2015's top 5 blue chips and 5 more to buy soon

Macquarie Group Ltd (ASX:MQG) looks expensive, is it time to buy SEEK Limited (ASX:SEK)?

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The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up nearly 6% this year, today trading at around 5,700 points, but is nearly 300 points (or another 5%) away from the high of 5,996.90 reached in late April.

The S&P/ASX 200 rise has been driven higher by a strong performance from some previously unloved stocks and increased takeover activity.

Leading the way with a 50% rise since January 1 has been Qantas Airways Limited (ASX: QAN), which has been reinvigorated by a management team lead by Alan Joyce that has silenced almost all of its doubters. Huge operational cost savings, combined with lower fuel costs and the improved efficiency of new aircraft will see Qantas post close to its biggest profit ever!

A similar story has unfolded at Macquarie Group Ltd (ASX: MQG), where the share price has soared 41% this year to over $80, up from a low of below $20 during the GFC. It's delivering record profits and exciting investors, yet it trades on an undemanding trailing price to earnings ratio of 17.

With such great results so far, turnarounds appear to be the flavour of the month and investors have also turned their attention to QBE Insurance Group Ltd (ASX: QBE) and Newcrest Mining Limited (ASX: NCM).

QBE is looking the best it has in years, which has seen the share price rise 29% in 2015, and it could go much higher with compound earnings growth of 30% expected over the next two financial years. Newcrest is in a similar position, where a turnaround appears to be taking hold after years of poor operational performance and a strong Australian dollar dampened earnings.

Rounding out the five is TPG Telecom Ltd (ASX: TPM), which is up 34%, however this has been influenced by takeover activity.

The Next 5 to TAKE-OFF

5 companies that offer substantial upside from their current position include some perennial favourites that have fallen back after many successful years. REA Group Limited (ASX: REA), Woolworths Limited (ASX: WOW), Woodside Petroleum Limited (ASX: WPL), SEEK Limited (ASX: SEK) and ResMed Inc. (CHESS) (ASX: RMD) have fallen heavily and could be targets for a second-half turnaround in 2015.

Motley Fool contributor Andrew Mudie owns shares of QBE Insurance Group Ltd.. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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