5 “Best of the Best” Stocks for 2015

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Things are setting up nicely for 2015. The news on the economic front has been good, and some economists are thinking about raising their fourth-quarter GDP estimates after solid wholesale trade reports and continuing low levels of jobless claims.

best-of-2014-2015-185Consumers are feeling pretty good as a result of the fall in gas prices that has put additional cash in their wallets.  Corporate earnings are improving, too.

I do not think the Federal Reserve will be in any great hurry to raise rates. So, the zero-rate environment will continue to drive money into the stock market.

Investors should be locked and loaded with the very best stocks as we approach the new year. Here are my top five picks to help you prosper in 2015:

Actavis plc (ACT )

actavis 185Actavis plc (ACT ) is one of the largest generic drug-makers. Actavis has a product portfolio that includes everything from contraceptives and smoking-cessation products to widely used antibiotic drugs. 

In the past few years, Actavis has made some smart acquisitions that are driving solid growth in sales and profits. In the most recent quarter, after adjusting for one-time costs related to the Forest Labs acquisition, Actavis earned $3.19 per share, topping the $3.10 consensus earnings-per-share estimate by 3%.

Meanwhile, net revenue soared 83% year-on-year to $3.68 billion. Analysts were looking for $3.63 billion in revenue. So, Actavis posted a 1.4% sales surprise. The best is yet to come with ACT stock as management guided estimates for next year higher, which suggests that Actavis expects to make between $13.51 and $13.61 per share in 2015.

Portfolio Grader upgraded ACT stock back to an “A” last week, and Actavis is one of my five best ideas for the year ahead.

Gilead Sciences, Inc. (GILD)

Gilead Sciences NASDAQ:GILDGilead Sciences, Inc. (GILD), a biopharmaceutical company, discovers, develops and commercializes human therapeutics for the treatment of life threatening diseases worldwide. Gilead products are used to treat a wide range of conditions including HIV, Hepatititis B, hypertension and influenza.

In October, the Food and Drug Administration approved Gilead Sciences’ new Hepatitis C drug, Harvoni, which is expected to see sales of $1.4 billion in the final quarter of the year.

Analysts are expecting great things form GILD stock next year. Analysts estimated that earnings will increase from the full year expectation of $7.93 or $10.05 next year, and revenues should more than double to $24.32 billion. Those numbers will likely be even higher, and Wall Street has been raising estimates for 2015 since the last GILD earnings report.

Portfolio Grader raised Gilead stock to an “A” by Portfolio Grader this month, and GILD stock should lead the way in 2015.

Pilgrim’s Pride Corporation (PPC) 

pilgrims logoPilgrim’s Pride Corporation (PPC) is not in a really exciting business but is seeing some pretty exciting results. Pilgrim’s Pride is the second-largest chicken producer in the world, supplying a variety of fresh, fully cooked, ready-to-cook and individually frozen chicken. Pilgrim’s Pride has 40 processing plants and can process 36 million chickens per week that are then sold to the foodservice industry, retail and frozen food companies in the U.S., Puerto Rico and Mexico.

Pilgrim’s Pride is also acquiring Tyson Foods, Inc.‘s (TSN) Mexican poultry business for $400 million. The deal is expected to add $650 million to annual revenues, along with three new plants, seven distribution centers and 5,400 employees. 

In the most recent quarter, PPC stock posted net income rose 59.1% to $256 million or 99 cents per share. The consensus earnings estimate called for 79 cents per share. So, Pilgrim’s Pride posted a 25% earnings surprise.

PPC stock has been rated an “A” by Portfolio Grader since July and is a “strong buy” today. Pilgrim’s Pride is a best of the best stock that help propel your portfolio to market-beating gains in the new year.

Southwest Airlines Co (LUV)

Southwest airlines LUV stock to buySouthwest Airlines Co (LUV) operates passenger airplanes that provide scheduled air transportation services in the U.S. I think that Southwest Airlines is by far the most efficient passenger airline in the U.S.

With nearly 700 aircraft in its fleet, Southwest serves 97 destinations across 41 states, Washington, D.C. and Puerto Rico. Southwest also just announced plans to begin service to six new destinations in Latin America including four cities in Mexico (Cancun, Mexico City, Puerto Vallarta, San Jose del Cabo); San Jose, Costa Rica; and Belize City, Belize.

LUV stock’s earnings have been fantastic this year with year-over-year growth of 87%, and Southwest is just going to get better. Earlier this month, Southwest Airlines said that it could save as much as $1 billion thanks to falling crude oil prices.

LUV stock has been a “strong buy” all year and should be a market leader again in 2015 as lower fuel prices and a strengthening economy drive solid sales and profit growth.

Vipshop Holdings Ltd – ADR (VIPS) 

VIPshop.comVipshop Holdings Ltd – ADR (VIPS) is another stock I expect to repeat as a market leader next year. Vipshop works with thousands of well-known brands to offer deep discounts to China’s brand-oriented middle class.

VIPS uses online flash sales to sell a wide range of products including apparel for women, men and children, fashion goods, cosmetics, home goods and lifestyle products, footwear, sporting goods, luxury goods and gifts.

VIPS stock’s results this year have been nothing short of spectacular with earnings growing by 172% so far in 2014. In the most recent quarter, Vipshop revenues surged 130% year-over-year to $882.26 million, topping estimates for $863.12 million. Non-GAAP net income soared 206.8% year over year to $46.3 million, up from $15.1 million.

On top of that, Vipshop also raised estimates for the fourth quarter saying it expects sales growth of 84-87%. Analysts currently expect VIPS to almost triple its bottom-line profits in 2015, which should help Vipshop be a market-beating stock in 2015.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip GrowthEmerging GrowthUltimate GrowthFamily Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2014/12/best-stocks-2015-actavis-act-gilead-sciences-gild-pilgrims-pride-ppc-southwest-airlines-luv-vipshop-vips/.

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