SunPower Corporation (SPWR), Whole Foods Market, Inc. (WFM), Delta Air Lines, Inc. (DAL): High Conviction Trades


Analysts were discussing about the pound the table trades yesterday on CNBC and every one had their favorites. One of the analysts had Delta Air Lines, Inc. (NYSE:DAL) as his pick for the pounding trade stock. Whole Foods Market, Inc. (NASDAQ:WFM) and SunPower Corporation (NASDAQ:SPWR) were the other high conviction trades that came up in the discussion.

SunPower Corporation (NASDAQ:SPWR), Whole Foods Market, Inc. (NASDAQ:WFM), Delta Air Lines, Inc. (NYSE:DAL), high conviction trades

The best thing about Delta Air Lines, Inc. (NYSE:DAL), according to the analyst, was that Delta has continued to fly to the upside and that the stock is moving in the right direction. The valuations are incredibly low and the stock as per the analyst can trade a lot higher.

The reason for Whole Foods Market, Inc. (NASDAQ:WFM) being another high conviction trade is that the stock was up at around $65 a share before a few months. Though the stock is pulled in to about $37 per share, it is still exciting as the company is growing and Whole Foods Market, Inc. NASDAQ:WFM) has projected 1200 from under 500 stores it has and so a lot of opportunity there for investors, the analyst considers. The stock has traded up yesterday and closed near $42 mark which definitely supports the theory.

SunPower Corporation (NASDAQ:SPWR) was another high conviction stock and as per the analyst the reason behind that was the commitment made by Warren Buffett that he is going to invest $15 billion. The analyst also mentioned about Buffett doubling the investment so a lot of growth for SunPower Corporation (NASDAQ:SPWR) and another reason being that there is a lot of scope in general for renewable energy sector and SunPower Corporation (NASDAQ:SPWR) has been doing really great where it has gone up by almost 400% in the last 10 months and has a lot of potential going forward. So even at $33 it is really a good stock to buy.

Investors like Lansdowne Partners and Odey Asset Management Group owning about 29 and 12 million shares, respectively might benefit if Delta Air Lines, Inc. (NYSE:DAL)’s stock really goes up as predicted by the analyst and if Whole Foods Market, Inc. (NASDAQ:WFM) really keeps moving up as it has done yesterday, it can also make the investors like Lansdowne Partners who own about 8.6 million shares happy. SunPower Corporation (NASDAQ:SPWR) has got Buffett’s backing and if it trends high as expected, its investors would be benefitted by this. The key investors in it are Empyrean Capital Partners with about 16.9 million shares and Graham Capital Management with about 14 million shares, revealed in the latest round of 13F filings.

Disclosure: None

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