Delek operates three business units (refining, retail, logistics) but derives more than 70% of its operating income from its refining segment, which has approximately 140 million barrels per day of crude throughput capacity. Delek’s product slate is skewed toward the light end, including motor fuels.
Holders of Delek stock receive a 6.32% dividend, which may or may not remain in place. Raymond James has a $20 price target, while the consensus target is $21.60. Shares closed up almost 5% on Monday at $19.42.
Delta Air Lines
This company consistently has ranked high with Wall Street, and with the summer vacation season not far away, this could be a solid pick now. Delta Air Lines Inc. (NYSE: DAL) and the regional Delta Connection carriers offer service to 334 destinations in 64 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft.
The company has eliminated its dividends to help preserve cash. In addition, Delta is cutting second-quarter 2020 operating expenses by 50% on an 85% decline in capacity and basically halting capital spending in response to the ongoing crisis. With Delta on track to end the second quarter with $10 billion in liquidity, it should have a runway into 2021, even in a zero revenue environment.
The $36 Raymond James price target compares with the $37.07 consensus target. Delta stock was last seen trading at $22.16 a share.
This company is down almost 75% over the past year, but it remains a top large-cap oil services pick across Wall Street. Halliburton Co. (NYSE: HAL) is one of the world’s largest providers of products and services to the energy industry.
The company serves the upstream oil and gas industry throughout the life cycle of the reservoir, from locating hydrocarbons and managing geological data to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.
Halliburton is the second-largest provider of oil services and the number one player in pressure pumping services worldwide. The company’s business always has been dependent on commodity prices. The low price environment triggered by the battle between Saudi Arabia and Russia on oil production has hammered benchmark pricing, and Halliburton has felt the brunt of it. Contrarians that see a path to higher oil prices could make some huge money here.
Shareholders receive an 8.55% dividend, though it could be on the chopping block. Raymond James has set its price target at $12. The consensus target is $11.68, and Halliburton stock closed most recently at $8.91.
This company has benefited over the past couple of years from the strong housing market. Mohawk Industries Inc. (NYSE: MHK) is a leading building products company, manufacturing and selling flooring products such as carpets, rugs, ceramic tile, wood, stone, luxury vinyl tile and vinyl flooring. The company believes it is the world’s largest flooring company, with operations in 10 countries.
The company sells flooring products under the Aladdin, Columbia Flooring, Durkan, Horizon, IVC, Karastan, Mohawk, Pergo, Portico, QuickStep and SmartStrand brands. The Flooring ROW segment provides laminate and hardwood flooring, as well as roofing elements, insulation boards, medium-density fiberboards, chipboards and vinyl flooring products under the IVC, Moduleo, Pergo, Quick-Step and Unilin brands, and it licenses patents related to flooring manufacturers.
The Raymond James price target is $105. The consensus target is $95.57, and Mohawk Industries stock traded up over 6% on Monday to close at $83.74.
These five companies could be big winners if the recovery is V-shaped and sooner rather than later. It is important to remember that all their stocks have seen substantial insider buying recently, which is one of the best indicators for stock investors.
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