2014 is now in the history books. Although it wasn't a stellar year for the S&P/ASX 200 (ASX: XJO) (Index: ^AXJO), there were still big winners among the large-cap stocks. Some banged out yearly share price gains over 30%.
That's great in any investor's book. Still, the big question is, "How will they perform in 2015?" Will winners keep on winning, or will they go quiet for a while? Here are two of the best performing large-caps and our view of them for 2015. Do you already have them in your portfolio?
Newcrest Mining Limited (ASX: NCM)
The gold miner scored a 36% share price gain in the past twelve months. Gold prices have settled down to around US$1,200/oz recently. It's still unclear whether any rally can be expected soon, but if the general downtrend has stopped, low-cost producer Newcrest begins to look attractive.
The sudden fall in oil prices has sent concerned investors towards gold. It was the first of the major commodities to fall back in 2011, so some market pros are thinking that after oil's severe downturn, gold may be one of the first to rise. That sentiment may lift Newcrest in 2015, so keep it high on your watchlist.
Ramsay Health Care Limited (ASX: RHC)
Australia's largest private hospital operator made some big moves in 2014. Through acquisitions, it became the largest private hospital operator in France, raising its global number of facilities to 226. Financial year 2014 earnings rose about 20% and Ramsay Health Care's stock climbed 33% over the past year.
In financial year 2015, it entered a joint venture with a Chinese healthcare provider to acquire five hospitals in Chengdu, the capital of China's Sichuan province with a population of 14 million. Entering the huge Chinese healthcare sector has enormous possibilities, though it may take time to take root. Still, analyst forecasts are for earnings to grow about 18% annually for the next few years.
The stock is trading at 32 times earnings, so investors are paying a premium for this growth. After a long share price run upwards, I would suggest picking up shares on pullbacks for a better margin of safety.
