787 Dreamliner deliveries should help turn broader sentiment. Additionally, we anticipate a meaningful inflection in cash flow as Boeing starts delivering aircraft currently in storage as well as the eventual expansion of its production in both core platforms.”
3. Caesars Entertainment Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 59
Share Price as of October 24: $39.61
Caesars Entertainment Inc. (NASDAQ:CZR) is a casino and gaming company operating in the US. It is based in Reno, Nevada.
Bank of America analysts hold a Buy rating on Caesars Entertainment Inc. (NASDAQ:CZR) shares as of September 27, alongside a $75 price target.
Caesars Entertainment Inc. (NASDAQ:CZR) was among the biggest gainers in the S&P 500 this October, rising 6.15% on October 17. Stifel holds a Buy rating and $63 price target on the stock as well.
In total, 59 funds were long Caesars Entertainment Inc. (NASDAQ:CZR) in the second quarter, with a total stake value of $928.5 million.
2. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 69
Share Price as of October 24: $56.05
Micron Technology, Inc. (NASDAQ:MU) is an information technology company that develops memory and storage products. The company is based in Boise, Idaho.
Loop Capital’s Charles Park initiated coverage of Micron Technology, Inc. (NASDAQ:MU) shares on October 13 with a Buy rating and a $70 price target.
In the fiscal fourth quarter of 2022, Micron Technology, Inc. (NASDAQ:MU) had an EPS of $1.45, beating estimates by $0.08. The company’s revenue was $6.64 billion.
There were 69 hedge funds long Micron Technology, Inc. (NASDAQ:MU) in the second quarter, with a total stake value of $2.2 billion. In comparison, 78 funds were long the stock in the previous quarter, with a total stake value of $3.4 billion.
Claret Asset Management, an asset management firm, mentioned Micron Technology, Inc. (NASDAQ:MU) in its third-quarter 2022 investor letter. Here’s what the firm said:
“Inflation is still higher than interest rates… not an incentive to save for most people. Either inflation must come down or interest rates have to go up further. Or both. And probably both. Now that they are taking the punch bowl away and the party is over, what happens next? For whatever reason, the stock market seems to always precede the economic reality: Micron reached a high of $98.45 on January 5th, 2022 and is trading at $50.00 today.”
1. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 75
Share Price as of October 24: $35
General Motors Company (NYSE:GM) is an automobile manufacturer that designs trucks, crossovers, cars, and automobile parts and accessories. The company operates in North America, the Asia Pacific, the Middle East, Africa, South America, the US, and China.
A Buy rating was reiterated on shares of General Motors Company (NYSE:GM) on September 28 by Itay Michaeli at Citigroup. The analyst also placed a $78 price target on the stock.
This October, General Motors Company (NYSE:GM) reported a 24% increase its in US sales, year-over-year. The company benefitted from pent-up customer demand and higher availability of semiconductor supplies.
Our hedge fund data shows 75 hedge funds long General Motors Company (NYSE:GM) in the second quarter. Their total stake value was $3.4 billion.
Diamond Hill Capital, an investment advisor, mentioned General Motors Company (NYSE:GM) in its second-quarter 2022 investor letter. Here’s what the firm said:
“Auto manufacturer General Motors Company (NYSE:GM)s was also among our bottom contributors in Q2. Rising interest rates and continued supply chain issues have increased uncertainty surrounding the auto industry, exerting downward pressure on stocks of auto makers. We continue to like GM’s focus on its most profitable market segments (SUV, crossovers, trucks) and believe the company’s heavy investments in autonomous capabilities will position it favorably as the secular movement towards autonomous vehicles continues.”
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