3 stocks that could light up 2015

These 3 stocks could shine in 2015 after a mixed 2014: Insurance Australia Group Ltd (ASX:IAG), Santos Ltd (ASX:STO) and AMP Limited (ASX:AMP).

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2014 has been something of a mixed year for many of the largest companies on the ASX. Indeed, resources stocks have pulled it downward due to lower commodity prices, while an improving global financial outlook has enabled a number of finance stocks to beat the index.

Looking ahead to 2015, though, there continues to be huge potential for strong returns among ASX blue-chips. Certainly, 2014 may not have been the most impressive of years for Aussie investors, but that doesn't mean that 2015 won't be.

With that in mind, here are three stocks that could light up 2015.

Insurance Australia Group Ltd

Having risen by 10% since the turn of the year, shares in Insurance Australia Group Ltd (ASX: IAG) seem to be well placed to continue their strong recent run. Indeed, sentiment has picked up following the company's purchase of the underwriting business of Wesfarmers and, with a fully franked yield of 6%, it could improve even further next year due to continued demand for high-yield stocks.

In addition, IAG is forecast to grow its bottom line by 7.3% next year, which is roughly in-line with the wider market's expected growth rate. However, with IAG still trading on a P/E ratio of just 12.1 even following its recent run, it could be the subject of an upward rerating adjustment over the medium term – especially since the ASX has a P/E ratio of 15.6.

As a result, IAG could be a top performer in 2015 following a hugely encouraging performance in the current year.

Santos Ltd

In contrast to IAG, Santos Ltd (ASX: STO) has endured a miserable year in terms of its share price performance. That's because it is down 18% year-to-date, which is well behind even the ASX's lacklustre 1% gain over the course of the year.

However, even though a lower oil price looks set to remain over the near term, Santos' LNG assets could help to push its share price higher in 2015. Certainly, the company's bottom line is due to head north over the course of the next couple of years, with earnings forecast to rise at an annualised rate of 32.8% over the next two years.

It also has a P/E ratio of 19.6, which equates to a PEG ratio of only 0.6. This indicates that Santos could be on the brink of a much more prosperous period for its investors.

AMP Limited

Like sector peer, IAG, AMP Limited (ASX: AMP) has been a star performer in 2014, with its share price rising by a hugely impressive 30% since the turn of the year. Despite this, shares in the company do not yet appear to be overvalued, since they trade on a P/E ratio of 17.1 which, given the excellent growth prospects that are pencilled in for the next two years, equates to a very appealing PEG ratio of 0.54.

Much of this growth potential comes from the company's exposure to emerging markets such as China, where it recently bought a stake in China Life Pension Company. Indeed, AMP's longer term growth profile seems to be upbeat and it could benefit from the increasing development of a middle class (who go on to demand financial products) across the emerging world.

So, while shares in AMP had a good run in 2014, it could repeat the recent performance in 2015, too.

Motley Fool contributor Peter Stephens does not own shares in any of the companies mentioned.

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