On the heels of following such stock winners as Sirtex Medical Limited (ASX: SRX) (up 137% in one year) and ResMed Inc (CHESS) (ASX: RMD) (up 34% in one year), fund managers are on the lookout for the next group of high return stocks.
The Australian Financial Review recently asked a number of fund managers what was on their shopping list for 2015. Their replies could form a watchlist for readers or at least a guide as to where to look for above average gains. Investors should always do their own homework before buying any stock- don't just follow professionals.
With that said, what are some of the companies attracting attention as potential 2015 top stocks?
Origin Energy Ltd (ASX: ORG) is an integrated energy company with oil and gas production as well as retail power and gas distribution business. The stock fell about 27% since September. In mid-2015, the Australia Pacific LNG project (APLNG), of which Origin is a joint venture partner, is expected to start exporting LNG to Asia. As LNG revenue begins coming in, oil could rally, potentially giving Origin a one-two earnings boost. Definitely worth following this stock.
Woodside Petroleum Limited (ASX: WPL) is another energy company that could also benefit from a rebound in oil. In addition, it is buying a stake in the Wheatstone LNG project, a project near Chevron's Gorgon project off the WA coast that will start production in 2016. Woodside is looking for more acquisitions while oil prices are down. One big plus for the stock is the huge 6.2% fully franked yield. Income investors will like this one.
Glove and protective wear producer Ansell Limited (ASX: ANN) has large economies of scale as a global business and a market leader position in many of its product categories. Constant use and re-ordering of its protective wear in industries like healthcare keep revenues growing. Only up about 8% in the past twelve months, it just hit a new multi-year high of $23.00 and looks ready to carry on with its previous upward trend.
For yield plays, such infrastructure stocks as Transurban Group (ASX: TCL), the toll road and tunnel owner and operator, were short-listed. It just expanded its toll road portfolio by buying up five of the six toll roads and tunnels in Brisbane through a business consortium. That adds to the major roads it has already in Melbourne and Sydney and increases the potential toll income streams that will flow in over the coming decades. Its PE is 41, but expected earnings growth is strong. It's an attractive long-term pick for Foolish investors.
