As investors, we're always looking for the next big thing. Certainly, this can come in the form of a new company, or a new product, service or industry. However, sometimes it's the obvious candidates that, when bought at the right price, can become some of the most profitable investments around.
With this in mind, here are three mega caps that although well established, could still deliver stunning share price gains this year.
BHP Billiton Limited
Since the release of its operational update, shares in BHP Billiton Limited (ASX: BHP) have been firmer. That's at least partly because the market seems to be backing the company's decision to cut back oil production, and also split itself into two in the current year, with non-core assets being spun-off to a new entity called South32.
This move seems to be a sensible one that could add shareholder value, and looking at BHP's historical performance it has an excellent track record of doing this. For instance, it has increased earnings at an annualised rate of 8.5% during the last ten years and trading on a price to earnings (P/E) ratio of just 12.1 it could be a strong performer moving forward.
Australia and New Zealand Banking Group
Another blue-chip stalwart, Australia and New Zealand Banking Group (ASX: ANZ) has real potential. That's because it continues to trade on a relatively low P/E ratio despite delivering excellent earnings growth in the last year.
For example, ANZ currently has a P/E ratio of just 12, which is lower than the ASX's P/E ratio of 14.9 and also below the wider banking sector's P/E ratio of 13.9. That's after ANZ increased its bottom line by an incredible 21.3% last year, and with a yield of 5.8% (fully franked) it seems to offer excellent income prospects as well as good value, too. As such, it could be all set for a great 2015 and appears to be worth buying at the present time.
Oil Search Limited
With ExxonMobil signing a Memorandum of Understanding with the Papua New Guinea (PNG) government regarding the expansion of the PNG liquefied natural gas (LNG) project, things could be on the up for Oil Search Limited (ASX: OSH). That's because it is a stakeholder in the project and its shares rose by 3.6% yesterday on the news.
This means that Oil Search's future appears to be a little brighter and, while the declining price of oil is a concern, earnings growth of 55% in the last year shows that Oil Search could still be a top notch growth play. And, with its shares trading on a price to earnings growth (PEG) ratio of just 0.3, a higher share price could be on the cards later on this year.
