As the saying goes, life is full of surprises.
The investment world is, of course, no different. Indeed, companies that are delivering excellent sales and profit growth can come unstuck due to a whole plethora of reasons.
Similarly, companies for whom the near term looks decidedly uncertain can, in time, prove to be winning investments.
With that in mind, here are three companies that may appear to be struggling, but which could deliver surprisingly strong share price gains in 2015 and beyond.
BHP Billiton Limited
With the price of iron ore having fallen in recent months to now stand at just $76, BHP Billiton Limited (ASX: BHP) is set to report a decline in its bottom line for the full year. Indeed, earnings are due to fall by over 15% in the current year, which is clearly bad news for investors.
However, BHP is in the process of streamlining its business and diversifying into new areas, such as the export of oil in the form of processed condensate from the US. Furthermore, a low cost curve is expected to mean that the business squeezes out higher profit next year, with BHP Billiton's bottom line forecast to grow by over 27%.
The great thing for investors, though, is that the market does not seem to be pricing in such strong growth for next year. If BHP Billiton does meet its guidance for next year, it would mean shares in the company trading on a P/E ratio of just 11.5, which could equate to capital gains over the medium term.
Origin Energy
Iron ore has not been the only commodity posting significant falls this year, with the price of oil declining by as much as 25% from its high. This has undoubtedly affected sentiment in Origin Energy Ltd (ASX: ORG), but perhaps not by quite as much as would normally be expected.
Indeed, shares in Origin are down just 3% in 2014, as the market remains relatively satisfied with the company's growth potential. Much of this stems from its exposure to LNG, for which demand remains very high (especially in Asia) and through which Origin is expected to generate earnings growth of 63% in FY 2016.
Despite such strong growth numbers being on offer, though, the market does not seem to be pricing them in. For example, Origin trades on a PEG ratio of just 0.63, which indicates substantial upside potential over the medium term.
Fortescue Metals Group
Such strong growth is, however, not on the horizon for Fortescue Metals Group Limited (ASX: FMG). Its focus on iron ore means that it is being hard hit by the five-year low in its price, with earnings set to fall in the current year and next year by 68% and 9% respectively.
However, there could still be reason to buy shares in the company. That's because they trade at a valuation that, even with such large falls in earnings, appears to be extremely low. For example, Fortescue currently has a P/E ratio of just 10 and yields a fully franked 5.2%.
Not known as an income stock, Fortescue's current yield shows just how low its share price has fallen. If you're bullish on the long term prospects for iron ore, Fortescue could prove to be a bargain buy at the present time.
