Woodside Petroleum Limited
Although the resources sector is enduring a very difficult period, in the long run there will inevitably be winners and losers. One company that could be in the former group is Woodside Petroleum Limited (ASX: WPL). That's because in recent months it has begun to flex its financial muscle and make multiple acquisitions so that, should the oil and gas industry see a return to growth, it will be in a much stronger position than many of its peers.
Clearly, this is a long-term strategy and, in the short run, there is a risk that Woodside's share price could come under further pressure. However, with a significant margin of safety built in to its share price (for example Woodside trades on a price to earnings (P/E) ratio of just 9.4) it seems to be worth buying for the long run, and could deliver a handsome reward for patient investors.
Westpac Banking Corp
For many investors, the present time is one of high uncertainty and worry. After all, the Aussie unemployment rate has spiked to 6.4% and the RBA feels it is necessary to try and stimulate the economy via lower interest rates. As such, relatively stable and consistent stocks such as Westpac Banking Corp (ASX: WBC) could come to the fore and see investor sentiment push their share prices higher.
In fact, in Westpac's case, it has been able to increase earnings per share at an annualised rate of 14.9% during the last five years. That's an extremely impressive result and shows that the bank offers a relatively consistent performance that could continue in 2015 and beyond.
And, with Westpac trading on a P/E ratio of 15.1 (versus 16.2 for the ASX), it still seems to offer good relative value for money, too.
Origin Energy Ltd
Over the last 10 years, Origin Energy Ltd (ASX: ORG) has delivered an annualised total return of 9% which, when you take into consideration that the period has included the global financial crisis, is not bad going. In fact, in terms of capital gains, Origin is up more than twice as much as the ASX during the period, which shows just how appealing its performance has been.
And, looking ahead, this level of performance could continue. That's because Origin offers growth potential at a very reasonable price. For example, it has a price to earnings growth (PEG) ratio of just 0.72 which, on an absolute basis, seems attractive but, when compared to the ASX's PEG ratio of 2.1, appeals to an even greater degree.
As a result of this, as well as its relatively consistent performance in recent years, Origin could provide investors with that rare combination of stability and outstanding growth potential. As such, it could be a stunning performer in 2015 and beyond.
