If there's one thing I think is almost certain, it's that the Australian stock market is the place to have your money in 2015.
In its most recent meeting minutes, the Reserve Bank's governor Glenn Stevens indicated that interest rates may need to remain low for a number of years. And while they're currently stuck at 2.5%, there's no reason to suggest they won't go any lower.
While Fairfax media quoted Credit Suisse as saying "we think that the bank needs to cut rates below 2 per cent", Bruce Jackson, General Manager of The Motley Fool Australia, went one step further by suggesting they could even fall as low as 1.5%!
Imagine how much more popular the equity market would become should that happen…
In order to escape from the low yields from bonds and term deposits, investors will turn en masse to the stock market in search of decent returns and juicy, fully franked dividend yields. With the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) having actually retreated 0.2% so far this year, we could certainly be in for a bumper 12-month period.
With that in mind, let's take a look at three companies which could be set for big returns in the New Year…
1. Coca-Cola Amatil Ltd (ASX: CCL)
Coca-Cola Amatil is a company well known to most Australians. With some of the world's most popular brands in its arsenal, there's a very good chance that some of its products have even been allocated a permanent, easy-to-access location in your refrigerator.
While 2013 and 2014 have both been years that shareholders would prefer to forget – with the stock down 41% since its March 2013 peak – 2015 could be the beverage manufacturer's return to form. In an update to its strategic review, management said it expected "a return to mid-single digit growth in earnings per share over the next few years with no further decline expected after 2014". Should its forecasts prove correct, the share price could rally hard from its current $9.17 price tag.
2. Veda Group Ltd (ASX: VED)
Veda Group operates as a monopoly in a vital industry which could be set for strong growth for years to come. With an estimated 85% market share, Veda is a data analytics business which empowers its customers' decision-making capabilities by providing them with credit information.
Veda has an incredible track record for growing revenues and earnings and 2015 should be no different, thanks in large part to the recent introduction of the Comprehensive Credit Reporting regime. In its first set of full-year results as a listed entity, Veda's CEO Nerida Caesar said she expected all business lines to continue performing strongly to deliver "at least double digit EBITDA growth in FY2015 and broadly commensurate growth in NPAT". I have no reason to doubt that, and think the stock is a compelling buy at $2.34.
3. Nearmap Ltd (ASX: NEA)
Nearmap Ltd is a provider of geospatial map technology which is proving incredibly useful amongst businesses, enterprises and government customers in Australia. The company reported its maiden profit in FY14 and its shares have risen an astonishing 1,709% since late 2012.
However, investors shouldn't let that massive return deter them from what could still be an incredible long-term investment, particularly with the company expanding its operations into the United States. At its Annual General Meeting on Thursday, the company said: "To be clear nearmap is a growth company… In both regions, Australia and the US, we are distinctly in the growth phase of the company's life cycle, although we are clearly more progressed in our home market". Having also confirmed that strong momentum has continued on into FY15, Nearmap presents as a fantastic buy at 76 cents.
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As attractive as Coca-Cola Amatil, Veda Group and Nearmap are, there's one more stock which could be an even greater buy for 2015.
